Mileage logs are the records of your driving which should be maintained by an individual to reimburse the cost of traveling for business purpose and to give the IRS(Internal Revenue Services) a maintained record of your travel for the different purposes.People record their travel weekly or monthly but IRS remain unsatisfied with this type of records when an audit is done.
So, to record your mileage in an easy way, take help of a Mileage Log.Record your mileage for each trip this will help you in maintaining a clear record.The Federal Government has got some strict rules to deduct a certain amount of money per mile in some areas of service like a business, medical, moving and charitable travel.It is the duty of the employed or self-employed person to keep a record of the travel ad correctly calculate mileage taxes.
So, we are providing ready to use free templates for our users.It can be downloaded for free and are available in different formats.We are providing Mileage templates in Word format and in Excel format for our users’ convenience.
Below are some tips on how to calculate Mileage for Taxes.
Tips to Calculate Mileage for Taxes
The First part is to tKnow about the different charges for different travel and other related conditions:
Know the different charges for each mile traveled
There are different charges are implied on the people for the different purpose of trips.You must know the type of travel and the related charges.The deductions rates changes for almost every year so, check the site www.irs.gov in order to make sure the charges of deductions.
Know your Business Mileage
If you are traveling to your client or customer, going for a business that is at a different place than your regular workplace, or going to another office of your company, etc. these all types of travel comes under the business travel.Hence, these all are counted for Business Mileage Deductions.
Know your moving mileage
There is a certain rule in mileage deducted for moving purposes, there must be a time or distance limit you must comply with.A distance of 50 miles is must between your new home and new employer than your former home and former employer.
The IRS follows some rules to know your moving mileage like it considers the shortest distance between your home and office and the person must work for at least 39 weeks per year at the new place to deduct moving mileage.
Know Your Medical Deductions
Make a record when you travel for a medical purpose in the Mileage Log.Note the place of start and destination distance.In the Mileage log, write the toll and other related charges separately.
Know Your Donation-related Mileage
Make the records of mileage when you are traveling for donation purposes.Even if you are traveling as a volunteer record the mileage in the log and the distance between the to and from places.
Now the second Part starts in this, there are tips in which you have to track your mileage:
Note your mileage in Mileage Log
You should have your mileage log or a small notebook in your car to record the mileage.Always keep in mind to note the nature of travel and the distance you have traveled for the purpose.The best way is to write the starting mileage when you start your journey and final reading at the end of the journey.Note the type of travel and the address of the locations you are traveling to.Include dates of travel.
Record only valid Mileage
If you are traveling for business purpose and you do your personal work mean time it will be something different.As a travel from your home to store can not be deducted unless it is for the business purpose.
Final calculation at the End of Year
Calculate your final deduction at the end of the year.Note down the distance you traveled in miles and charges for all different categories.Multiply the miles you traveled and the charge for the particular category to get the total deductions.
Add all deductions
After calculating all the deductions, add them to get your final figure of deductions.
Holding Your Records
The IRS suggests holding the record of your deduction for a period of 3 to 7 years.This is a long period but to stay on the safe side you must keep the records as the audits are done in this much time only.
We are providing free downloadable and printable templates on our page to help our users with their work.So, choose from the available various designs of the templates and edit it according to your own will.
If You find the above-provided information helpful or this page helped you anyhow then please comment in the comment section.Any suggestions to improve our site will be appreciated.