A tax deduction is something every self-employed businessman and small business is after – every dollar that can reduce your operating costs counts.
One of the easiest ways to receive a tax deduction is through mileage reimbursement – if you’re driving to or from clients, the fuel used can be considered business expenses.
To receive reimbursement, however, you need to keep a proper mileage log. With the right mileage tracker app, you can do that automatically – without having to keep an Excel sheet or a hand-written copy of your log.
What can a mileage tracker do?
With the right mileage tracker app, you can automatically collect driven miles from each business trip of each of your vehicles and drivers. These apps can be installed on Android and Apple devices, and even used right from your browser.
Each one offers a different set of features, but they’re all focused around a single theme – helping you create an efficient mileage log and keep track of your business trips.
There are plenty of simple mileage tracker apps available on Google Play and App Store, including popular apps like MileIQ and TripLog, but also promising newcomers like MileageWise.
What features should you look for?
The features you should specifically look for in a free mileage tracker app depend on your current business needs. Some of the best mileage tracker apps can help you if you have lost track of your past trips and need a way to recover the data.
MileageWise offers a Retrospective Mileage Log Recovery, with an advanced AI-driven AdWise algorithm that will help you recover your lost miles easily.
When looking for a mileage tracker to use, always carefully check out the pricing options of the app you’re going to use. While most apps only offer a limited free version trial, MileageWise offers a 14-day full version trial with all the features available from the start.
Create IRS-compliant mileage logs with MileageWise
In most cases, keeping a simple mileage log in an Excel format won’t be good enough in case of an IRS audit.
These documents might be enough for you and will allow you to file a precise tax statement, but the IRS has very specific requirements on how the mileage log should be kept.
MileageWise features a Built-In IRS Auditor, which automatically checks and corrects 70 logical conflicts in your mileage log that are the most common causes of entrepreneurs getting fined by the IRS.
What’s more, MileageWise offers a lot of built-in help and educational materials, including a sizable collection of articles that will help you keep a better track of your miles and increase tax refunds.
When properly used, MileageWise can give you a yearly average possible business mileage deduction of $12,000. The app offers 3 automatic mileage tracking modes (Bluetooth, Plug’N’Go, and vehicle movement tracking) in addition to manual tracking.
If you’re in need of additional help, MileageWise also provides an additional feature – consulting with an expert to build your mileage log and make sure it’s up to all the required standards.