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. Â Â
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. Â Â
The IRS requires you to document your mileage. You must log your: Â Â
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. Â Â
The IRS requires you to have a contemporaneous mileage log. That means you must record your miles soon after they occurred. Â Â
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. Â Â
Millions of people use a mileage-tracking app like MileIQ because it saves time, money and offers peace of mind. Â Â
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. Â Â
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. Â Â
MileIQ is used by millions of people who want automatic mileage-logging. You just drive, let MileIQ worry about your miles.