As a self-employed driver, by now you know the importance of keeping a detailed mileage log and records of business expenses. It’s important not only in the case of an IRS audit, but also to maximize your refund for the year.
Specifically relating to mileage in 2017, the IRS allows you to deduct 53.5 cents per mile. The IRS also states, “the cost of the car and any improvements, the date you started using it for business, the mileage for each business use, and the total miles for the year” are needed to prove car-related business expenses.
So how can you keep track of your mileage, without much effort? This day and age, technology is quite literally at our fingertips on our phones and in app stores. Below are three excellent options, plus a bonus option, if you’re looking for a way to simplify your tracking.
Mile IQ is a great option for drivers. With this user-friendly app, you don’t have to manually log every trip and you can differentiate personal vs. business trips with one simple swipe. This keeps all your information stored in the cloud and offers a place for additional drive details like parking fees, tolls, and notes. There’s a free version of this app if you make less than 40 trips a month, but if this is your full time gig, you likely make more. You can choose from monthly ($5.99) or annual ($59.99). Also, want to make some extra cash? They have a referral program if you invite your other driver friends.
Trip Log has a lot of impressive features and they pride themselves on capturing all the necessary information required by the IRS. In addition to the mileage tracking, this app can keep track of all vehicle and business expenses, saving time and maximizing your tax deduction. The basic version for mobile is free but if you want to take advantage of the advanced features, there are options with fees. Learn more by visiting their pricing information here.
You may be familiar with QuickBooks for keeping track of business expenses, but did you know this includes mileage? QuickBooks reports that, “Users find an average of $7,393 in potential mileage deductions per year.” If you’re looking for an option that features mileage tracking and beyond, you might want to check out QuickBooks Self-Employed (starting at $5.00/month). Similar to some of the TripLog features, all of your expenses will be in one place when it comes time for tax season. Gotta love being organized, right?
BONUS TIP: If you don’t want to rely solely on technology, you can always go analog and purchase a trip diary, similar to this.
Do you have a favorite app or method that didn’t make this list? Share them with us on our Facebook Page! We’d love to hear from you.
If you’re interested in becoming a partner with DDI, please contact: 888-334-9675 ext. 0 or you can email us at firstname.lastname@example.org.
For more information or online registration, simply go to: https://ddiwork.com/drivers/sign-up/