Did you know that the average MileIQ customer deducts over $500 per month and saves an average 5 hours per month by not needing to keep a manual mileage log?
These are great numbers, but you’re an individual!
That’s why today we’re thrilled to announce the creation of the MileIQ mileage deduction calculator available for free at mileiq.com/calculator. With our new calculator, anyone can now figure out exactly how much their annual mileage deduction is worth.
How it Works
To get started estimating your annual mileage deduction, simply visit the mileage calculator and begin filling out the fields. There is quite a bit of fancy math from our accountant friends going on in the background, so here’s a quick rundown of what you’ll want to enter and why:
Taxable Business Income
The IRS sets tax rates by income tax bracket. By providing this number, we’re able to more accurately estimate your deduction.
Miles You Drive for Work, Medical and Charity
By now, you probably understand that you can deduct the miles you drive for work on your taxes. With the IRS mileage rate currently at 57.5 cents per hour, it’s a deduction that adds up quickly!
However, many people don’t know that they can also deduct the miles they drive for charitable work and for medical reasons. The mileage calculator will help you estimate what those drives are worth and help you get the most from your deduction.
Time Spent Logging Miles and Value of Time
This one might seem a bit odd, but after talking to thousands of our customers we know one of the biggest values they get from MileIQ is the time they save by having our mileage tracking app do all of the work. In fact, our average customer saves five hours per month versus keeping a manual log. If your time is worth $20 per hour, that’s $100 in savings every single month.
Peace of Mind
If you fail to keep an accurate mileage log and end up audited by the IRS, you can lose your entire deduction, which is why we suggest that amount to enter here. However, that doesn’t take any IRS fines or penalties into account, so enter whatever you think is fair in this space.
Our customers tell us they track at least 10 percent more miles using MileIQ than they do with pen and paper, so we show you the mile you’re probably missing.
Because the cost of MileIQ is tax deductible, we also show you the cost of an annual subscription, which is the most cost effective way to get unlimited drives with MileIQ. This price is reflecting in the next two fields…
Our new mileage calculator shows you two numbers here – “Total Cash Savings” and “Total Yearly Savings with MileIQ.
Total Cash Savings is an estimate of the actual dollar amount you can expect to deduct on your taxes based on the information you provided.
Total Yearly Savings with MileIQ is not only what you can expect to deduct on your taxes, but also includes the value of the time you save and peace of mind.
Head over to www.mileiq.com/calculator to see exactly how much you can expect to deduct next year. Be sure to let us know in the comments how big your deduction might be.
MileIQ’s blog does not constitute professional tax advice. You should contact your own tax professional to discuss your situation.