You can save a lot on taxes by using the mileage deduction. But, it's not clear on how to keep track of mileage for taxes. Here's everything you need to know.
What Are My Miles Worth on Taxes?
You can deduct mileage for business, charity, medical and moving. The business and medical rates tend to change on a year-to-year basis. The charity rate has remained constant for years.
- 53.5 cents per mile for business in 2017
- 17 cents per mile for medical/moving
- 14 cents per mile for charity
What Requirements Does The IRS Have For Your Mileage?
The IRS requires you to document your mileage. You must log your:
- Your mileage for the year
- The places you drove for business
- Dates for your drives
- The business reason for your trip
The IRS also wants to know your total mileage for the year, your commuting miles and your personal, non-commuting drive. You should also record your beginning odometer reading.
The IRS requires you to have a contemporaneous mileage log. That means you must record your miles soon after they occurred.
How To Keep Track of Your Mileage For Taxes
The IRS doesn't specify how you must track your miles for taxes. Some people manually track using a mileage log Excel template, while others use a mileage-tracking app like MileIQ.
Why You Want To Use An App To Track Mileage
Millions of people use a mileage-tracking app like MileIQ because it saves time, money and offers peace of mind.
Manually logging your miles may seem easy but it eats up a lot of time. You have to track every single trip, no matter if you're running late, are sick or are just thinking about other things.
This leads to many people under-estimating their mileage deduction or, worse, over-estimating without proper documentation. This opens you up to audits and worries.
MileIQ is used by millions of people who want automatic mileage-logging. You just drive, let MileIQ worry about your miles.
