How to Deduct Mileage on Taxes: The Self-Employed Edition
If you are a self-employed independent contractor, you may be considering a write off on taxes for expenses you incurred on your vehicles.
This article is about the mileage tax deduction and how to write off business expenses on your taxes.
Self-employed people and mileage tax deduction
Mileage is a big expense for the self-employed. This is because they must pay taxes on their income, and they must also pay federal and state taxes on their mileage expenses.
Since June 9, 2022, taxpayers who are self-employed are able to claim a 62.5-cent deduction per business mile driven.
They are able to claim taxes for business expenses like running errands for supplies, traveling between primary and secondary work sites, and conducting meetings with clients.
There are no threshold requirements when it comes to calculating mileage for the self-employed. They can even deduct the purchase of a vehicle when they use it for business for at least 50% of the time.
“What car-related expenses can I write off as a self-employed?”
Self-employment tax deductions or write-offs can be based on different types of car-related expenses.
Self-employed mileage deduction criteria can include:
- Registration fees
- Lease payments
- Car depreciation
- Repairs and tune-ups
- Gas and oil
Mileage Tax Deduction for Self-Employed
This deduction can be a significant tax saving for self-employed individuals, as it can reduce the amount of taxes owed by hundreds or even thousands of dollars.
In order to qualify for these common tax deductions, self-employed individuals must keep detailed records of their business mileage as well as any other expenses related to the operation of their vehicle.
The most important thing to remember is that the self-employed must keep a mileage log to write off a car for business. This log must show the total number of miles driven for business purposes, and it must be filed with the IRS. The best way to do this is to use a mileage tracker app.
MileageWise for mileage tracking
One of the best mileage tracker apps is MileageWise. This app has unique features proven to keep track of mileage logs.
- Produces a mileage log that is 100% IRS-approved to track mileage for multiple vehicle drivers in your business.
- Track your mileage for different types of vehicles, and you can try it out with a 14-day trial over unlimited trips.
- MileageWise offers you a VIP service to prepare your mileage logs for you. This company knows what expenses are tax-deductible even when you have several businesses with several cars making trips to your different work sites.
MileageWise is one of the best mileage tracker apps to keep track of your mileage and your taxes. It is one of the most competitively priced apps on the market and comes with many features that make it the best way to keep track of your business expenses.
If you are self-employed, you should definitely consider using MileageWise to track your mileage.