August 5, 2020
Mileage tracking for tax deductions

Working remotely during the pandemic? You'll still have tax-deductible mileage if you run out to pick up supplies.

The miles you put on your vehicle for business purposes are tax deductible.

If you are self-employed — or a W2 worker, in some cases — you may take these deductions. But the IRS doesn’t want just any information on your mileage documentation. It’s best to consult with a qualified accountant, of course, for your particular situation.

If you’re eligible for these deductions, here is what to track to get you on the road to an audit-free tax-filing journey.

Off to work we go

So claiming mileage expenses means we can all deduct any work-related trip?

Not so fast.

Many tax filers are surprised to learn that you can’t actually deduct your morning commute — your actual ride to work — or your ride home. You can deduct use of your car to pick up work-related supplies, rides between offices, trips to meet clients and airport runs to catch a plane for a work-related flight.

So what exactly does the IRS need on your mileage log?

·      The date of the trip

·      Number of miles to your destination and back

·      Where you went for the business-related purpose

·      Description of the business-related purpose

It may seem difficult to remember to log these details every time you run to pick up toner cartridges, or meet a prospective client for coffee. But fortunately, there are smartphone apps out there to guide you through logging in the pertinent details — it’s easier than ever. Every little trip adds up; it’s important to track these expenses, which could potentially lead to real-money deductions for you and your business.

More questions on deducting mileage expenses for work? Contact Kerby Accounting & Business Solutions today.

Susan Shalhoub

Read more
You might also be interested in these
Accounting
Job costing a step to true profitability

Kari Kerby

It's like knowing where the goal post is, so you can strategize how to get there.
Tax Preparation
Don’t fear COVID early-withdrawal tax penalties

Susan Shalhoub

With retirement savings, The CARES Act allows for exceptions before the 10% kicks in. (It's been an exceptional year, after all).