Driving up mileage deductions

Name: QuickBooks Self-Employed
Rating: 4.7 (234 reviews)
Author: QuickBooks

Driving up
mileage deductions

Whether you’re driving part-time, full-time, or occasionally making deliveries, mileage can be one of your largest tax deductions as a self-employed worker.

Buy now to track your miles

Track your mileage (15s)

Track your mileage (15s)

Track mileage automatically

Customers log on average $7,393 in mileage deductions per year with QuickBooks Self-Employed.¹

Automatic GPS tracking

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

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

Organize expenses

Business or personal? The app
makes categorizing individual trips
easy so you can accurately rack up
potential tax deductions

Business or personal? The app makes categorizing individual trips easy so you can accurately rack up potential tax deductions

No drain on battery

Patented technology uses your phone’s GPS only when you’re
moving – so you get reliable data
without draining your battery.

Patented technology uses your phone’s GPS only when you’re moving – so you get reliable data without draining your battery.

Maximize deductions

Drive up potential deductions
Find on average 37% more deductions by logging miles annually.²

Make every mile count
Every mile is worth about 58 cents in tax deductions or mileage reimbursement to the IRS.³

Automatic means accurate
No more pen and paper. Mileage data is logged accurately and automatically.

Watch deductions add up (15s)

Maximize deductions

Drive up potential deductions
Find on average 37% more deductions by
logging miles annually.²

Make every mile count
Every mile is worth about 58 cents in tax
deductions or mileage reimbursement to the IRS.³

Automatic means accurate
No more pen and paper. Mileage data is logged
accurately and automatically.

Watch deductions add up (15s)

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.

Use our standard mileage calculator

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.

If you want to use the standard mileage method, you have to do so for the first year that you drive for work. Afterwards, you can choose between the standard mileage method and the actual expenses method. Keep in mind that if you choose the standard mileage method, you can’t deduct any other vehicle expenses.⁵

See all mileage rates

Standard deduction calculator

Enter business miles driven for year

Calculate your deduction

Standard deduction

This tool is for exemplary purposes only and not to be used as tax guidance.

What qualifies as standard business mileage?

The IRS provides a helpful list of driving activities that qualify as business use, which include:

Travel between business locations (not between home and work)
Business errands
Travel to business meals
Travel to business entertainment
Drives to the airport for business travel

Customer visits
Travel to temporary job sites
Travel to job interviews
Tolls and parking during business trips

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.

The IRS requires that you substantiate your expenses with documentation, such as receipts, work orders, or other written records. For each expense, be sure to record the expense amount, expense date, place of service/purchase, and description, such as oil change, tire rotation, or lease payment.

What qualifies as actual expenses for a tax deduction?

The IRS lists a number of vehicle expenses that you can claim if you use your vehicle for work. You cannot deduct fines—such as speeding tickets—that you incur while driving for business. Legitimate expenses include:

Depreciation
Lease payments
Registration fees
License fees
Gas
Insurance
Repairs
Oil
Garage rent
Tires
Tolls
Parking fees
Damages not covered by insurance payments
Theft not covered by insurance payments

How to choose the best mileage deduction method

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 Self-Employed makes it easy. Automatically track your mileage and expenses year-round, and get estimates of your deductions from both methods. At tax season, choose which one is right for you.

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 leased or owned) for business, you’ll need to use the standard mileage rate method.

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 for exemplary purposes only and not to be used as tax guidance.

Find on average 37% more deductions by logging miles automatically with QuickBooks Self-Employed.⁶

Mileage logs

A mileage log is a written record of your trips that you submit with your business mileage deductions. It should show the date, destination, business reason for the trip, odometer readings, and total mileage. If you drive your vehicle for both personal and business use, you can only deduct the mileage that qualifies as business-related.

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.

As the taxpayer, it’s your responsibility to document all business mileage claimed, and to report it accurately when filing taxes. If you’re audited, the IRS will look for documentation to substantiate that mileage was in fact business-related. Without such documentation in the event of an audit, the IRS could disallow your deductions, costing you far more than the hassle of jotting down notes about your trip.

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.

Find on average 37% more deductions by logging miles automatically with QuickBooks Self-Employed.⁶

Benefits of a digital mileage log

The QuickBooks Self-Employed app acts as a digital mileage log by tracking and categorizing the miles you drive for work. When tax time comes, you have your business mileage information properly documented. Self-employed workers find on average 37% more deductions by logging business miles.⁷

Benefits of a digital
mileage log

The QuickBooks Self-Employed app acts as a digital
mileage log by tracking and categorizing the miles you
drive for work. When tax time comes, you have your
business mileage information properly documented. Self-
employed workers find on average 37% more deductions
by logging business miles.⁷

Mileage tracker

With QuickBooks Self-Employed, you can track mileage automatically to get the biggest tax deduction you deserve. Without draining your phone’s battery, the app detects your starting and stopping locations when you’re driving to automatically track trips. Think of it as a hands-free digital mileage log.

With QuickBooks Self-Employed, you can track mileage automatically to get the biggest
tax deduction you deserve. Without draining your phone’s battery, the app detects your
starting and stopping locations when you’re driving to automatically track trips. Think of
it as a hands-free digital mileage log.

Swipe left for business miles

After you finish driving, you need to sort your business miles from personal. With QuickBooks Self-Employed, simply swipe right to categorize a trip as personal or swipe left to put it in a business mileage category.

Using a mileage tracking app like QuickBooks Self- Employed ensures that your business mileage is recorded 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.

Swipe left for
business miles

After you finish driving, you need to sort your business
miles from personal. With QuickBooks Self-Employed,
simply swipe right to categorize a trip as personal or
swipe left to put it in a business mileage category.

Using a mileage tracking app like QuickBooks Self-
Employed ensures that your business mileage is
recorded 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.

Get started with QuickBooks Self-Employed mileage tracking

Download the QuickBooks Self-Employed mobile app from the App Store or Google Play Store. Once you sign in, open the app and tap Mileage at the bottom of your screen (iOS) or tap Mileage 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. And that’s it. When you start driving, QuickBooks Self-Employed starts tracking miles.

Get Started

Get started with QuickBooks Self-Employed mileage tracking

Get Started

Frequently asked questions

How do I add a manual trip?

Can I export and send it to my accountant?

Which product includes mileage tracking?

Can I add a trip to an invoice reimbursement?

Based on QuickBooks Self Employed tax year 2015 subscribers that have identified >$0 in business expenses and of those users that have >$0 in tax savings and have logged between >0 and <250k miles
Based on TY17 US mobile subscribers that have identified >$0 in income and >$0 in business expenses.
Beginning on Jan. 1, 2019, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) is 58 cents per mile for business miles driven, up from 54.5 cents for 2018. 20 cents per mile driven for medical or moving purposes, up from 18 cents for 2018. 14 cents per mile driven in service of charitable organizations, unchanged from 2018. These and other requirements are described in Rev. Proc. 2010-51. Notice 2016-79, posted today on IRS.gov.
https://www.irs.gov/tax-professionals/standard-mileage-rates
https://www.irs.gov/taxtopics/tc510
Based on TY17 US mobile subscribers that have identified >$0 in income and >$0 in business expenses.
Based on TY17 US mobile subscribers that have identified >$0 in income and >$0 in business expenses.

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

Driving up mileage deductions

Driving up
mileage deductions

Overview

Track mileage automatically

Maximize deductions

Maximize deductions

Mileage rates

Mileage rate 2018

Mileage deductions

How to calculate your mileage deduction

Standard mileage method

Standard deduction calculator

What qualifies as standard business mileage?

Actual expenses method

What qualifies as actual expenses for a tax deduction?

How to choose the best mileage deduction method

How to choose the best mileage
deduction method

Points to remember

Points to remember

Mileage logs

Mileage logs

Benefits of a digital mileage log

Benefits of a digital
mileage log

Mileage reimbursement

Mileage reimbursement

Mileage tracker

Mileage tracker

Swipe left for business miles

Swipe left for
business miles

Get started with QuickBooks Self-Employed mileage tracking

Get started with QuickBooks Self-Employed mileage tracking

Frequently asked questions

Discover how QuickBooks Self-Employed helps you track and maximize mileage deductions.

Buy now and save up to 50%

Driving up mileage deductions

Driving upmileage deductions

Overview

Track mileage automatically

Maximize deductions

Maximize deductions

Mileage rates

Mileage rate 2018

Mileage deductions

How to calculate your mileage deduction

Standard mileage method

Standard deduction calculator

What qualifies as standard business mileage?

Actual expenses method

What qualifies as actual expenses for a tax deduction?

How to choose the best mileage deduction method

How to choose the best mileagededuction method

Points to remember

Points to remember

Mileage logs

Mileage logs

Benefits of a digital mileage log

Benefits of a digitalmileage log

Mileage reimbursement

Mileage reimbursement

Mileage tracker

Mileage tracker

Swipe left for business miles

Swipe left forbusiness miles

Get started with QuickBooks Self-Employed mileage tracking

Get started with QuickBooks Self-Employed mileage tracking

Frequently asked questions

Discover how QuickBooks Self-Employed helps you track and maximize mileage deductions.

Buy now and save up to 50%

Driving up
mileage deductions

How to choose the best mileage
deduction method

Benefits of a digital
mileage log

Swipe left for
business miles