Update: Because of the rising cost of gasoline, the Internal Revenue Service (IRS) announced on June 9, 2022, an increase in the optional standard mileage rate for the remaining six months of the year. Beginning on July 1, 2022, the standard mileage rates for the use of a car, van, pickup, or panel truck is:
- 62.5 cents per mile driven for business use, an increase of 4 cents from the rate set on January 1, 2022
- 22 cents per mile driven for medical or moving purposes, up 4 cents from the rate set on January 1, 2022
- 14 cents per mile driven in service of charitable organizations—this remains unchanged because it can only be altered by an act of US Congress
For travel from January 1, 2022, through June 30, 2022, churches should use the rates from Notice 2022-03.
“It is important to note that under the Tax Cuts and Jobs Act, taxpayers cannot claim a miscellaneous itemized deduction for unreimbursed employee travel expenses,” the IRS noted in a press release. “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.”
Church employees who drive their personal vehicles for church-related business (visitations, special events, and so on) can be reimbursed by the church, if they properly track their business miles. Since unreimbursed employee business expenses are currently not deductible, employees can no longer calculate a mileage deduction on their annual tax returns. Current law allows for a reinstatement of the deduction for unreimbursed employee business expenses in 2026.
For more on reimbursements of transportation expenses and other key tax guidance for churches and ministers, see the 2022 Church & Clergy Tax Guide.