IRS Mileage Rate Tax Deduction
We are all familiar with the prices at the pump. That is why it is more important than ever to seek every deduction possible when calculating your driving expenses that relate to your work or business. It can be a time consuming process but tracking and deducting your driving expenses can prove to be a great deduction on your tax return.
This year you will be able to claim 50 cents for every mile driven for a business purpose. It's a good idea to keep a spiral bound notebook hooked to a clipboard and keep it right in your vehicle. If you use this method, you will always be prepared to accurately record your mileage and if you should ever get audited, you will have the information about miles traveled that they will be looking for.
You will need to have proof of your driving expenses. If you take the standard deduction you will need to track miles and if you choose to deduct actual vehicle expenses then you will also need to track other items such as gas, repairs, insurance, and registration. It is very important to keep these receipts and documents organized so that you are not scrambling at the end of the year.
Here are some tips to maximize your car IRS mileage deduction:
Learn what is allowable as a business mileage expense - The IRS offers publication 463 that gives you many examples to look over.
Stay organized with receipts and tracking mileage - If you are audited this information is necessary and can save your deductions.
Fill up when gas prices are lower - Since the deduction rate doesn’t change, this will help you maximize your deduction.
Seek Assistance - This can be a lengthy process, we suggest using online tax preparation software such as TurboTax online.
Please visit TurboTax Online with all of your IRS mileage deduction questions. TurboTax online offers free tax calculators and deduction maximizers to help you get the most deductions possible.
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