If you want to deduct mileage expenses on your taxes, you need to keep track of your mileage the right way. This means using a mileage log of some kind. The IRS states that mileage records must consist of:
- Mileage driven
- Dates of business trips
- Location driven
Without these four details recorded for each trip driven, the IRS is likely to throw out your claim for mileage deduction. They could even charge you fees and interest if you get audited. This is the biggest problem taxpayers face when claiming the deduction. They neglect to keep records throughout the year or the records they do keep are incomplete. Most people aren’t even aware of the strict requirements regarding mileage deductions.
You can print out a form like this and keep it in your glove box, remembering to write in the details on each trip.
Or, to make it easy, you can use an online tool to help you log your mileage. Timesheets.com is a helpful tool to track attendance along with mileage to help log your reimbursable expenses. Everything is easily accessible on a timesheet so you can create reports within seconds for payroll.
Ready to try Timesheets.com? Start a free trial today!