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Learn how QuickBooks Self-Employed calculates your mileage deduction

Find out how QuickBooks Self-Employed calculates the total mileage you can deduct from your taxes.

If you use a vehicle for business, skip manually calculating your business mileage every trip. You can track your trips in QuickBooks Self-Employed. Then, QuickBooks automatically calculates the total mileage you can write off once it’s tax time.

If you’re new to automatic mileage calculation, here are a few things you need to know.

How does QuickBooks calculate my business mileage?

QuickBooks uses the standard mileage rate from the IRS to help estimate your tax write-off. To calculate your mileage deduction, QuickBooks multiplies your total business miles by the current rate:

 Year Rate per mile 
2019 58 cents
 2018 54.5 cents

You can choose to use this estimated deduction or calculate your actual vehicle expenses instead to get your tax write-off. If you have questions, learn about the differences between standard mileage and actual expenses.

Note: Still not sure which method to use? Don’t forget to talk to your accountant. If you don't have an accountant, we can help you find one near you.

What trips should I categorize as business?

If you own or lease a car, you can deduct the miles you drove for work-related purposes. Here are some examples of business trips:

  • Driving for a rideshare company (check with your specific company for details)
  • Going between offices or work locations
  • Picking up supplies
  • Dropping off orders
  • Having coffee with clients

Note: Keep in mind, commuting (between home and a permanent work location) doesn’t qualify as a business trip.

How can I track my total mileage deduction?

  1. Add your business trips in QuickBooks.
  2. To review your total mileage deduction so far, go to Miles. Here, you can also review total miles driven and the current mileage rate from the IRS.

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