The Internal Revenue Service (IRS) allows taxpayers to claim business-related vehicle expenses. To figure the deduction, one can either use the actual vehicle expense method or the IRS standard mileage rate depending on which method can provide the most deduction. For the IRS standard mileage deduction, the rate for 2024 is now 67 cents for every business mile driven (from 65.5 cents in 2023). 

Either way, you will need to manage and track your business mileage to support your claim for deduction. Yes, that is true even if you use the actual expense method because you can only deduct the amount of your actual vehicle expense up to the business-use percentage of your vehicle. And to compute for the business-use percentage, you will need to track your business miles too. 

It is an IRS requirement to prove your claim for deduction by providing records of the amount, purpose of travel, time, and destination. But tracking the business miles and keeping detailed records of each travel can be time consuming and can easily slip someone’s mind. So, here’s your guide to make mileage tracking hassle-free and convenient. 

Automatic Mileage Trackers and their Features 

We urge our clients use either QuickBooks Mileage Tracker or MileIQ app since they are both user-friendly and reliable. They are both designed to help individuals and businesses track their mileage for tax deduction purposes. 

Both apps use a GPS tracking system that automatically detects, logs, and calculates all your miles driven without the need to manually create a trip, press a start or stop button each time you go for a drive. You just have to allow the app to track your location, and then no miles will ever go to waste even if you’re a forgetful one.  

After each drive, these apps will provide a detailed record of each trip. All that is left to do is to swipe left of right to classify each trip as either for business or personal use.  

They also provide comprehensive mileage reports using tax compliant mileage rates, making it easier to monitor how much deduction can be claimed using the standard mileage deduction. The reports are always ready and available saving you the stress of locating where your paper records are during tax time. 

Which Tracker Should I Choose? 

Both tracker support IOS and android systems. Your choice will depend on your current subscription and needs.

 QuickBooks Mileage Tracker  

The QuickBooks Mileage Tracker is an integrated function of QuickBooks Online (QBO). If you are an existing QBO subscriber, simply download the QuickBooks Online mobile app on your phone and select the mileage function. No additional fees needed; you just have to maximize your existing QBO subscription by utilizing its mileage tracker. 

It also supports more system platforms such as Windows, Mac, Linux, etc. Once you are back to your computer, you can view and manage the mileage data recorded from your phone. 

Subscription fees are higher compared to MileIQ, but those who doesn’t have an existing QBO subscription may still consider this as an option since QBO is more than just a mileage tracker. It is a cloud-based accounting and financial-management software that helps you manage your business finances.  

MileIQ 

MileIQ is a dedicated app for mileage tracking and you can download it for free from your favorite app store. The free version of the MileIQ app can be used up to 40 drives per month. But if you think you’ll need more, you can subscribe for unlimited drives for only $5.99 per month.  

Say goodbye to your pen and paper and say hello to accurate and tax compliant reports! This mileage tracking apps will save you a lot of time and maximize your tax deductions. 

Want to learn more? 

You may want to consult and work with 1099 Accountant – We offer online bookkeeping, online advisory services and online tax and accounting services. We offer reasonable rates. We only work with independent contractors, freelancers, and one-person business. We work with locum tenens from California to New York City and everywhere in between. Yes, even Hawaii! 

Contact us toll-free (855)529-1099 or make an appointment for a free consultation. Contact Us