Every year the IRS updates the Standard Mileage Rate Deduction and no matter what type of driving you do, if you drive for business purposes, moving or charitable causes - the 2019 IRS Standard Mileage Rate is there to help you easily deduct your mileage.
For those of you wondering why you'd use the standard mileage deduction rate instead of itemizing expenses for actual costs, you do have a choice. You can use one or the other, but you can't use both.The IRS has attempted to simplify the deduction process for everyone with the standard mileage deduction, however you're not required to use it - you do have another option.
What is the IRS 2018 Standard Mileage Rate?
Learn More about the 2019 Standard Mileage Rates:
Beginning on Jan. 1, 2018, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:[table id=7 /]
Expense Actual Costs: What Can I Deduct?
- Lease Payments or Interest On A Vehicle Loan
- Gasoline & Fuel Costs
- Oil & Maintenance
- Vehicle Repairs
- Parking Fees
- Most Other Vehicle & Driving Related Fees
- View the complete list here
If you choose to expense actual costs, that is a choice you'll have to make based on which method saves you more money. The IRS designed the standard mileage deduction to factor in overall costs of a vehicle, including maintenance, fuel, insurance and most of the other items you would deduct.As helpful as it is, the standard deduction may not be the right choice for you. That is something you'll have to determine for yourself and your particular needs.
What is the IRS Standard Mileage Rate?
The IRS allows for each mile driven by the taxpayer for business, charitable, medical or moving purposes to be added as a tax deduction known as the standard mileage rate. The standard mileage rate can be taken in lieu of actual expenses incurred when calculating deductible automobile expenses.
Learn more about the 2017 Standard Mileage Rate
Who Can Use The IRS Standard Mileage Rate Deduction?
- Anyone that drives for business purposes
- Uber, Lyft & other ridesharing services
- Real estate agents
In addition to business miles, there is also an exemption for moving and charity. What does this mean? It means that you can deduct the IRS-approved amount towards every mile you drive in relation to moving or charity.Do you drive for Meals on Wheels? Did you move or help someone move? The mileage you drive during these events is deductible at the standard rate.
How To Keep Track Of Your Mileage
Let's face it. Keeping receipts and accurate mileage logs is a onerous chore. Not many people want to do it every single time they get in the car for business. Look at real estate agents, or field sales reps. They're in their car every single day. Back-and-forth. Keeping every single paper receipt on file and writing down mileage in a paper mileage log is an absolute chore.Everlance was created to solve this problem!
Keeping track of business mileage and expenses takes seconds. Everlance automatically tracks every drive and calculates your deduction immediately. You can see after every drive just how much money you would save! It's really cool to see that in action.
Even better, though, is the fact that you don't really have to do anything. The app works silently in the background and all you have to do is classify the trip with a swipe. Was it a personal trip? Swipe left. Was it a business trip? Swipe right.It's that easy. You can also manually add older trips right in the app. If you were keeping logs on paper and want to transfer your old data to the app - you can do that.In addition you can also keep track of expenses and revenue.This means that you can track all of the costs associated with running your vehicle, whether personal or business just as easily as you can track miles.Have a receipt for a toll or a parking garage? Just take a snapshot and Everlance stores it automatically in the cloud. If you want, you'll even have the option to link your credit card or bank account directly to track expenses automatically!Whenever you're ready to do your taxes you can simply export the data into a file and upload it to your favorite tax software or give it to your accountant.Seriously, it's that simple when you use Everlance.
[table id=6 /]