If you are self-employed or involved with volunteer work, you may be able to deduct your miles if it requires frequent travel. It can be quite tedious to track every mile you use for work, but the payoff comes when you receive a fatter tax return check.
A little over fifty cents in tax reductions are applied per mile drive on average. Considering the high expense of gasoline, insurance, and car repairs, it really adds up.
Self-Employed Mile Deductions
Self-employed filers receive the largest amount of benefits from this deduction while having plenty of leeway. Assuming that you have a legally registered business, you may deduct 57.4 cents per mile driven for business purposes.
While you shouldn’t embellish business trips on your tax return, it is still quite dynamic. This may include things like purchasing business supplies, traveling to work sites, attending meetings or events, or even transporting clients. As you might imagine, taxis or delivery services will benefit greatly from this.
Employees Traveling For Work
If you are a salaried employee and you haven’t been reimbursed for a business trip, you may claim those miles on your tax return. The current rate is 32.5 cents per mile in deductions. This applies if travel expenses exceed two-percent of your gross income. Travel expenses must also remain within the company’s travel policy to qualify.
Expenses For Medical Trips
You may claim 23 cents for each mile driven if your trip is related to medical treatments. Considering the high cost of medical treatment in this country, itemizing your pharmacy trips, doctor visits and more will make it worth the extra number crunching. This applies if your medical expenses exceed 10-percent of your total income or 7.5 percent for elderly filers.
Be extra careful when itemizing your travel expenses as the IRS may want you to quantify it during an audit. If you need help determining how you file travel expenses, you may need the help of professional tax preparation services.