It’s amazing how the little trips add up. With the 2013 IRS business mileage rate up to 56.5¢/mile, just a 2 mile trip adds over a dollar to your deduction. For charity, it’s just over 7 miles per dollar. With MileBug, tracking these trips is easier, and larger deductions possible.
Personally, I’ve had several years with $1000+ mileage deductions while using MileBug, and will have another when I do my taxes for 2012. If you drive just a couple times each week for business, you could very well have a 4-figure deduction, too, if you actually tracked all those trips.
The 2013 IRS mileage rate for business is up to 56.5¢/mile, charity remains at 14¢, and medical/moving is up to 24¢. So to get a $1000 deduction, you only need:
Business: 1770 miles (or 34.1/week on avg.)
Charity: 7143 miles (or 137.4/week avg)
Medical/Moving: 4167 (or 80.2/week avg.)
Or any combinations of the above! So let’s all commit to tracking even the short trips, and get that much needed tax deduction. Especially helpful with the fiscal cliff plan increasing social security taxes.