Tax Year 2022 Update: The IRS Responds to Inflation With A Rare Midyear Mileage Rate Change
Business and Medical Mileage Change
Prices Means Infation
"The IRS is adjusting the standard mileage rates to better reflect the recent increase in fuel prices," said IRS Commissioner Chuck Rettig. "We are aware a number of unusual factors have come into play involving fuel costs, and we are taking this special step to help taxpayers, businesses and others who use this rate."
Though the price of fuel is definitely a major factor when it comes to calculating your mileage, there are other factors that have to be taken into account, including the rate at which your car depreciates as well as its insurance and any other fixed costs you might have.
Optional Business Standard Mileage Rate vs. Actual Costs
The optional business standard mileage rate is used to compute the deductible costs of operating an automobile for business use in lieu of tracking actual costs. This rate is also used as a benchmark by the federal government and many businesses to reimburse their employees for mileage. Taxpayers continue to have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates, although this does require extensive recordkeeping.
Midyear increases in the optional mileage rates are rare; the last time the IRS made such an increase was in 2011.
Further details are available in IR-2022-124.
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Business Insights: Why You Need More Then Data Analysis To Get The Full Picture?
Suppose, for example, a company is considering a brand-new offer that is supported by the data, which depicts that accepting said offer will result in a successful outcome. In addition to the data, certain questions must be answered:
Additionally, the privacy concerns of users are imperative to not only consider but also address, making it unwaveringly important that companies train their employees and teach them how to handle sensitive information.
Data is [Absolutely] integral for success
While data is not everything, it is not nothing, either. From artificial intelligence-driven systems that allow for personalization and drive productivity to data collected via social media platforms and predictive systems that identify problems before or shortly after they arise, data is undoubtedly an integral part of life today.
Perhaps the most valuable aspect of data collection is also the most problematic: the nature of privacy and how the data that is being collected is being used. Gone are the days in which data could be collected without much thought about doing so. Nowadays, concerns about the protection of consumers' privacy and speculation as to how companies are using the data they collect from users have resulted in strict government regulations.
For instance, there's the European Union's General Data Protection Regulation. While the United States has not enacted any regulations at the federal level, some states have taken it upon themselves to pass state-level laws. Similarly, certain tech companies have initiated actions and taken steps to protect the privacy of their users.
All of this is happening just as businesses are moving more and more of their operations online. Since online businesses rely on data to connect with users, they must create a new strategy that allows them to gather the first-party data they need to grow and thrive, while at the same time being in compliance with state laws and making users feel comfortable.
Strategies of this nature must combine better technology with a deep and trust-based relationship that companies develop with their users over time. Such strategies generally have four parts:
Before you can make smart and well-informed decisions, you must compile a holistic review of all pieces of information that have the potential to impact the end result. Companies that understand that will have an advantage over companies that do not.
Even if you have enough money in the bank and take home a consistent paycheck, you still need to make a conscious and consistent effort to manage your money effectively.
Concentrate on making incremental gains consistently. Financial situations rarely turn around overnight, as more often, positive change is brought about by many small wins.
Many people overestimate their financial stability. Even if you have enough money in the bank and take home a consistent paycheck, you still need to make a conscious and consistent effort to manage your money effectively.
If you want more financial freedom and to take complete control of your finances, follow these 5 guidelines.
Create a Budget
A true budget is much more than a dollar amount you don't exceed each month. Have you listed and added up your expenses lately? If you haven't, there's a good chance you're spending more than you think. Keep close track of where your money is going so you can adjust accordingly. You should never be unsure of what you can and can't afford
Pay Down Debt
The interest you pay on debt is money you're literally giving away. If you have a large balance on a credit card, limit your spending on that card until you pay it down. If you're paying off student loans, try to pay more than the minimum so you actually see your total go down and you're not just paying the interest each month.
Build Your Savings
It can be downright painful to take even a small chunk out of your paycheck for savings, but if you can force yourself to do it the first few times, you'll be happy with the results when you start to see your savings account grow. Pick a realistic percentage of each paycheck to deposit into your savings account and hold yourself to the task. If you want your savings to grow faster, look into a savings account with higher interest. The bank may require that you keep a large balance in it at all time, but it's worth it for the interest your money will accrue.
Minimize Impulse Purchases
Payday is a wonderful thing, and there's nothing wrong with treating yourself in order to unwind after a long week. However, if you are thinking of purchasing an item you don't necessarily need, it's best to walk away from it and see if it's still on your mind a day or two later. If it is and you can afford it, then go for it. But you might find that you'd rather save the money.
Maximize Employee Benefits
Employee benefits are the company's way of thanking you for your hard work and supporting your overall well-being. Take them up on free gym memberships or parking passes instead of wasting your own money on these things. If your company has a 401k matching program, definitely enroll. Pick a dollar amount to take out of your paycheck that will go into the account each pay period. Choose a number that you're comfortable with but try to challenge yourself to put in more than you think you can. Your company will now match that number and you can watch your 401k blossom!
Acquiring financial freedom and being debt-free is one of the best feelings in the world. Contact us today for more information on how to get a handle on your personal finances.
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