Why You Should Track Your Mileage
Think tracking your mileage isn’t worth it?
Yeah, it can be annoying and tedious, but it’s definitely worth it! Mileage counts as a write-off when you file your annual tax return at the end of the year.
And for miles driven January 1 through June 30, 2022, the rate was 58.5 cents a mile. On July 1, that rate increased to 62.5 cents per mile driven through December 31, 2022!
If you drove one 20 mile round-trip, that’s an $11.70 write-off if the trip occurred the first half of the year and a $12.50 write-off if the trip occurred in the latter half of the year.
When tracking your miles, be sure to include…
✔ Starting/ending address
✔ Trip miles
✔ Purpose of trip
✔ Which vehicle you used (if drive multiple for business)
✔ Odometer readings for Jan. 1 and Dec. 31
You can write off miles driven to…
🌟Client meetings (their location, restaurant, etc.)
🌟Job sites
🌟The bank, office supply store,
🌟 Other business-related activities that required your presence.
❌ You cannot write off miles driven to your office or storefront, though. These are commuter miles, which the IRS considers personal mileage.
However, the IRS does ask for your commuter miles, so it’s helpful to track them separately.
❌❌ Also, you cannot take the standard mileage deduction if you are claiming your actual vehicle expenses.
I use Quickbooks Online to track my mileage. It’s easy and I appreciate how it keeps all of my tax-related numbers together.
Be sure to reach out to your certified public accountant (CPA) with questions!
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