06 07 IRS News Release HeadLine image

【《We Chinese in AmericaMedia Editor Tang Zhao, December 31, 2022As an ongoing effort to enhance our valuable service to We Chinese in America website readers, We Chinese in America website posts English and Chinese versions of “IRS News Release” “IRS Fact Sheets” and “tax tips” directly received from IRS Media Relations Office in Washington, D.C.. We are pleased to take on this important role partnering with IRS to better inform the public.

IRS issues standard mileage rates for 2023; business use increases 3 cents per mile

 

WASHINGTON — The Internal Revenue Service today issued the 2023 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

                               

Beginning on Jan. 1, 2023, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

  • 65.5 cents per mile driven for business use, up 3 cents from the midyear increase setting the rate for the second half of 2022.
  • 22 cents per mile driven for medical or moving purposes for qualified active-duty members of the Armed Forces, consistent with the increased midyear rate set for the second half of 2022.
  • 14 cents per mile driven in service of charitable organizations; the rate is set by statute and remains unchanged from 2022.

These rates apply to electric and hybrid-electric automobiles, as well as gasoline and diesel-powered vehicles.

The standard mileage rate for business use is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs.

It is important to note that under the Tax Cuts and Jobs Act, taxpayers cannot claim a miscellaneous itemized deduction for unreimbursed employee travel expenses. Taxpayers also cannot claim a deduction for moving expenses, unless they are members of the Armed Forces on active duty moving under orders to a permanent change of station. For more details see Moving Expenses for Members of the Armed Forces.

Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.

Taxpayers can use the standard mileage rate but generally must opt to use it in the first year the car is available for business use. Then, in later years, they can choose either the standard mileage rate or actual expenses. Leased vehicles must use the standard mileage rate method for the entire lease period (including renewals) if the standard mileage rate is chosen.

Notice 2023-03 contains the optional 2023 standard mileage rates, as well as the maximum automobile cost used to calculate the allowance under a fixed and variable rate (FAVR) plan. In addition, the notice provides the maximum fair market value of employer-provided automobiles first made available to employees for personal use in calendar year 2023 for which employers may use the fleet-average valuation rule in or the vehicle cents-per-mile valuation rule.

Source: IRS News Release

Internal Resource Service

Media Relation Office

Washington, D. C

Media Contact: 202 317 4000

Public Contact: 800 829 1040

www.IRS.GOV/NewsRoom

This website has a free subscription function, please enter your email address and name (any nickname) in the upper right corner of the page. After subscribing, you can receive timely updates of the website. I hope that new and old readers will actively subscribe, so that we have the opportunity to provide you with better services

Please click: Home (wechineseus.com) for more news and content on this website

Follow The Chinese Media's Twitter account: https://twitter.com/wechineseinus

Follow The Chinese Media's Facebook account: https://www.facebook.com/wechineseinamerica/

Translate

简体中文 繁體中文 English Español

訂閱 Subscribe

---- 訂閱須知 INFO ----本网站已经开通免费订阅功能,请在网页右上角输入您的电邮地址及名字(任何昵称)。订阅后您可以及时收到网站的更新通知。希望新老读者踊跃订阅,让我们有机会能够为您提供更好的服务。In the U.S.A., We Chinese in America is the only magazine focusing on Chinese culture, history, and individuals who have contributed significantly to the Chinese community and/or larger community in general as well as information/news important to readers.To keep you informed of the most updated information/news, please subscribe to "We Chinese in America