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IRS Increases Standard Mileage Rates for Last Half of 2022 Party City Holdco

Healthcare Provider Update: Healthcare Provider for Party City Holdco Party City Holdco employees generally receive healthcare coverage through various major health insurance providers, including large insurers like UnitedHealthcare, Aetna, Anthem, and Cigna. These providers offer a range of plans tailored to meet the needs of employees while also adhering to regulations regarding healthcare coverage. Potential Healthcare Cost Increases in 2026 In 2026, healthcare costs are anticipated to surge significantly, with many employers projecting a median increase of around 10%. This escalation is primarily driven by spiraling medical expenses, including high-cost specialty prescriptions, and the expiration of enhanced subsidies under the Affordable Care Act (ACA). With certain states facing premium hikes of over 60%, individuals enrolled in the ACA plans may see their out-of-pocket expenses rise sharply, creating financial strain for many, particularly those approaching retirement. Employers and employees alike will need to prepare strategically to navigate these rising costs effectively. Click here to learn more

'For Party City Holdco 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, Party City Holdco 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 Party City Holdco 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 Party City Holdco 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 Party City Holdco employee, your employer may reimburse you for business-related travel expenses at the per-mile rate. Nevertheless, if Party City Holdco 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 Party City Holdco 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 Party City Holdco 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 Party City Holdco 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 Party City Holdco 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.