One way to reduce your tax bill is to track your mileage. Let's go over what mileage tracking is and why you may want to start doing it.
Most often, mileage tracking refers to keeping a mileage log for reimbursement or for tax deductions. For 2018, your business miles are worth 54.5 cents per mile. Many employers also require a mileage log when paying out a mileage reimbursement.
The IRS lets you deduct mileage for business, charity, moving and medical purposes. The IRS considers the following business drives:
It's important to note the IRS doesn't let you deduct your commute. The IRS considers where you live a personal choice, so driving to work is not deductible.
Your business drives are worth 54.5 cents per mile in 2018.
The IRS requires you to have documentation of your miles. You can use a mileage log template, a handwritten log or a mileage-tracking app like MileIQ. Millions of people rely on MileIQ because it provides automatic mileage tracking. This means you can focus on your business while making sure you're getting the largest deduction for your mileage.