Mileage deduction can mean a fairly big amount of money (approx. $12,000) at the end of the tax year if you drive your own car for business purposes. You can always claim mileage on your taxes if you know how to keep track of mileage for taxes.
Want to know how to keep track of mileage for taxes?
According to the IRS, your mileage log must include a record of:
- the total mileage you drove in the tax year for business, commuting, and personal driving other than commuting,
- the first odometer or the last odometer reading of the year,
- the dates of your business trips,
- the address of the business partner you’ve visited,
- and the purpose of your trips.
The best choice to keep track of mileage for taxes is to have a contemporaneous mileage log. For that, the best solution was using a mileage tracker application, but for different technical difficulties like:
- unpredictable activation of automatic trip logging (sometimes logging miles, sometimes stopping without any sign),
- sudden crashes of the app while in use,
- the disappearance of mileage logs,
mild or major errors in your mileage log will appear, which then you will have to correct afterward.
Now, you wonder, why is it any different than writing your driven mileage down into a paper mileage log book every time you start your car and stop it at one of your business partners?
Well, it’s almost exactly as much time and energy as keeping a mileage logbook.
On top of that mileage trackers with GPS technology can only track real-time driving. You can’t use them for creating retrospective mileage logs.
There is a better answer for the question of how to keep track of mileage for taxes
The MileageWise mileage tracker app only uses your data when you arrive at your destination, recommending the parameters with which the trip should be saved and automatically creates the driven distance and route after the trip ended. No real-time GPS tracking needed. All the fuss with using up all your data for the month in the process, and killing your phone’s battery, disappears.
With the MileageWise Web Dashboard, if you’re worried that the end of the 2020 tax year is near: worry no more! Create as much retrospective log as you want to, and we make sure with the AdWise feature and the Built-in IRS Auditor who checks 70 logical conflicts (also monitoring the applicable legislation in that period) that your recommended logs are good to go and IRS-proof, meeting every expectation.
MileageWise saves your mileage logs securely in the cloud, so you never have to worry about losing it.
Useful links for mileage logging
- Calculate your past odometer readings
- Estimate your actual fuel consumption
- Publication 463, Travel, Gift, and Car Expenses
- Topic No. 305 Recordkeeping
- Publication 583, Starting a Business and Keeping Records
- Tax Guide for Small Business (For Individuals Who Use Schedule C or C-EZ)