Track mileage automatically

Name: QuickBooks Online
Rating: 4.7 (750 reviews)
Author: QuickBooks

Whether you’re driving part-time, full-time, or occasionally making deliveries, mileage can be one of the largest tax deductions for a small business.

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Mileage tracking is built into QuickBooks

Track payments to 1099 contractors throughout the year

Automatic GPS tracking

Easier than doing nothing. Just drive, and we’ll use your phone’s location to detect when you’re driving. Or, add a trip manually.

Swipe left for business miles

Easily categorize individual trips as business or personal to accurately rack up potential tax deductions.

Track payments to contractors for year-end 1099 forms

Detailed mileage reports

See the breakdown of miles and potential deductions. Plus, it’s easy to share when you need to.

Bring your miles with you

As your business grows, you can automatically transfer your current mileage from QuickBooks Self-Employed to QuickBooks Online.

Flexible QuickBooks Online plans for your business

Important offers, pricing details & disclaimers

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Keep up with standard mileage rates

Every year, the IRS publishes the standard mileage rates for calculating mileage deductions.⁴

Mileage rate 2020

The 2020 rate is 57.5 cents per business mile. Simply multiply the total business miles you drove last year by the standard mileage rate. Then, claim that number on your tax return as your business mileage tax deduction.

Previous standard mileage rates

Compare rates that the IRS published over the past few years.5

2019: 58 cents per mile(For 2019 taxes filed by July 15, 2020)

2018: 54.5 cents per mile

2017: 53.5 cents per mile

2016: 54 cents per mile

How to calculate your mileage deduction

There are two ways to calculate your business mileage deduction — the standard mileage method and the actual expense method. You won’t be able to take both deductions, so choose the method that best fits your work.

Standard mileage method

Use the standard mileage method to calculate the amount of business mileage you can claim on your tax return. Just multiply your total business miles for the year by the standard mileage rate.

See all mileage rates

Standard deduction calculator

Enter business miles driven for year

Calculate your deduction

Standard deduction

This tool is only an example and not to be used as tax guidance.

Actual expenses method

The actual expenses method is more complex, but it may result in a bigger tax deduction for you. With this method, you can deduct vehicle-related costs if at least some of your driving is for business purposes.

How to choose the best mileage deduction method

By logging miles and keeping records of your vehicle expenses, you can calculate which method will give you the biggest tax deduction at the end of the year. QuickBooks Online makes it easy to automatically track your mileage and expenses year-round, and get estimates of your standard deduction.

Deduction method comparison tool

Enter total miles driven for year

Enter percentage of miles driven for business and actual expenses

Calculate your deduction

Standard deduction

actual method

This tool is only an example and not to be used as tax guidance.

Points to remember

Once you use the actual expenses method, you cannot revert back to the standard mileage rate in the future.
In the first year you drive your vehicle (whether leasedor owned) for business, you’ll need to use the standard mileage rate method.

Make every mile count

Track mileage to get the biggest tax deduction you deserve.Think of the mileage tracking app as a hands-free digital mileage log.

Mileage logs

A mileage log is a written record of your trips that you submit with your business mileage deductions.The IRS requires that you keep your mileage logs for three years—whether a paper-and-pencil mileage log you keep in your glove box or a digital mileage log stored on your phone.

Get started with QuickBooks mileage tracking

The QuickBooks mobile app acts as a digital mileage log by tracking and categorizing the miles you drive for work.

Using a mileage tracker app like QuickBooks Online ensures that your business mileage is recorded in real time and organized so that it’s not lost or forgotten when you need it. At tax time, you have all the details necessary to claim your mileage deduction.

Download the QuickBooks mobile app from the Apple App Store or Google Play Store.

Get started Get started

Get started using the app to track miles

It’s easy to get started tracking mileage. First, get the QuickBooks mobile app in the App Store or from Google Play. Then, log into the app using your QuickBooks login information. Next, open the app and tap the Miles tab at the bottom of your screen (iOS) or tap Miles from the menu (Android). Switch the toggle to turn on automatic mileage tracking. Make sure you also enable location services in your device’s settings. That’s it. When you start driving, we’ll start tracking miles.

Business miles vs personal miles

After you finish driving (whether you are a rideshare driver or you are self-employed and going to a client meeting), you need to identify business miles versus miles used for a personal errand. Keeping an accurate mileage log ensures that miles for business trips are tracked for tax time. Swipe right on the trip to categorize it as a personal trip, and swipe left to put it in a business mileage category.

Claim the mileage tax deduction

The self-employed can take advantage of many business-related tax deductions, including the mileage deduction. And for many, such as rideshare drivers and delivery service providers, mileage is one of the largest tax deductions they claim. With the QuickBooks Online app, you can track mileage automatically to get the biggest tax deduction you deserve.

IRS compliance for the self-employed and independent contractors

Whether you’re driving part-time for Uber, full-time as a truck driver, or occasionally making deliveries on weekends, it’s important to track mileage. Stay IRS compliant by using a mileage log that includes the date, the destination, the reason for the trip, odometer readings, and total mileage. The QuickBooks Online app includes a digital mileage log and tracks these items for you, automatically.

Frequently asked questions

How do I add a manual trip?

Can I export and send it to my accountant?

Which product includes mileage tracking?

How do I transfer mileage from QuickBooks Self-Employed to QuickBooks Online?

Offer terms*

Discount offer: Discount applied to the monthly price for the QuickBooks Products is for the first 3 months of service, starting from the date of enrollment, followed by the then-current monthly list price.To be eligible for this offer you must be a new QuickBooks customer and sign up for the monthly plan using the “Buy Now” option.

Offer terms: Your account will automatically be charged on a monthly basis until you cancel. If you add or remove services, your service fees will be adjusted accordingly. Sales tax may be applied where applicable. This offer can’t be combined with any other QuickBooks offers. Offer only available for a limited time and to new QuickBooks customers. Terms, conditions, pricing, special features, and service and support options subject to change without notice.

Cancellation terms: To cancel your QuickBooks Products subscription at any time go to Account & Settings in QuickBooks and select “Cancel.” Your QuickBooks Online cancellation will become effective at the end of the monthly billing period. The QuickBooks Online Payroll subscription will terminate immediately upon cancellation.You will not receive a pro-rated refund; your access and subscription benefits will continue for the remainder of the billing period.

Features**

IRS standard mileage rates: IRS standard mileage rates for calculating mileage deductions

IRS standard mileage method: IRS standard mileage method for business use of car

QuickBooks online services: Online services vary by participating financial institutions or other parties and may be subject to application approval, additional terms, conditions, and fees.

Collaborate with your accountant: You can connect up to the following for each product: 1 billable user and 2 accounting firms for QuickBooks Online Simple Start, 3 billable users and 2 accounting firms for QuickBooks Online Essentials, 5 billable users and 2 accounting firms for QuickBooks Online Plus, 25 billable users and 3 accounting firms for QuickBooks Online Advanced. Accounting firms must connect using QuickBooks Online Accountant.

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Automated tax payments and filings: Automated tax payments and filing available only for state and federal taxes. Enrollment in e-services is required. Local taxes require the user to print the forms and upload it to the necessary local sites. QuickBooks Online Payroll Core does not offer local tax payments and filings. Automatic filings for state new hire paperwork available in QuickBooks Online Payroll Premium and Elite only.

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Product information**

QuickBooks Online and QuickBooks Self-Employed system requirements: QuickBooks Online requires a persistent internet connection (a high-speed connection is recommended) and computer with a supported Internet browser or a mobile phone with a supported operating system (see System Requirements) and an Internet connection. Network fees may apply.

QuickBook Online and QuickBooks Self-Employed mobile apps: The QuickBooks Online mobile and QuickBooks Self-Employed mobile companion apps work with iPhone, iPad, and Android phones and tablets. Devices sold separately; data plan required. Not all features are available on the mobile apps and mobile browser. QuickBooks Online mobile access is included with your QuickBooks Online subscription at no additional cost. Data access is subject to cellular/internet provider network availability and occasional downtime due to system and server maintenance and events beyond your control. Product registration required.

QuickBooks Online Advanced usage limits: QuickBooks Online Advanced includes unlimited Chart of Account entry. Simple Start, Essentials and Plus allow up to 250 accounts. QuickBooks Online Advanced includes unlimited Tracked Classes and Locations. QuickBooks Plus includes up to 40 combined tracked classes and tracked locations. Tracked Classes and Locations are not available in Simple Start and Essentials.

QuickBooks app integration: Online services vary by participating financial institutions or other parties and may be subject to application approval, additional terms, conditions, and fees. For more information see apps.com.

Cancellation policy: There’s no contract or commitment. You’re free to switch plans or cancel any time.

Customer support: For hours of support and how to contact support, click here.

Claims#

1. Over 7 million small businesses use QuickBooks: Based on number of global QuickBooks subscribers as of Jan 2020.

2. 98% recommend QuickBooks claim: Based on survey of small businesses using QuickBooks Online in U.S. conducted September 2018.

Terms, conditions, pricing, special features, and service and support options subject to change without notice.

Track mileage automatically

Automatic GPS tracking

Swipe left for business miles

Detailed mileage reports

Bring your miles with you

Flexible QuickBooks Online plans for your business

Reduce errors and improve efficiency with automated workflows

Mileage rate 2020

Previous standard mileage rates

Standard mileage method

Standard deduction calculator

Actual expenses method

How to choose the best mileage deduction method

How to choose the best mileage deduction method

Points to remember

Mileage logs

Get started with QuickBooks mileage tracking

Get started using the app to track miles

Business miles vs personal miles

Claim the mileage tax deduction

IRS compliance for the self-employed and independent contractors