What is a Mileage Log? To claim deductions on your tax returns, you have to keep meticulous records of your driving. Many people record the time weekly or monthly, which will not satisfy the IRS if there’s an audit of your records.
Depending on what type of driver you are, there are various ways you can use your mileage log and the IRS’s self-employed mileage deduction to your advantage. Choose a Method First you need to decide which deduction method to use. To use this mileage log template for Excel, you should record all your drives and then transfer to the sheet when you’re in front of the computer. If you’d like an easier way, consider using MileIQ.
Whether you’re driving part-time, full-time, or occasionally making deliveries, mileage can be one of your largest tax deductions as a self-employed worker.
Overview
Customers log on average $7,393 in mileage deductions per year with QuickBooks Self-Employed.1
drive, and we’ll use your phone’s
location to detect when you’re
driving.
makes categorizing individual trips
easy so you can accurately rack up
potential tax deductions
moving – so you get reliable data
without draining your battery.
Maximize deductions
Drive up potential deductions
Find on average 37% more deductions by logging miles annually.2
Make every mile count
Every mile is worth about 54 cents in tax deductions or mileage reimbursement to the IRS.3
Automatic means accurate
No more pen and paper. Mileage data is logged accurately and automatically.
Maximize deductions
Drive up potential deductionsFind on average 37% more deductions by
logging miles annually.2Make every mile count
Every mile is worth about 54 cents in tax
deductions or mileage reimbursement to the IRS.3Automatic means accurate
No more pen and paper. Mileage data is logged
accurately and automatically.
Mileage rates
Mileage rate 2018
Every year, the IRS publishes the standard mileage rate for calculating mileage deductions.4 The 2018 rate is 54.5 cents per business mile. Simply multiply the total business miles you drove last year by the standard mileage rate. Then, claim that number on your tax return as your business mileage tax deduction.
- Mileage rate 2019
- Mileage rate 2018
- Mileage rate 2017
- Mileage rate 2016
- Mileage rate 2015
- Mileage rate 2014
- Mileage rate 2013
- 58 cents per mile
- 54.5 cents per mile
- 53.5 cents per mile
- 54 cents per mile
- 57.5 cents per mile
- 56 cents per mile
- 56 cents per mile
Mileage deductions
There are two ways to calculate your business mileage deduction — the standard mileage method and the actual expense method. You won’t be able to take both deductions, so choose the method that best fits your work.
There are two ways to calculate your business mileage deduction — the standard mileage method and the actual expense method. You won’t be able to take both deductions, so choose the method that best fits your work.
Standard mileage method
Use the standard mileage method to calculate the amount of business mileage you can claim on your tax return. Just multiply your total business miles for the year by the standard mileage rate.
If you want to use the standard mileage method, you have to do so for the first year that you drive for work. Afterwards, you can choose between the standard mileage method and the actual expenses method. Keep in mind that if you choose the standard mileage method, you can’t deduct any other vehicle expenses.5
Standard deduction calculator
Enter business miles driven for year
This tool is for exemplary purposes only and not to be used as tax guidance.
- Travel between business locations (not between home and work)
- Business errands
- Travel to business meals
- Travel to business entertainment
- Drives to the airport for business travel
- Customer visits
- Travel to temporary job sites
- Travel to job interviews
- Tolls and parking during business trips
Actual expenses method
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The actual expenses method is more complex, but it may result in a bigger tax deduction for you. With this method, you can deduct vehicle-related costs if at least some of your driving is for business purposes.
The IRS requires that you substantiate your expenses with documentation, such as receipts, work orders, or other written records. For each expense, be sure to record the expense amount, expense date, place of service/purchase, and description, such as oil change, tire rotation, or lease payment.
What qualifies as actual expenses for a tax deduction?
The IRS lists a number of vehicle expenses that you can claim if you use your vehicle for work. You cannot deduct fines—such as speeding tickets—that you incur while driving for business. Legitimate expenses include:
- Depreciation
- Lease payments
- Registration fees
- License fees
- Gas
- Insurance
- Repairs
- Oil
- Garage rent
- Tires
- Tolls
- Parking fees
- Damages not covered by insurance payments
- Theft not covered by insurance payments
How to choose the best mileage deduction method
By logging miles and keeping records of your vehicle expenses, you can calculate which method will give you the biggest tax deduction at the end of the year. QuickBooks Self-Employed makes it easy. Automatically track your mileage and expenses year-round, and get estimates of your deductions from both methods. At tax season, choose which one is right for you.
By logging miles and keeping records of your vehicle expenses, you can calculate which method will give you the biggest tax deduction at the end of the year. QuickBooks Self-Employed makes it easy. Automatically track your mileage and expenses year-round, and get estimates of your deductions from both methods. At tax season, choose which one is right for you.
Points to remember
Points to remember
- Once you use the actual expenses method, you cannot revert back to the standard mileage rate in the future.
- In the first year you drive your vehicle (whether leased or owned) for business, you’ll need to use the standard mileage rate method.
Deduction method
comparison tool
Enter total miles driven for year
Enter percentage of miles driven for business and actual expenses
This tool is for exemplary purposes only and not to be used as tax guidance.
Mileage logs
Find on average 37% more deductions by logging miles automatically with QuickBooks Self-Employed.6
A mileage log is a written record of your trips that you submit with your business mileage deductions. It should show the date, destination, business reason for the trip, odometer readings, and total mileage. If you drive your vehicle for both personal and business use, you can only deduct the mileage that qualifies as business-related.
The IRS requires that you keep your mileage logs for three years—whether a paper-and-pencil mileage log you keep in your glove box or a digital mileage log stored on your phone.
As the taxpayer, it’s your responsibility to document all business mileage claimed, and to report it accurately when filing taxes. If you’re audited, the IRS will look for documentation to substantiate that mileage was in fact business-related. Without such documentation in the event of an audit, the IRS could disallow your deductions, costing you far more than the hassle of jotting down notes about your trip.
A mileage log is a written record of your trips that you submit with your business mileage deductions. It should show the date, destination, business reason for the trip, odometer readings, and total mileage. If you drive your vehicle for both personal and business use, you can only deduct the mileage that qualifies as business-related.
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The IRS requires that you keep your mileage logs for three years—whether a paper-and-pencil mileage log you keep in your glove box or a digital mileage log stored on your phone.
As the taxpayer, it’s your responsibility to document all business mileage claimed, and to report it accurately when filing taxes. If you’re audited, the IRS will look for documentation to substantiate that mileage was in fact business-related. Without such documentation in the event of an audit, the IRS could disallow your deductions, costing you far more than the hassle of jotting down notes about your trip.
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Find on average 37% more deductions by logging miles automatically with QuickBooks Self-Employed.6
Benefits of a digital mileage log
The QuickBooks Self-Employed app acts as a digital mileage log by tracking and categorizing the miles you drive for work. When tax time comes, you have your business mileage information properly documented. Self-employed workers find on average 37% more deductions by logging business miles.7
Benefits of a digital
mileage log
The QuickBooks Self-Employed app acts as a digital
mileage log by tracking and categorizing the miles you
drive for work. When tax time comes, you have your
business mileage information properly documented. Self-
employed workers find on average 37% more deductions
by logging business miles.7
Mileage reimbursement
QuickBooks Self-Employed customers on average put nearly 9% of their annual income back in their pocket.1
When you have an employer that requires you use your vehicle to conduct business—such as running errands, meeting with a client, or traveling to the airport for a business trip—you can track your miles and get reimbursed for those miles by your employer.
Employers can use the IRS standard mileage rate to reimburse their employees for business mileage. If your employer doesn’t reimburse for business mileage, or doesn’t reimburse the full amount determined by the IRS, then you can claim the amount of business mileage that was not reimbursed on your personal tax return.
Self-employed workers are their own employers and so there is no mileage reimbursement. Instead, you need to track and calculate your business mileage deduction to claim at tax time.
When you have an employer that requires you use your vehicle to conduct business—such as running errands, meeting with a client, or traveling to the airport for a business trip—you can track your miles and get reimbursed for those miles by your employer.
Employers can use the IRS standard mileage rate to reimburse their employees for business mileage. If your employer doesn’t reimburse for business mileage, or doesn’t reimburse the full amount determined by the IRS, then you can claim the amount of business mileage that was not reimbursed on your personal tax return.
Self-employed workers are their own employers and so there is no mileage reimbursement. Instead, you need to track and calculate your business mileage deduction to claim at tax time.
QuickBooks Self-Employed customers on average put nearly 9% of their annual income back in their pocket.1
Mileage tracker
With QuickBooks Self-Employed, you can track mileage automatically to get the biggest tax deduction you deserve. Without draining your phone’s battery, the app detects your starting and stopping locations when you’re driving to automatically track trips. Think of it as a hands-free digital mileage log.
With QuickBooks Self-Employed, you can track mileage automatically to get the biggest
tax deduction you deserve. Without draining your phone’s battery, the app detects your
starting and stopping locations when you’re driving to automatically track trips. Think of
it as a hands-free digital mileage log.
Swipe left for business miles
After you finish driving, you need to sort your business miles from personal. With QuickBooks Self-Employed, simply swipe right to categorize a trip as personal or swipe left to put it in a business mileage category.
Free Fillable Mileage Log Form
Using a mileage tracking app like QuickBooks Self- Employed ensures that your business mileage is recorded and organized so that it’s not lost or forgotten when you need it. At tax time, you have all the details necessary to claim your mileage deduction.
Swipe left for
business miles
After you finish driving, you need to sort your business
miles from personal. With QuickBooks Self-Employed,
simply swipe right to categorize a trip as personal or
swipe left to put it in a business mileage category.
Using a mileage tracking app like QuickBooks Self-
Employed ensures that your business mileage is
recorded and organized so that it’s not lost or forgotten
when you need it. At tax time, you have all the details
necessary to claim your mileage deduction.
Get started with QuickBooks Self-Employed mileage tracking
Download the QuickBooks Self-Employed mobile app from the App Store or Google Play Store. Once you sign in, open the app and tap Mileage at the bottom of your screen (iOS) or tap Mileage from the menu (Android). Switch the toggle to turn on automatic mileage tracking. Make sure you also enable location services in your device’s settings. And that’s it. When you start driving, QuickBooks Self-Employed starts tracking miles.
Get started with QuickBooks Self-Employed mileage tracking
Download the QuickBooks Self-Employed mobile app from the App Store or Google Play Store. Once you sign in, open the app and tap Mileage at the bottom of your screen (iOS) or tap Mileage from the menu (Android). Switch the toggle to turn on automatic mileage tracking. Make sure you also enable location services in your device’s settings. And that’s it. When you start driving, QuickBooks Self-Employed starts tracking miles.