Gallego Touts IRS Mileage Reimbursement Increase at Roundtable with Lyft

Press Release

In May, Rep. Gallego called on the IRS to increase the mileage rate tax deduction so small business owners and rideshare drivers can save money on gas
PHOENIX, AZ -- Rep. Ruben Gallego (AZ-07) today toured the Lyft Driver Center in Phoenix and met with local Lyft drivers to discuss the benefits of the IRS increasing the 2022 optional standard mileage rate--the rate rideshare drivers use to deduct the cost of using their vehicles for work.

"Thanks in part to the leadership of Democrats in Congress and the Biden-Harris administration, the price of gas has retreated in recent weeks, but ensuring our small business owners and rideshare drivers have all the support they deserve means helping them continue to save money at the pump," said Rep. Gallego. "That's why I was excited to see the IRS adopt our idea to raise the mileage reimbursement rate, and I'm excited to meet today with local Lyft drivers to hear their thoughts on how we can help them continue to save money."

After touring the Lyft Driver Hub in Phoenix, Rep. Gallego met with four Arizona-based Lyft drivers who have supplemented their income by driving for Lyft.

"Eighty-two percent of Arizona Lyft drivers say that Lyft and other app-based work allows them to earn money while pursuing other endeavors, such as starting a new business, pursuing education, or interviewing for full-time jobs," said Danielle Aviles Krueger, Head of Federal Policy at Lyft. "We thank Congressman Gallego for taking the time to hear directly from Arizona Lyft drivers about their preference for independence and flexibility. We also thank Congressman Gallego for his advocacy in increasing the IRS mileage reimbursement rate, which helps these workers and others all across the country. We look forward to continuing to work with the Congressman and other lawmakers to support drivers and riders."

In July, the IRS announced an adjustment to the 2022 optional standard mileage rate used to deduct the cost of operating an automobile for business purposes to 62.5 cents a mile, up from 58.5 cents. Commissioner Rettig's decision came weeks after Rep. Gallego and Rep. Sharice Davids (KS-03) sent a letter to the revenue service urging the IRS to act quickly to increase the 2022 rates. The adjustment means rideshare drivers for companies like Lyft can save more money on gas by claiming a higher reimbursement amount on their taxes.

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Rep. Ruben Gallego is a Marine Corps combat veteran who served in Iraq. He serves on the House Armed Services Committee, the House Natural Resources Committee, and the House Committee on Veterans' Affairs.

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