2022 Updates to Meals and Mileage

Happy New Year! Please review the following information regarding 2022 meal deductions and mileage reimbursement rates. 

Meals:

In November 2021, the IRS confirmed that for 2022, business meals will continue to be deductible at 100%. This temporary measure started in January 2021 and was enacted by the Disaster Relief Act of 2020. Food and beverage purchased through the end of this year for business reasons will be 100% deductible on your tax return. The previous 50% deductible rate will likely return in January 2023. 

 For further information, please check out this IRS news release.

Mileage:

The deductible business use mileage rate has been increased from $0.56 per mile to $0.585 per mile for 2022. 

At Business by the Book, we have updated our payroll procedure and templates for our current payroll clients to this new rate starting with all January 2022 mileage that is submitted for reimbursement. If you are a current payroll client and do not wish to change your mileage reimbursement rate to the new $0.585 cents per mile, please inform your Account Manager as soon as possible. 

For more information, please see below for the IRS bulletin.

https://www.irs.gov/newsroom/irs-issues-standard-mileage-rates-for-2022.  

If you have any questions regarding this information, please contact your Account Manager. This post is meant for informational and educational purposes. It is not tax, legal, or financial advice. As always, Business by the Book recommends that you consult with your CPA regarding any tax questions.