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WM Wednesday Wisdom

2023 Mileage Rates

The IRS announced the 2023 standard mileage rates, effective January 1, 2023, for cars, vans, pickups or panel trucks. The below rates apply to electric and hybrid-electric automobiles as well as gasoline and diesel-powered vehicles.

Business Purposes

For cars, vans, pickups, or panel trucks used for business purposes, the standard mileage rate is 65.5 cents per mile.

Armed Forces

For medical or moving purposes for qualified active-duty members of the Armed Forces, the standard mileage rate is 22 cents per mile driven.

Charitable Organizations

For those in service of charitable organizations, the rate remains unchanged from 2022 and is 14 cents per mile driven.

Tax Cuts and Jobs Act Reminders

The IRS included a reminder 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.

Questions?

Should you have questions about year-end payroll processing, or any other topics related to your personal or business situation, please contact us at any time.

DISCLAIMER: The WM Update, WM Wednesday Wisdom, WM Daily Update COVID-19, COVID-19 Business Resources, COVID-19 Client News Alerts and other related communications are intended to provide general information, including information regarding legislative COVID-19 relief measures, as of the date of this communication and may reference information from reputable sources. Although our firm has made every reasonable effort to ensure that the information provided is accurate, we make no warranties, expressed or implied, on the information provided. As legislative efforts are still ongoing, we expect that there may be additional guidance and clarification from regulators that may modify some of the provisions in this communication. Some of those modifications may be significant. As such, be aware that this is not a comprehensive analysis of the subject matter covered and is not intended to provide specific recommendations to you or your business with respect to the matters addressed.