# IRS raising mileage deduction



## Frontier Guy (Dec 27, 2015)

IRS has announced they are raising the vehicle mileage deduction to .62 cpm for second half of 2022


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## losiglow (Dec 4, 2018)

Sweet. I figured they would. Just wondered how much.


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## Disgusted Driver (Jan 9, 2015)

Interesting. So are they going to have a different rate for the first half of the year? 

62 cents should cover a lot of income.


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## Seamus (Jun 21, 2018)




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## Daisey77 (Jan 13, 2016)

Disgusted Driver said:


> 62 cents should cover a lot of income.


Especially since there's not a lot of income😂 in fact it should cover most, if not all of it . . . sad but true


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## Uber's Guber (Oct 22, 2017)

Frontier Guy said:


> IRS has announced they are raising the vehicle mileage deduction to .62 cpm for second half of 2022


An acknowledgment on the part of the IRS how bad the economy quickly got out of hand. I read in the Wall Street Journal that Social Security recipients will be getting a huge cost-of-living (COLA) raise in 2023 to help offset their suffering inflationary woes. Though seniors are celebrating the news, the drawback is the reduction in the longevity of the solvency of the program for future retirees who are counting on social security benefits when they age.

#fjb


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## tohunt4me (Nov 23, 2015)

Disgusted Driver said:


> Interesting. So are they going to have a different rate for the first half of the year?
> 
> 62 cents should cover a lot of income.


Split rate for year will cause documentation troubles !

Not everyone doing Uber is a " book keeper" !


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## tohunt4me (Nov 23, 2015)

Uber's Guber said:


> An acknowledgment on the part of the IRS how bad the economy quickly got out of hand. I read in the Wall Street Journal that Social Security recipients will be getting a huge cost-of-living (COLA) raise in 2023 to help offset their suffering inflationary woes. Though seniors are celebrating the news, the drawback is the reduction in the longevity of the solvency of the program for future retirees who are counting on social security benefits when they age.
> 
> #fjb


They FOUND a way to rob me of mine !


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## tohunt4me (Nov 23, 2015)




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## Uber's Guber (Oct 22, 2017)

tohunt4me said:


> Split rate for year will cause documentation troubles !
> Not everyone found Uber is a " book keeper" !


The IRS always knows how to complicate things. I can carry the Constitution in my front shirt pocket. I need two trucks to haul the tax code around.


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## FLKeys (Dec 27, 2018)

They have done it in the past, I had another tread going on this subject where I was speculating they would be doing this. Glad they did, it helps some.

This should be in the tax section, I am moving it there.


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## Rampage (8 mo ago)

Uber's Guber said:


> An acknowledgment on the part of the IRS how bad the economy quickly got out of hand. I read in the Wall Street Journal that Social Security recipients will be getting a huge cost-of-living (COLA) raise in 2023 to help offset their suffering inflationary woes. Though seniors are celebrating the news, the drawback is the reduction in the longevity of the solvency of the program for future retirees who are counting on social security benefits when they age.
> 
> #fjb


It’s ok. Al Gore says we will be underwater and dead by 2014. Wait, what year is this?


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## Uber's Guber (Oct 22, 2017)

Rampage said:


> It’s ok. Al Gore says we will be underwater and dead by 2014. Wait, what year is this?


AOC was kind enough to extend our doomsday to 2030. 😅


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## Stevie The magic Unicorn (Apr 3, 2018)

That was nice of them,

Too bad I write off actual expenses...


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## Anngil (Oct 11, 2021)

Frontier Guy said:


> IRS has announced they are raising the vehicle mileage deduction to .62 cpm for second half of 2022


Good to know, thanks


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## Seamus (Jun 21, 2018)

Stevie The magic Unicorn said:


> That was nice of them,
> 
> Too bad I write off actual expenses...


Well of course you do, you lease a cab!! Who wouldn’t under that scenario?


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## Amsoil Uber Connect (Jan 14, 2015)

Soooo. this proves the price of gas is not coming down anytime soon.


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## nosurgenodrive (May 13, 2019)

If you drive 35k a year, you get a whopping $1400 extra in deductions. Not impressed.


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## nosurgenodrive (May 13, 2019)

nosurgenodrive said:


> If you drive 35k a year, you get a whopping $1400 extra in deductions. Not impressed.


Actually, $700 if only half of the year.


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## Invisible (Jun 15, 2018)

Uber's Guber said:


> AOC was kind enough to extend our doomsday to 2030. 😅


Perfect, I expect to be gone by then.


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## Frontier Guy (Dec 27, 2015)

tohunt4me said:


> Split rate for year will cause documentation troubles !
> 
> Not everyone doing Uber is a " book keeper" !


If you are keeping a good mileage log, should be a piece of cake to calculate the difference


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## Frontier Guy (Dec 27, 2015)

Amsoil Uber Connect said:


> Soooo. this proves the price of gas is not coming down anytime soon.


Well, maybe if Joe's ganglia and synapsis start firing on all cylinders again, so no


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## Stevie The magic Unicorn (Apr 3, 2018)

Frontier Guy said:


> If you are keeping a good mileage log, should be a piece of cake to calculate the difference


Just divide the number you pulled out of your ass in two, and then add 5% to the second higher number, then unround it to something that looks like a good random number.

#problem solved


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## Daisey77 (Jan 13, 2016)

I just realized here in our Market, Uber X drivers will be working . . . for free? They get paid $0.60 a mile. Am I thinking this correctly?


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## Frontier Guy (Dec 27, 2015)

Daisey77 said:


> I just realized here in our Market, Uber X drivers will be working . . . for free? They get paid $0.60 a mile. Am I thinking this correctly?


Because they weren't already?


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## FLKeys (Dec 27, 2018)

Daisey77 said:


> I just realized here in our Market, Uber X drivers will be working . . . for free? They get paid $0.60 a mile. Am I thinking this correctly?


Working Tax Free yes.

It really comes down to your cost per mile and ability to control dead miles.


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## 25rides7daysaweek (Nov 20, 2017)

Uber's Guber said:


> AOC was kind enough to extend our doomsday to 2030. 😅


If I started to hit that right now 
I would keep on going continuously
until 2030 or doomsday
Whichever occurs first 😍


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## Disgusted Driver (Jan 9, 2015)

Daisey77 said:


> I just realized here in our Market, Uber X drivers will be working . . . for free? They get paid $0.60 a mile. Am I thinking this correctly?


On the one hand it doesn't account for base fare, surges, minimium ride supplements, promotions, cleaning fees and tips. On the other hand, it doesn't account for dead miles either so from a tax point of view there may not be much taxable income.


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## Carlos unique (Oct 7, 2018)

Uber's Guber said:


> An acknowledgment on the part of the IRS how bad the economy quickly got out of hand. I read in the Wall Street Journal that Social Security recipients will be getting a huge cost-of-living (COLA) raise in 2023 to help offset their suffering inflationary woes. Though seniors are celebrating the news, the drawback is the reduction in the longevity of the solvency of the program for future retirees who are counting on social security benefits when they age.
> 
> #fjb


Dam if you do,dam if you don't!


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## Jack Malarkey (Jan 11, 2016)

The mileage deduction in the United States is relatively generous because it doesn’t have any cap on the number of business miles that can be claimed this way.

By contrast, in Australia the cents per kilometre method (proposed to be AUD$0.75 per kilometre from 1 July 2022) applies for a maximum claim of 5,000 business kilometres (about 3,100 miles) per car.

If you want to claim more than that, you need in Australia to claim based on actual and substantiated expenses. This typically works out as being a significantly lower deduction than an uncapped cents per kilometre method wound result in.


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## Seamus (Jun 21, 2018)

Jack Malarkey said:


> The mileage deduction in the United States is relatively generous because it doesn’t have any cap on the number of business miles that can be claimed this way.
> 
> By contrast, in Australia the cents per kilometre method (proposed to be AUD$0.75 per kilometre from 1 July 2022) applies for a maximum claim of 5,000 business kilometres (about 3,100 miles) per car.
> 
> If you want to claim more than that, you need in Australia to claim based on actual and substantiated expenses. This typically works out as being a significantly lower deduction than an uncapped cents per kilometre method wound result in.


Wow, that's very interesting. In the US the standard mileage deduction is by far the biggest deduction for drivers. Full timers commonly put 36,000 miles + per year so they would pay far more taxes if the had the Australia rules in place.


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## Ted Fink (Mar 19, 2018)

Jack Malarkey said:


> The mileage deduction in the United States is relatively generous because it doesn’t have any cap on the number of business miles that can be claimed this way.
> 
> By contrast, in Australia the cents per kilometre method (proposed to be AUD$0.75 per kilometre from 1 July 2022) applies for a maximum claim of 5,000 business kilometres (about 3,100 miles) per car.
> 
> If you want to claim more than that, you need in Australia to claim based on actual and substantiated expenses. This typically works out as being a significantly lower deduction than an uncapped cents per kilometre method wound result in.


That sucks. I drive 30,000-40,000 business miles per year.


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## Daisey77 (Jan 13, 2016)

Jack Malarkey said:


> The mileage deduction in the United States is relatively generous because it doesn’t have any cap on the number of business miles that can be claimed this way.
> 
> By contrast, in Australia the cents per kilometre method (proposed to be AUD$0.75 per kilometre from 1 July 2022) applies for a maximum claim of 5,000 business kilometres (about 3,100 miles) per car.
> 
> If you want to claim more than that, you need in Australia to claim based on actual and substantiated expenses. This typically works out as being a significantly lower deduction than an uncapped cents per kilometre method wound result in.



I average 50K miles a year. So that means damn near 47k miles I would be SOL? Is there some other kind of tax benefit you guys get or perhaps you don't pay taxes to begin with? How much do you typically owe at the end of the year?


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## Judge and Jury (Oct 19, 2019)

tohunt4me said:


> Split rate for year will cause documentation troubles !
> 
> Not everyone doing Uber is a " book keeper" !


Sounds like a you problem.

Mileage is usually the largest deduction for drivers.

I use pen and paper and load the data into an Excel file.

Read many posts where app based mileage trackers glitch or are very inaccurate.

The only glitch I have encountered with pen and paper was recently.

I spit my coffee all over my hand written records when a poster on this forum was trying to argue that UE and DD do not hide tips.

Coffee projectile through my nostrils into the cubby where I store my records.

Luckily, I deliver food and there was no pax in the car to give me a one star rating.


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## Jack Malarkey (Jan 11, 2016)

Daisey77 said:


> I average 50K miles a year. So that means damn near 47k miles I would be SOL? Is there some other kind of tax benefit you guys get or perhaps you don't pay taxes to begin with? How much do you typically owe at the end of the year?


In Australia, we claim car expenses but we almost invariably do so based on actual expenses. This requires record-keeping that goes beyond distance travelled on business.

See:









Tax Deductions for Uber Drivers


Find out exactly what you can claim, how to keep a logbook, how to claim your vehicle expenses and a range of other tax deductions for Uber drivers.




www.drivetax.com.au





The cents per kilometre method is directed to occasional drivers travelling smaller distances on business.

The big tax benefit we get is immediate write-off for car and phone purchases, but most drivers do pay tax.

I would typically owe about AUD$3,000 at the end of the tax year but this varies significantly from driver to driver.

We also have filing obligations and liabilities under our GST (goods and services tax), which is a form of value-added tax.


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## Judge and Jury (Oct 19, 2019)

nosurgenodrive said:


> If you drive 35k a year, you get a whopping $1400 extra in deductions. Not impressed.


Seems a mid-year alteration is pretty rare.

So, you would be happier if there was no adjustment at all?

Haha!

When the gov't trying to help you out, it ain't good enough.

Want you want? The gov't to provide you with a card for unlimited free gasoline?


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## Judge and Jury (Oct 19, 2019)

Rampage said:


> It’s ok. Al Gore says we will be underwater and dead by 2014. Wait, what year is this?


The Mayan calendar ended in 2012.

The earth was destroyed in that year.

Didn't you see the documentary?


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## Judge and Jury (Oct 19, 2019)

Stevie The magic Unicorn said:


> That was nice of them,
> 
> Too bad I write off actual expenses...


Back when I was a manager in the newspaper delivery business;

I kept receipts for every gas purchase, oil change, brake repair and transmission overhaul for two years.

My mileage in that position was actually greater than my current gigs.

The mileage deduction was always two or three times greater than my actual expenses.

Seems you doing it wrong.


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## Seamus (Jun 21, 2018)

Judge and Jury said:


> Back when I was a manager in the newspaper delivery business;
> 
> I kept receipts for every gas purchase, oil change, brake repair and transmission overhaul for two years.
> 
> ...


No, what he isn't mentioning is he rents a Taxi. You can't take the standard mileage deduction on a taxi you don't even own so he must do direct expense.


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## Stevie The magic Unicorn (Apr 3, 2018)

Seamus said:


> No, what he isn't mentioning is he rents a Taxi. You can't take the standard mileage deduction on a taxi you don't even own so he must do direct expense.


Yup, for Monday/Tuesday 

265 miles x .585 = $155.02

actual expenses.

$150 (taxi rental)
$51 (gasoline)

$202 in actual expenses.

Not only am I required by the IRS to write off actual expenses but it actually comes out higher then the standard mileage rate anyway.

So take the $489 I made and $202 is actual expenses for mileage.

also write off the $9.00 in tolls. Puts my total taxable expenses at at $211.

which means I ha e to pay taxes on $279 for those 2 days. (12 hours Monday 6 on Tuesday)

Had I driven Uber x I would have a zero tax bill on $150-200 minus expenses on 350 miles driven (because you have to drive more miles to get half as much in revenue in the same time worked here doing Uber)

so yeah $30 will get paid to the irs for those days comes July 1st when I make my monthly payment to Uncle Sam.

And like I said… no standard mileage for me.


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## Seamus (Jun 21, 2018)

Stevie The magic Unicorn said:


> Yup, for Monday/Tuesday
> 
> 265 miles x .585 = $155.02
> 
> ...


It's obvious that for those that want to make a living out of giving passengers rides, a Taxi has many advantages.


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## Mr.Do (Nov 6, 2019)

Amsoil Uber Connect said:


> Soooo. this proves the price of gas is not coming down anytime soon.


No, unfortunately gas price are not going down anytime soon. We are stuck like this for the next 5 or 6 years.


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## FLKeys (Dec 27, 2018)

Mr.Do said:


> No, unfortunately gas price are not going down anytime soon. We are stuck like this for the next 5 or 6 years.


I think in 18 months we will see a reduction, maybe to split the difference between the high and the last low.


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## ObeyTheNumbers (7 mo ago)

Frontier Guy said:


> IRS has announced they are raising the vehicle mileage deduction to .62 cpm for second half of 2022


Thanks for the heads up! 👍😁


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