IRS Changes Mileage Rate
In an unusual, but expected, move, the Internal Revenue Service recently announced that they are raising the allowed reimbursement rate used for calculating business miles in private vehicles. Effective July 1, 2022, the new mileage rate will be 62.5 cents a mile, up from 58.5 cents a mile.
The IRS also announced that the moving costs and medical expenses rate would increase from 18 cents a mile to 22 cents a mile.
The changes are a reflection of higher fuel costs and the current inflationary impact on automobile travel. Although it has occurred a few times, it is highly unusual for the IRS to make such a mid-year change.
“With gasoline prices now well over $5.00 per gallon on average nationwide, the IRS recognized that employees were in desperate need of relief. This increase to 62.5 cents per mile will hopefully make up some of the difference of the increased costs of a pastor or church employee using their vehicle for church business purposes,” stated Art Rhodes, President and CEO of the Church of God Benefits Board, Inc. While recognizing that not all churches can pay the higher mileage amount, Rhodes went on to encourage churches to make this change, if possible, beginning July 1. Church budgets may need to be modified to cover these, and a host of other, increased costs.
Additional information about business expense reimbursement can be found in the Church Treasurer’s Manual and the Minister’s Compensation Manual, both available without cost at www.benefitsboard.com.
