IRS Makes Generous Move
This was greatly needed.
As gas prices reach $5 per gallon, the IRS is now moving to offer Americans mileage deductions because of extremely high fuel costs.
According to Market Watch, the federal tax deduction that businesses and self-employed taxpayers can use for work-related travel is going to become greater because of very high gas prices caused by inflation during the Biden Administration.
For business-related driving, the standard mileage rate is now increasing to 62.5 cents per mile starting in July. That is compared to the 58.5 per mile which was offered in December.
In a statement, the IRS explained that the 4 cent increase is meant “to better reflect the recent increase in fuel prices.”
“We are aware a number of unusual factors have come into play involving fuel costs, and we are taking this special step to help taxpayers, businesses and others who use this rate,” IRS Commissioner Charle Rettig explained.
