It’s common knowledge that business miles are deductible on your tax return. Every time you drive for business-related reasons, such as meeting clients or attending seminars, you can claim the mileage deduction come tax season. This also applies when you’re traveling by cab or Uber. It is very important that you keep track of your business miles. If not, you can lose a lot of money that you should’ve gotten.
Two Ways to Claim Your Business Mileage Tax Deduction
There are two ways to claim your tax deduction. The first way is to claim based on the standard mileage rate for the year. In 2019, the standard mileage rate is $0.58 per mile. The rate varies year by year, so you might want to check first before going for this option. If you multiply your business miles with the standard rate and the number ends up being higher than your actual expenses, then this option is for you.
Another way is to deduct the actual expenses incurred for business purposes such as lease payments, fuel costs, and car insurance. Having organized records of your business miles can help you make a decision on which option to choose.
Fortunately, the world has moved on from logging business miles on scrap paper and napkins. There are now multiple mileage tracking apps you can use to easily track your business miles with your own smartphone.
Here are some advantages of a mileage tracking app for your information:
1. Mileage Tracking Apps Provide Accurate Data
By using your smartphone to track your business miles, the information will be accurate and detailed. Imagine yourself coming home after a day of traveling, and as you intend to write down a detailed log of today’s journey, you find yourself estimating the numbers and recalling expenses for the day. These details can be slightly wrong or they can be entirely inaccurate. With mileage tracking apps, you can conveniently log the details as you go, including all the expenses such as toll fees and fuel costs. Moreover, good mileage tracking apps are able to generate IRS-compliant reports, which means that you can have a detailed and accurate data ready for you when tax season comes.
2. Mileage Tracking Apps Can Take the Stress Away
Having to manually log your business miles while you’re on the way to an important business meeting can be a hassle. You want to have a clear mind to focus on your presentation for the clients, not worry yourself with tracking business miles and expenses. Mileage tracking apps are automated, which means that you don’t have to calculate or log every detail by yourself. This allows you to focus on things that matter to your business and put your mind at ease.
3. Mileage Tracking Apps Can Increase Work Productivity
Your job is difficult enough as it is, and the last thing you need is more work. A mileage tracking app frees up your time so that you can do more productive things at work. Without the constant worry to keep track of every detail of your travel, your mind will be clearer and you will be more energized and driven to complete the task at hand.
Timeero provides modern, affordable mileage tracking software for enterprises, get in touch today to see how we can help!