So if you drive 100 miles and earn $58.50, you can subtract that $58.50 from your total income to get your tax refund.
Mileage tracking can be a pain, but there are some great apps out there to make it easier. We’ve compiled a list of some of the best mileage-tracking apps to help you keep track of your progress. ..
Stride Tax (Download)
Stride makes tracking mileage literally a one-touch process. Open the app and tap “Track my Miles.” Tap the button again when your trip ends. It automatically calculates the distance traveled, provides a map, and tells you how much you saved based on current tax law.
You can include up to two different jobs, too—one specific one, and one “Other.” If you forget to start your mileage tracking, you can enter it manually later. You can also enter other expenses and even scan receipts to track all of your business-related spending.
Stride is a free app that lets you connect your bank account to the app so you can automatically record business expenses. The best part? Stride is totally free. The app is incredibly accurate with mileages, too, so you don’t have to worry about a margin of error.
Each week, Stride will send you an email with a total of your deductions for that week. And at the end of the year, just follow the steps and let Stride produce an IRS-ready form for you. Stride can automatically import into various tax software, including H&R Block online. ..
MileIQ (Download)
MileIQ is a powerful tool that can be used on a variety of platforms, including Microsoft platforms. This makes it easy to access your account and keep up with your data.
MileIQ lets you print reports, classify any of your drives, and customize every detail of every mile driven. The downside is that MileIQ isn’t free—it’s $5.99 per month or $59.99 per year. There is a free version, but it only records 40 drives per month. On the flip side, if you have a Microsoft Office 365 Business subscription, MileIQ is included free.
MileIQ is a personal transportation app that records your mileage and sends you push notifications to remind you to classify potential deductions.
Everlance (Download)
Everlance is a paid app that offers users free trips per month and then charges an annual fee for more trips. ..
The good news is that you can try the premium features for seven days to see if they’re worth the cost. And, as the company points out, after one big trip the cost pays for itself. ..
Everlance lets you add mileage manually, list non-mileage expenses, and even add in revenue that you might not receive a 1099 for. One interesting feature is that you can choose two locations and find out the value between those two points.
If you link your bank to your Everlance account, you can monitor your transactions and classify them by swiping right for work and left for personal. At the end of the year, Everlance will compile an IRS compliant report that makes it easy to report your yearly mileage.
But what if you could use a computer to track your miles? What if you could see where you’ve been and how far you’ve traveled in real time? That would be amazing!
The app allows you to track your expenses more accurately and get more detailed reports than just what your odometer tells you. Additionally, the added benefits of expense tracking and automated reports are also a major plus.
If you decide to use an app like QuickBooks, be sure to consider the cost of using it each year. This is a tax deduction that can help you save money on your taxes.
The IRS is looking for evidence that you drove the miles you claimed you drove. Use one of these apps to make sure you’re logging your miles properly—and that you can provide proof you did, in fact, drive those miles. You know, just in case the IRS needs verification.