Construction workers can take advantage of a mileage deduction on their taxes by carefully tracking their mileage and maintaining accurate records. It is important to declare mileage on your tax if you want to take advantage of these deductions, and in order to qualify for them, you need to provide proof and physical evidence such as gas receipts and mileage logs.
If an employee uses their personal vehicle for business purposes, you can reimburse those miles on your tax return, as well. If you are an independent contractor, you can take a mileage deduction for the miles accrued while you were driving to temporary jobs, going to meet clients, and traveling for any work-related reasons.
Here are a few other things that you’ll need to know about the mileage deduction for construction workers:
It’s crucial to follow the IRS requirements for tracking mileage in order to take a mileage deduction on your tax return. If you want to deduct mileage, it’s important for you to log and record your mileage, the dates of these business trips, your starting point, your destination, and the business purpose, as well as track your total mileage for that year.
It’s highly recommended that you add to a record every time you incur mileage so that you can accurately keep track of it. Every single detail mentioned above needs to be recorded. Otherwise, your evidence may not be accepted. Also, remember that you must provide documentation pertaining to the mileage deduction that you are trying to claim.
How To Track Mileage More Efficiently
Although there is no specific method that the IRS requires you to follow, you will need to make sure that you include all the information they need, no matter how you track your mileage or which method you use to track those numbers. Some people will manually keep a logbook or make an Excel spreadsheet in order to track all of the numbers. However, manual record keeping can be time-consuming, costly, and prone to mistakes.
These days, there is technology that will do the mileage tracking for you. You can download mileage tracking apps that will save you both time and money while making things so much easier. Construction workers can hook up a device that works with the application to their vehicles in order to efficiently track their mileage. Through this application and device, you can see more than just mileage. There is also a GPS tracking system and other vehicle status reports that will make organization a breeze!
How You Can Maximize on Your Deduction
Although it may seem like only a tiny bit per mile, the few cents that you’ll save with this mileage deduction will add up quickly. As a construction worker, you will be doing a lot of driving around, whether you’re going to meet clients or visiting a site for work. A mere 100 miles a week can add up to save you more than $2500 on your taxes! If you think you drive more than 100 miles a week, you will want to start tracking your miles in order to get a mileage deduction.
Timeero provides modern, affordable mileage tracking software for enterprises, get in touch today to see how we can help!