Did you know that you can save money on your taxes by tracking your mileage? It’s true! By keeping track of the miles you drive for business purposes, you can get deductions on your taxes.
In the past, people maintained a mileage logbook on paper or in Excel. But now, there are much more efficient and automatic ways to track your mileage on your phone.
In this article, we’ll discuss tracking mileage for taxes and show you how to track mileage for work using your phone.
Standard Mileage Rate vs. Actual Method
The standard mileage rate is the most commonly used method. With this method, you maintain your IRS mileage log by simply multiplying your total miles driven for the year by the IRS standard mileage rate.
The actual method, on the other hand, involves tracking all of your vehicle expenses (gas, oil, repairs, etc.) and then taking a deduction for the percentage of your car that is used for business.
The best way to figure out which method is best for you is to use a mileage tracker. One of our favorites is MileageWise, which tracks your mileage and calculates your deduction for you. It’s available for iPhone and Android.
Tracking Mileage for Taxes
When it comes to maintaining an IRS-approved mileage log for taxes, there are a few different options to choose from.
No matter which method you choose, it’s important to be as accurate as possible in order to get the most deductions when tax time comes. Here’s a closer look at each option:
Pen and Paper
You can maintain a simple mileage log with pen and paper, but it can also be the most error-prone.
Excel Spreadsheet
Using an Excel spreadsheet to track your mileage is a step up from the pen and paper method, as it allows you to easily add, edit, and delete entries as needed. Plus, you can use formulas to calculate your total mileage for the year.
Mileage Log App
If you really want to make things easy on yourself, consider using a mileage log app.
With a mileage tracker app, you can automatically track your mileage without having to remember to manually enter it into a spreadsheet or notebook. Simply set up the app to track your trips and let it do the work for you.
Most Important Mileage Tracker App Features
- Free trial period
- Trip import from Google Timeline to create your Google Maps mileage log
- Recreate your forgotten past mileage with AI-powered technology
- Automatic trip tracking modes like car Bluetooth tracking, vehicle movement monitoring, manual recording, and Plug’N’Go phone charge tracking
- 100% IRS-compliant mileage log
- $12,000 mileage tax deduction on average for one tax year per car
Forgot to Track Your Mileage?
MileageWise can help.
If you’ve forgotten to track your mileage, don’t worry – MileageWise can help you backtrack it. All you need is your car’s make, model, and year, and they’ll do the rest.
MileageWise is the most accurate and user-friendly mileage tracker available. Whether you’re trying to save money on gas, or you’re just curious about your car’s performance, this company can help.
VIP Mileage Log Preparation Service
Do you often find yourself behind on your mileage log for IRS? Do you dread having to go back and try to remember all of your trips? MileageWise provides a VIP mileage log preparation service that will take the burden off of you.
MileageWise will create your mileage log for you to claim mileage reimbursement. All you need to do is provide them with your trips. They’ll take care of the rest. This service is perfect for busy professionals who don’t have the time to keep up with their mileage logs.
With MileageWise’s VIP mileage log preparation service, you can rest assured that your mileage log will be accurate and up-to-date.
All of your trips will be accounted for so you can focus on more important things.
Contact MileageWise today to learn more about mileage log for taxes.