Keeping a bird’s eye view on the mileage of your vehicle can result in huge savings when you file a tax return on your total mileage. It is imperative that you keep an up to date record of all the relevant documents to ensure an easy and less time-consuming process when it comes time to handle your taxes. Whether you do your taxes yourself or turn them over to an accountant, you’ll still need to keep track of the miles you travelled all year long.
Below you can view some common mileage logs for taxes that are subject to deductions and how you can use these deductions to your advantage. It is also important that you remember that a normal IRS mileage rate is applicable on all of the below mentioned mileage deductions. This factor is good news as it can allow you to claim money in parking fees and tolls on either one or all the mileage deductions:
Traveling to Find Employment
The mileage expenses you have incurred for finding a job or seeking employment are also subject to a tax reduction and the basic mileage rate is 56.5 cents per mile.
Miles Traveled for Business Purposes
Mileage costs incurred for business reasons, if you own and operate a business or if you have been asked to travel on behalf of the company you work for, are also subject to taxation. Further, if you are employed at two places, you can benefit from your mileage log for taxes by deducting your total traveling cost, which is the cost of your travels to both workplaces. The nominal rate of taxation is 56.5 cents per mile.
Your Costs due to Medical Reasons
Did you know that you have the right to claim a medical deduction of 24 cents per mile you have driven for the purpose of medical and or dental care or for an emergency? This deduction also takes into account all the trips you have made to the pharmacy to get medicine and drugs or prescriptions, visiting your dentist, your therapist, etc.
For Charitable Causes
By submitting your mileage taxes, you can also file for a charitable contribution of 14 cents per mile driven if you have provided services for a charitable foundation.
The Money Spent Moving
Adherence to certain policies can allow you to deduct 24 cents per each mile traveled when you are moving from one place to another.
Record Keeping Requirements
It is imperative that you maintain a detailed record of your mileage log for taxes. The records should include a list of elements, which include your total miles traveled for the year and the mileage for each specific deductible. You’ll also want to keep track of the specifics, such as the addresses, times, and dates.
As you can see, there is a substantial list of benefits that you will be fully entitled to once you submit your mileage log for taxes. The key is to keep a detailed and up to date record of your mileage.