Tracking mileage for taxes is not an option but a must if you are self-employed, or an employer. In the past people used to do the calculations on paper, with a great risk of making an error resulting in fines. Nowadays, our digitized world allows us to use computers, phones, and applications, keeping track of all necessary data. What is the best way to track mileage for taxes, what’s business mileage, and are you obliged to log miles?
What are the requirements of the IRS mileage log?
In order to get a refund of your mileage log costs, there are a few requirements that you need to meet, all of them being held by the IRS. If you are willing to keep your mileage log for tax records are adequate, it’s necessary to follow and save each business trip’s mileage, which is necessary to get reimbursement. Then, the total miles driven for the calendar year are required, together with the date, time, location, or destination.
To make it even more complicated, each trip needs to have a purpose added – either it was a personal, or a business trip. Finally, you also have to submit year-end and start-of-year odometer reading. As self-employed, or an employer, submit the documents to the IRS directly, and in case of employees, they need to talk to their employer to ask for the reimbursement. Before you start tracking your mileage for taxes, read all about the IRS requierements, the purpose of your trip, and the way to keep mileage log.
All you need to know about mileage reimbursement
An employee using their private car for business trips is entitled to apply for reimbursement, which means a deductible mileage amount.
The situation on the list of possible mileage deductions is quite long, and it includes business errands, when driving to buy work-related supplies. You will also get a return for trips you took to meet your clients, for example during a business lunch. You can also calculate the trips between the branches or your company’s offices. Your way from home to work cannot be treated as business related, and it doesn’t count.
There are two standard methods of mileage deduction – the standard mileage rate, and the actual expenses method. The former is a simple mileage log example, where you only multiply the number of miles driven by the IRS’s Standard Mileage Rate (in 2023 it is 65.5 cents per business mile driven). The actual expenses method allows you for the deduction of all car-related expenditures, but prepare for much more work.
Is tracking mileage on the go possible?
We all know how precious our time is, so if you can start your mileage log for taxes on the go, you would be able to save lots of time. It’s possible when you use a special mileage tracker app with Automatic Tracking. Depending on the needs, experiences, and feedback, it uses excellent features to detect trips automatically for mileage log for tax purposes.
Why should you choose MileageWise?
There are a few ways of tracking vehicle mileage log, with the app to keep track of mileage being in the first place. MileageWise, is a mileage tracker app with over $1,000s of mileage tax deduction every year. No other app will help you to rece=reate your past mileage, based on the previous journeys and clients locations. It’s all done by AI powered technology.
There are three tracking modes, vehicle movement monitoring, Car Bluetooth tracking, and PLug’N’Go phone charger tracking, and manual recording. MileageWise imports trips from Google Map Timeline, making it possible to use Google for tracking. Such an app to keep track of mileage is 100% IRS-compliant.
