The new tax laws may have you wondering if you still need to track your mileage for taxes. Let’s go over how MileIQ users may be impacted by the new tax law.
What Are The Major New Parts Of The Tax Law?
The new tax law includes a major cut in the corporate tax rate, as well as reductions in the individual tax rates.
As with change in the tax law, there are many, many little things that you should talk to your tax pro about. We’ll go over a few things we think are useful for MileIQ users.
Keep in mind that most of the new tax law changes will impact your 2018 tax year. When you file your taxes on April 17, 2018, you will be filing for 2017 taxes and the previous tax law. The impact of the new tax law will mostly be felt starting in 2019.
Are Deductions Still Valuable Under The New Tax Law?
Yes. Deductions can still lower your taxable income, which lowers the amount of taxes you have to pay, which essentially puts money back in your pocket. The average MileIQ Premium user logs $6,900 in potential deductions a year for mileage. When you add that to your other business expenses, it could lead to a lot of tax savings.
Can I Still Deduct My Mileage Under The New Tax Law?
Yes. If you’re self-employed, you can still deduct your mileage as a business expense. In fact, your miles are worth more in 2018. Every business mile is worth 54.5 cents as a mileage deduction vs. 53.5 cents in 2017.
If you are a W2 employee who wasn’t getting reimbursed for your business mileage, you used to be able to deduct mileage on your taxes. This has gone away with the new tax law.
Who Should Still Use MileIQ for Mileage Tracking?
You can benefit from MileIQ if you:
- Are self-employed and want to write off your mileage on taxes
- Need to track your mileage for reimbursement purposes
Who May Not Need MileIQ With The New Tax Law?
If you’re a W2 employee who was tracking mileage to take a partial mileage reimbursement, the new tax law has unfortunately done away with this deduction.
Why Do I Need MileIQ For My Deduction?
The IRS isn’t going to take your word for your mileage. You’re going to need a mileage log that provides documented proof of your trips.
MileIQ is the leading mileage tracking app with millions of users. It includes automatic mileage logging, so you never have to worry about starting and stopping trips. You just drive as your normally would and MileIQ creates a mileage log for you.
With an elegant design, MileIQ makes it simple to classify drives with a swipe or through the Web Dashboard. Your data is always securely stored in the cloud, so you’ll have access to mileage logs years down the road. We’re also consistently adding intelligence features to make it easier for you to log your miles.
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MileIQ’s blog does not constitute professional tax advice. You should contact your own tax professional to discuss your situation.