Do you record an actual expense when taking the "standard mileage deduction"?

Hi there, @MegaMatt3.

Thank you for the detailed information. I can share with you some insights about mileage tracking in QuickBooks Self-Employed.

Usually, you can track both miles and vehicle expenses in QuickBooks. At the end of the year, you can decide which method you want to use for your business mileage. You can pick one deduction method to stick with. If you're uncertain, you can consult with TurboTax or your tax professional to help you decide which method is best for you and your business.

The standard mileage method is used if you own or lease your vehicle. Instead of counting every single expense related to driving your vehicle, you can use the standard mileage method. With the actual expense method, the system calculates and deducts the amount you spent using your car for business. This includes gas, oil, repairs, tires, car insurance, registration fees, licenses, and depreciation (or lease payments).

For deeper dive into these methods, you can check out these articles:

• Standard Mileage vs. Actual Expenses: Getting the Biggest Tax Deduction
• Learn about standard mileage and actual expenses deduction methods

Moreover, here are some of our help articles you can open for more information about mileage tracking:

• Automatically track mileage in QuickBooks Self-Employed
• What is Mileage Tracking?

If you have any follow-up questions about the standard mileage and actual expenses deduction methods, please let me know by adding a comment below. I'm more than happy to help. Have a good one!

I'm sorry, but I didn't need an explanation of the standard mileage deduction vs. the actual expenses deduction. There is plenty of information about that online. My question, which you did not answer, is about my specific case, as stated in my original question.

Additionally, my final paragraph was cut off and should read:

"My understanding is the standard mileage deduction does not need to be recorded as an actual expense on the company books; it's just a deduction you take on your taxes. So I don't see the need for the journal entry. Can someone explain to me why my accountant would have recorded this journal entry? I did ask him, but I have a hard time following his explanation."

Not sure if you figured this out yet...

I have a similar scenario with meals. I take a "standard deduction" for travel meals based on the GSA rate. If I spend $10 on food, I deduct the full M&IE rate for that day. I debit travel meals and credit an account to charge distributions. 

In semi -laymen's terms, everything has to be accounted for. The debit "increases" the expense account (reducing your tax liability). Crediting an account to charge distributions makes the company "owe you" that money. You don't have to remove that money from the business, but you can, tax free. 

I'm no accountant, but this is how it was explained to me. Maybe someone else can elaborate. 

Not sure if you figured this out yet...

I have a similar scenario with meals. I take a "standard deduction" for travel meals based on the GSA rate. If I spend $10 on food, I deduct the full M&IE rate for that day. I debit travel meals and credit an account to charge distributions. 

In semi -laymen's terms, everything has to be accounted for. The debit "increases" the expense account (reducing your tax liability). Crediting an account to charge distributions makes the company "owe you" that money. You don't have to remove that money from the business, but you can, tax free. If you only took it as a deduction, and you later wanted to "use" money from your company, you'd have to pay taxes on it (if it wasn't recorded in this way)

I'm no accountant, but this is how it was explained to me. Maybe someone else can elaborate.