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Everyone should want to save money on their income taxes, right? Tracking business travel miles is one of those ways. For those who qualify for a mileage deduction, a mile tracking app can be a simple and reliable solution to get the deduction credit that you deserve.


Who Qualifies for a Mileage Deduction?


Formerly, most businesses and many individual taxpayers were able to deduct business miles from their income tax filings. However, the Tax Cuts and Jobs Act of 2017 (TCJA) changed the rules. Now, only the following can claim this deduction: Small business owners. Self-employed workers including independent contractors like drivers for rideshare services. Certain types of employees including armed forces reservists, qualified performing artists, and fee-based government officials. And individuals traveling for medical appointments or volunteer work.


The Basics of Mileage Deductions


There are four types of miles that qualify for a deduction. Each of these can be easily recorded by a mile tracking app.


  • First, miles that are based on the business use of a vehicle including traveling to job sites, driving to meetings, making deliveries, attending business conferences, and business errands.
  • Second, moving miles may be claimed by members of the armed forces when they relocate due to a change of duty assignment.
  • Third, medical miles can be claimed for any medical-related mileage including driving yourself or family members to doctor’s appointments, medical treatments, and prescription pickups.
  • And fourth, mileage can be deducted for driving to charity events and doing work on behalf of a charitable organization.

With all these variables, it can be much easier to use a mile tracking app than to keep scraps of notes, and much more reliable than trying to keep multiple details in one’s memory.


Keeping Good Records is a Must


Government taxing entities don’t accept “I guess it was this much” statements regarding deductions. Thus, a mile tracking app can remove any guesswork by recording mileage accurately each time you travel. The data will be on your smartphone, available to be reviewed or revised at your convenience. Most apps will allow you to classify a trip and even add tolls and parking costs. Plus, they will provide an IRS-compliant report.


A good mile tracking app gives you peace of mind knowing that you don’t have to remember or manually record the details of your trips, especially when you are in a hurry. No more last-minute rushing to gather the information about trips taken along with their purposes, dates, and miles. And no more “did I get it all right” anguish at tax time.


By recording mileage with a mileage tracking app, your business time can be more productive and more efficiently used. You can use your time driving the business instead of making detailed notations.


What Are Some Examples of Good Mile Tracking Apps?


There are many options to choose from ranging from free and basic options to more comprehensive paid services. Some, like Everlance, offer a free version or a more thorough paid version. Other good mile tracking app options include MileIQ, Triplog, Hurdlr, MileLogger, and SherpaShare. It is important to choose one that fits your needs. But then, be sure to use it to gain the tax deduction befits that you deserve.


Get Expert Tax, Accounting, and Financial Assistance


Contact Doerhoff & Associates, CPA, based in Jefferson City, MO for professional accounting, financial assistance, and tax preparation that you can count on. Doerhoff & Associates has one goal in mind, to provide comprehensive business accounting services designed specifically for your success.