IRS Increases Standard Mileage Rates for Last Half of 2022 Advance Auto Parts

Healthcare Provider Update: Healthcare Provider for Advance Auto Parts: Advance Auto Parts offers healthcare benefits through a range of insurance carriers; specific providers may vary by location and plan. Generally, large employers like Advance Auto Parts collaborate with major insurers such as UnitedHealthcare, Anthem (Elevance Health), and others to provide health insurance options to their employees. It's advisable for employees to check specific plan details through their benefits resources for precise provider information. Potential Healthcare Cost Increases in 2026: As Advance Auto Parts prepares for 2026, employees could face significant increases in healthcare costs, driven by a dramatic rise in Affordable Care Act (ACA) premiums. Projections indicate that many states could see hikes exceeding 60%, primarily due to the expiration of enhanced federal premium subsidies and rising medical costs influenced by inflation. Notably, 51% of large employers, including Advance Auto Parts, may implement higher deductibles and out-of-pocket expenses to mitigate these costs, potentially shifting more financial burdens onto employees and complicating access to affordable coverage. Understanding these dynamics will be crucial for employees to effectively manage their healthcare expenses. Click here to learn more

'For Advance Auto Parts employees, the recent increase in the IRS standard mileage rate presents an excellent opportunity to maximize business-related deductions, offering immediate tax savings for those who rely on their personal vehicles for work-related travel,' said Kevin Landis, a representative of The Retirement Group, a division of Wealth Enhancement Group.

'With the IRS raising the standard mileage rate for business use, Advance Auto Parts employees should be sure to take advantage of this favorable adjustment, ensuring they capture every possible d eduction while managing the increased costs of vehicle operation,' said Paul Bergeron, a representative of The Retirement Group, a division of Wealth Enhancement Group.

In this article we will discuss:

• 1. The increase in standard mileage rates for business, medical, and moving purposes in 2022.

• 2. The specific deductions available for Advance Auto Parts employees based on mileage usage.

• 3. The IRS’s rare mid-year revision and its impact on vehicle-related tax deductions.

Due to recent increases in the price of petroleum, the Internal Revenue Service has increased the optional standard mileage rates for calculating the deductible costs of operating an automobile for business, medical, and relocating purposes for the second half of 2022. Statutorily established and unaltered, the standard mileage rate used to calculate the deductible costs of operating a vehicle for charitable purposes.

For July 1, 2022, to December 31, 2022, the standard mileage rates are as follows:

• Business use of auto : Our Advance Auto Parts customers may find this to be especially advantageous. If a vehicle is used for business purposes, a deduction of 62.5 cents per mile (increased from 58.5 cents for January 1, 2022 to June 30, 2022) is allowed. As an Advance Auto Parts employee, your employer may reimburse you for business-related travel expenses at the per-mile rate. Nevertheless, if Advance Auto Parts does not reimburse you for business-related travel expenses, you cannot deduct these costs as miscellaneous itemized deductions.

• Charitable use of auto : 14 cents per mile (the same as for January 1, 2022 through June 30, 2022) may be deducted if a vehicle is used to provide services to a charitable organization if you itemize your deductions on your tax return. Depending on the type of charity, your charitable deduction may be limited to a certain percentage of your adjusted gross income. We would like Advance Auto Parts customers to be aware of this.

• Medical use of auto : 22 cents per mile (increased from 18 cents per mile for January 1, 2022, through June 30, 2022) may be deducted if a vehicle is used to obtain medical care (or for other deductible medical purposes) if you itemize your deductions on your tax return. Also essential for Advance Auto Parts customers to remember is that you can only deduct the portion of your medical and dental expenses that exceeds 7.5% of your adjusted gross income.

• Moving expense : 22 cents per mile (increased from 18 cents per mile for January 1, 2022 to June 30, 2022) may be deducted if an auto is used by an active-duty member of the Armed Forces to move to a permanent change of station pursuant to a military order (unless such expenses are reimbursed). The moving expense deduction is not presently available to other taxpayers.

The IRS typically revises the standard mileage rates in the autumn for the following calendar year. Rarely does the IRS increase the standard mileage rates in the middle of the year; the last time this occurred was in 2011.

According to a recent announcement by the Internal Revenue Service (IRS) on September 20, 2022, it's worth noting that the standard mileage rate for business use of an automobile has increased to 62.5 cents per mile for the second half of 2022. This rate can be particularly advantageous for Advance Auto Parts workers who frequently use their personal vehicles for business-related purposes. It allows them to potentially claim higher deductions for their mileage expenses when calculating their tax returns. This increase reflects the rising costs of fuel and vehicle operation, offering some relief to individuals who rely on their vehicles for work-related travel. (Source: Internal Revenue Service, 'IRS Issues Standard Mileage Rates for Last Half of 2022,' September 20, 2022)

Imagine you're navigating a road trip to financial well-being in retirement. Along the way, you encounter different toll booths that determine the deductions you can claim for your vehicle expenses. For the second half of 2022, the toll booth operated by the Internal Revenue Service (IRS) has raised its rates, allowing you to enjoy more deductions for business-related mileage. It's like finding a new, more affordable route that saves you money on toll fees. As a Advance Auto Parts traveler, this can be especially advantageous, as you can now claim 62.5 cents per mile for business use, up from the previous rate. Just as a savvy driver selects the most cost-effective path, taking advantage of the increased standard mileage rates can steer you closer to your financial destination, providing you with added tax benefits for the miles you travel on your professional journey.

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Sources:

1. Internal Revenue Service.  IRS Issues Standard Mileage Rates for 2022 . U.S. Department of the Treasury, 17 Dec. 2021,  irs.gov/newsroom/irs-issues-standard-mileage-rates-for-2022 .

2. Internal Revenue Service.  IRS Increases Mileage Rate for Remainder of 2022 . U.S. Department of the Treasury, 9 June 2022,  irs.gov/newsroom/irs-increases-mileage-rate-for-remainder-of-2022 .

3. Miller, Stephen.  IRS Raises Standard Mileage Rate for Final Half of 2022 . SHRM, 9 June 2022,  shrm.org/topics-tools/news/benefits-compensation/irs-raises-standard-mileage-rate-final-half-2022 .

4. 'IRS Releases 2022 Mileage Rates and Vehicle Values.'  NFP , 17 Dec. 2021,  nfp.com/insights/irs-releases-2022-mileage-rates-and-vehicle-values .

5. 'IRS Revises Optional Standard Mileage Rates.'  NFP , 22 June 2022,  nfp.com/insights/irs-revises-optional-standard-mileage-rates .