Good Afternoon fellow mileage trackers; Buddy is back with why you might want to be taking the standard mileage deduction over itemization! Today I’m going to give you some helpful tips on how tracking your miles and keeping good records can help you save money during tax season.
If you hold a profession where you are using your own vehicle throughout the work day (Lyft/Uber driver, Independent Contractor, Self- Employed, etc), you probably know by now that it is important to keep track of certain expenses for tax purposes.
Things to keep track of:
1.) Gas money, oil changes, wear and tear/maintenance, tires, etc.
2.) Miles traveled (odometer reading from point A to point B; every trip).
3.) Vehicle expenses such as car payments, insurance, cost to get the car registered, etc.
4.) Any other miscellaneous vehicle related expenses attributed to the job (i.e. car washes, interior detail, etc).
In the past, you were probably told how important it was to save your receipts for all these things. Maybe you kept a folder at home and put all car related expenses in it.
In the modern world, we’re tracking our miles which makes things more efficient by taking the standard mileage deduction ($0.54/mile in the U.S.) instead of an itemized deduction where you keep track of everything including receipts. Not only is this a benefit to us in a practical sense, it is also more cost effective because your mileage deduction could potentially be greater than your itemized deduction.
mileMate- Trips at your tips!
Keeping track of your miles just got simpler with mileMate. mileMate takes the burden off because you never have to worry about writing down miles, the date, or the vehicle used. mileMate keeps track of it all with a simple and intuitive user interface. Plus, you can request and print off a report of everything at the end of the year to use during tax season. Simple! Did we mention that you have unlimited ability to track your miles without having to purchase the pro version of the app?
I hope that you found this information helpful today. Thanks for reading and stay tuned for the next blog!
-Buddy, your mileMate
When you’re busy on the road doing your work, time is money! Download the mileMate app today:
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The above information cannot be considered legal or professional tax advice. Taking the standard mileage deduction may not be your best option; as always, consult a tax professional for help. Also, refer to the United States IRS website (or your local country) for more information about deductions and taxes.