Are you using your car for business purposes?
Whether you’re Self-Employed or a Small Business Owner, you’ll need to make a Mileage Log that is IRS-Proof in order to claim a Mileage Tax Deduction for your Business Miles.
In this article, we collected what to keep in mind if you’re looking to claim a Mileage Tax Deduction in 2022.
Let’s start with the obligation that the Internal Revenue Service has towards businesses that claim for tax deductions.
IRS MILEAGE LOG REQUIREMENTS 2022:
- The total Mileage you drove in the Tax Year for Business, Commuting, and Personal Driving (other than Commuting)
- The First and the Last Odometer reading of the year
- The Dates of your Business trips
- The Purpose of your Trips
- The Address of the Clients you’ve visited
What does the IRS ask for during an audit?
Keeping track of your Trips might sound like an easy task – in theory.
In practice, the IRS may ask for ALL of your Business Data: Business Expense reports, Odometer readings recorded at the Mechanic, Traffic cameras, Tolls, Fees, etc.
If these documents do not match with your Mileage logs, an IRS Fine can be 50% of your Yearly Income!
How to track mileage in 2022?
Some people track their mileages on paper, which is an extremely time- and energy-consuming method, which can take up several hours of your precious time every month, or even every week. If you’d like to stick to this option, MileageWise has a Printable Mileage Log Template for you.
Nonetheless, Traditional Mileage Logs on paper or even on Excel or Google Sheets / Tracker Apps / Templates / Samples will not pass even the simplest check-ups in your Mileage Log, such as checking whether your odometer readings are realistic or not.
What Is The Best Way For Mileage Logging Then?
You can always decide:
- Keep your log on Paper and pay with your Time (for beginners only!)
- Keep your log with Free or Cheap software and pay the IRS Fine.
- Keep your log with MileageWise and save half of your Income. Plus, using MileageWise, creating an IRS-Proof Mileage Log is only 7 Minutes a Month.
- If 7 Minutes a Month is still too much time for you, Outsource the task to MileageWise’s Mileage Log Experts.
PRO TIP: Don’t forget, your MileageWise Subscription is Tax deductible as a Business Expense!
MILEAGE REIMBURSEMENT 2022
If you (or your employee) drive a private vehicle for business miles (in some cases besides personal usage), you can also apply for Tax Deduction after the miles driven. Use MileageWise’s Company Mileage Reimbursement Calculator to see how much you can deduct in a Tax Year.
Whether you choose Standard Mileage Rate or Actual Expenses Method, MileageWise ensures that your 100% IRS-Proof Mileage Log meets Every Expectation.
GO WITH THE WISEST SOLUTION
MileageWise Checks & Corrects 70 Logical Conflicts before printing to ensure your Mileage logs are IRS-Proof! It takes only 7 Minutes to complete 1 month’s worth of Mileage Logs resulting in an average of $12,000 in Tax Deduction, without struggling with an expense tracker or any hardware.
MileageWise also has an app for both iOS and Android phones so that you can record your trips on the go.