News You Can Use: IRS Raises Mileage Deduction

Gas Pump

( – From the “News You Can Use” file, the good news is the Internal Revenue Service is raising the mileage deduction that can be claimed on taxes. The bad news is that the increased deduction results from skyrocketing gasoline prices at the pump.

As The Hill reports in “IRS boosting mileage deduction as gas prices soar”:

“The IRS said that the standard mileage rate will increase by four cents to 62.5 cents per mile starting July 1.

“The mileage rate is also used by federal government agencies and other businesses that reimburse their employees for mileage, according to the statement.”

In a written statement, IRS Commissioner Charles Rettig said:

“The IRS is adjusting the standard mileage rates 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.”

What is your opinion about the Internal Revenue Service raising the mileage deduction that can be claimed on taxes because of the skyrocketing cost of gasoline at the pump? Please email [email protected] and share your thoughts. Do you think four cents per mile is enough of an increase to match the current price of gasoline? Why or why not?