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Free template for expense report3/31/2024 This is a great deduction to take advantage of if you drive for work. So if you have 5,000 in business mileage, your deduction would be $2,925. It’s designed to reflect the average costs of car-related expenses, such as: This rate is adjusted for inflation each year. Our free spreadsheet is a great way to track your mileage deduction, but how does it actually work? The mileage deduction is calculated by multiplying your yearly business miles by the IRS’s standard mileage rate. If you use the Keeper mileage log for both your work and personal trips, the total mileage listed at the top should be accurate. Most people know to track their business mileage, but not everyone tracks their total mileage. Your total mileage (including commuting) for the year.When reporting your auto details, you’ll have to list two things: Your odometer can be helpful for figuring out your total mileage. However, when it comes to claiming your mileage deduction on your tax return, your odometer can come in handy. As long as you’re able to document the other details, you don’t need to consult your odometer at all. Do I need to provide odometer miles on my log?Ī common misconception is that the IRS requires your odometer readings on the log. ![]() That’s why we made sure to include all of those on the Keeper log. If you fail to adequately supply any of these things, your tax deduction would be disallowed. If your mileage deduction is ever challenged, this is what the IRS is going to expect to see included on your log: (We’ll talk some more about odometer readings down below!) What does the IRS require from your mileage log? The “Total Mileage” box will update accordingly. If you prefer to use your odometer readings for your total miles, you can include those in the top right corner of the Dashboard. ![]() Your cumulative business and total mileage will display as well. We calculate this automatically for you, using the latest mileage rate provided by the IRS. The total tax deduction for the year will show up in the green box shown below. For instance, if it’s a routine trip but you had to stop for gas, leave a note to explain why the trip was slightly longer.Īs you begin to fill out the log, your Dashboard will automatically update. Notes: Use this column to jot down any necessary information relating to the trip.The running total is listed under the Dashboard. Deduction: This column shows how much you can write-off per trip.However, “Personal” trips will be included in the “Total Mileage” shown at the top of your Mileage Dashboard. The mileage deduction won’t calculate unless “Business” is selected. Business or Personal: Use the dropdown menu to specify the nature of the trip.This will be used to calculate your deduction. Miles: Enter the exact distance you drove.You can enter the exact address, or use a close approximation. Start and End: The beginning and ending addresses allow the IRS to verify the mileage if required.This is an IRS requirement, so don’t forget to jot it down! For example, if you’re going to a meeting, it could be the name of the client you’re meeting with. Trip Name: Use this to specify the purpose of your trip.Let’s take a look at each column, one at a time: There are a few sample lines to show you how it works. ![]() ![]() The bottom half of the log gives you plenty of room to record all your trip information.
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