How To Log Miles For Taxes In 2023

The distance a vehicle travels for work, charity, medical, or relocation purposes is recorded in a mileage log. Anyone who wants to log their mileage for tax or reimbursement purposes may find it helpful. Let’s see what options there are to keep a mileage log in 2023 and which one seems to be the most effective.

Who needs to keep a mileage log?

• Self-employed people: People who work for themselves, such as independent contractors, small company owners, and freelancers, frequently utilize their personal automobiles for work-related activities including client meetings, trips to project sites, and delivery runs. They can track their company miles for tax purposes and perhaps deduct it from their taxes by keeping a mileage record.
• Employees that drive their own car to work: Some workers may use their own automobiles for work-related purposes, such as sales agents and delivery personnel. In some circumstances, their company could pay for their mileage. To precisely record the miles travelled in these circumstances and guarantee that they are fully compensated, maintaining a mileage log is crucial.
• Volunteers for charities: People who give their time to charities may be allowed to deduct their travel expenses from their taxes. They can track the miles they travel for volunteer work and perhaps submit a tax credit by keeping a mileage record.
• Medical professions: If they use their own automobiles to get to and from doctor’s visits or hospitals, medical professionals (such as physicians and nurses) may be allowed to deduct their mileage costs. They can monitor their deductible kilometers with the use of a distance record.

As you can see, anyone who drives their own car for work, charity, medical care, or relocation may find it helpful to keep a mileage log to document their travel for tax or reimbursement purposes.

What should I include in my mileage log?

• Date: Note the day when the excursion took place.
• Starting location: Record the trip’s beginning point, including the city, state, and, if appropriate, the address.
• Destination: Write down where you’re going, including the country, state, and, if applicable, the address.
• Record the trip’s purpose, such as a customer meeting or delivery, in this section.
• Odometer readings: Note the odometer readings for the trip’s beginning and finishing points, or the total amount of miles driven.
• Determine the total number of miles traveled throughout the journey.
• Indicate the proportion of the total miles that were used for business if the journey was made for professional reasons.
• Reimbursement: Include the amount of the reimbursement you are requesting if the travel was for business purposes.
• Include the make, model, and year of the car that will be utilized for the journey.

Your mileage journal will be comprehensive and in compliance with IRS rules if this information is kept up to date and correct.

What is the most effective way to log my miles for taxes?

Your tastes and demands will determine how you’ll log miles for taxes. Here are some possibilities:

• Paper notebook: If you prefer a low-tech method, logging your mileage in a paper logbook can be successful. Simply maintain a notebook in your car and manually record your journey information.
• Spreadsheet: A well-organized and simple-to-read record of your travels may be found using a spreadsheet tool like Microsoft Excel or Google Sheets. To compute the total miles and the proportion of business use, you can design a template with columns for the trip’s specifics.
• Apps for tracking miles like MileageWise are readily available for both iOS and Android smartphones. These applications automatically track your miles and compile a thorough trip log using the GPS on your phone.
• GPS tracking systems can give precise and automated tracking if you need to keep track of your distance for work. These gadgets, which you can install in your car, track your travels and generate thorough data.

Whichever approach you go with, it’s crucial to make sure your mileage log is correct, comprehensive, and compatible with IRS guidelines. Taking that fact into consideration, mileage tracker apps have a good chance to win in this competition by being super quick, automatic, and IRS-Proof – if the right app is selected.

MileageWise’s mileage tracker app & supporting web dashboard

MileageWise may be a great tool for tracking your mileage thanks to its 3+1 automatic monitoring modes, trip purpose auto-classification, and concierge service. With this service, they may start again or even correct your mileage records.

Missing some journeys? Do not fret. MileageWise’s AI-powered AdWise features encourage trips based on previously visited locations in order to fill in every gap in your mileage report. Your mileage record is examined and fixed for 70 different logical inconsistencies by the built-in IRS auditor function, making it 100% IRS-Proof. This function stops you from printing your mileage log before making the required adjustments.

You may test out MileageWise for a full 14 days at no cost to see whether you like it.