Getting the right credits on your taxes takes a careful eye and accurate reporting. You don’t want anything to go unnoticed! And since driving can be such a big expense throughout the year, you’ll want to make sure you claim all of your credits for different types of trips. That’s where mileage tracking comes into play.
The miles you drive for business and certain cases of personal driving should to be considered on your taxes every year. When you track your miles, you can receive tax credits to help with the costs of your gas and normal wear and tear on your vehicle. This can make a big difference at the end of the year!
Personal and Business Mile Tracking 2019 Updates
While charitable driving rates are staying steady at 14 cents/mile, we’re seeing changes in the new year for your other types of mileage credits. The good news for mile trackers is that the 2019 mileage rates are going up. Personal trips like a family move or driving for a medical reason will clock in at 20 cents/mile. That’s a 2-cent increase over last year.
For businesses, the rate has jumped from 54.5 cents/mile for 2018 reporting to 58 cents for 2019. That’s why keeping tabs on your driving throughout the year can be a really valuable component of your business tax planning. Whether you drive a little or a lot, you don’t want to forget to monitor these deductions.
Your Different Mile Tracker Options for 2019
Of course, you actually have to track how much you drive. This isn’t a matter of just pulling a number out of thin air. Some people choose to document their miles on paper. They just record what the odometer reads at the start and end of their drives. This works for your business day miles, personal move, medical trip, or any driving you do for charitable work.
Another option for your mile tracker is to use an app on your smartphone. For example, we’re big fans of MileIQ. Installing this system on your phone makes it super-easy to record and save all of your driving miles. You can even classify different trips for “business” and “personal.” That way, you can claim all of your credits. And you won’t have to worry about losing your data, either—MileIQ stores all of your trip information in the cloud. You can also reference your mileage totals anytime from the app or your computer.
One of the best parts about MileIQ is that you can try it for free. If you don’t need to track more than 40 trips a month, this is a no-brainer. Give it try this year and see how much simpler it makes your recording. You can always upgrade your plan later if your needs change.
Ready to Claim Your Mileage Credits? We Can Help!
Your mileage credits aren’t too difficult to calculate. You just multiple the number of miles you drove by the rate per mile. So, if you drove 1,250 miles for business in 2018, you would receive a tax credit of $681.25. No one wants to overlook that in their tax planning!
If you’re ready to claim all your deductions for the 2018 or 2019 year, our team at NSO and Company can help. Give us a shout at (317) 588-3131 or drop us a line on our contact page. We love helping our clients claim the most credits possible on their taxes. If you’re overwhelmed by all the steps and want your tax planning to be done right, trust our team of experts. We’d be happy to hear from you.