Sterling Lexicon received news of a recent IRS Announcement relaying an increase to IRS Mileage rates effective July 1st. It is rare for the IRS to issue a change in mileage rates mid-year; in fact, the last time the Internal Revenue Service (IRS) published a mileage rate increase mid-year was in 2011.
We describe below how to apply mileage rates for relocation reporting:
- 22₵ per mile is the formerly excludable amount (will still be excludable from State Taxable income in the states that did not conform with 2018 TCJA – AR, CA, HI, MA, NJ, NY & PA)
- 40.5₵ per mile is taxable for Federal and in all US States and territories
- 62.5₵ per mile is the new Total
For more information, please visit IRS News Release.
If you have any questions do not hesitate to contact your Sterling Lexicon experts.