Keeping a Mileage Log While Self-Employed This is a good idea because the IRS could audit you at any point, and they can request logs dating back up to 3 years. How Long Should You Keep Your Tax Records?Īs a rule of thumb, it is usually worth it to keep tax records that date back a long time, though at a minimum you should keep a comprehensive vehicle mileage log dating back at least 3 years. Doing this could be difficult depending on the Excel version you have, though with our mileage logging software you are automatically shown the potential deductions of your logged trips – more on that later.Īlthough the IRS doesn’t require personal trips in your mileage log, it’s strongly recommended that you include them because it will provide clarity for both yourself and the IRS since you need to separate your total business mileage, total personal mileage, and total commuting mileage for the year.Īlso, logging your personal trips boosts the proficiency of MileageWise’s built-in IRS auditor function, which you need for an IRS-Proof result. Potential deduction amounts, although this information is by no means required by the IRS, – using the 2023 standard mileage rate of 65.5 cents per mile for instance – your drives could give you a good idea of just how much you can claim in tax deductions from the IRS.If it doesn’t, or if there are logical conflicts in your trips and readings, you could face a sizable IRS fine. The IRS requires this information so that they can see if your total recorded mileage coincides with odometer readings. Your odometer readings at the very least at the beginning of the year and at the end.The departure and arrival points of all your trips.Commuting to and from your workplace is not considered a business trip, though if you travel from your work to a client, in the service of a client, to run errands, or even to attend a business lunch, these trips are tax-deductible. The purpose of your trip, or, in basic terms whether or not that trip counts as business travel or personal travel.Generally speaking, a mileage expense report should adhere to the requirements as stated on the IRS.gov website. Let’s examine the specifics of what a mileage log should contain, and how different scenarios related to mileage logging affect those who need them. On this page, we’ll break down what you need for a mileage log whether you’re self-employed or receive mileage reimbursement as an employee of a small business or an enterprise company – you need only to scroll down if you simply need the Excel mileage log template. Luckily, we have a mileage form template, which you can use to track your business expenses for mileage, you only need to download Excel if you haven’t already, or just open it on Google Sheets in your browser. While you’re certainly better off using a mileage tracker app, some people just prefer a more old-fashioned approach using an Excel template.
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