MileIQ is a great way to automatically track your business drives for the largest mileage deduction you deserve. But, did you know you can also write off MileIQ on your taxes?
Why Can You Write Off MileIQ
If you’re self-employed, a freelancer or run your own small business, the IRS lets you deduct virtually any reasonable business expense. The only conditions are that these costs are:
- Ordinary and necessary
- Directly related to your business
- For a reasonable amount.
MileIQ definitely checks these boxes. That’s why you can deduct the cost of MileIQ on your taxes.
Who Can You Write Off MileIQ?
If you receive 1099 income, most likely, you can easily write off the cost of MileIQ on your taxes. This is true even if you have a 1099 side job in addition to your full-time W2 job.
If you’re a W2 worker, it can be a little trickier. But, you may potentially write off the cost of MileIQ on your taxes. In many cases, W2 workers can only deduct business expenses if they are itemized and if it exceeds 2 percent of your Adjusted Gross Income.
How To Deduct MileIQ On Your Taxes
You can deduct the cost of MileIQ on your taxes by using the Schedule C tax form. You can include it under Part II, where you declare the net profit or loss after business expenses. Some small business owners and self-employed workers with business expenses of $5,000 or less may be able to use the Schedule C-EZ form instead.
MileIQ’s blog does not constitute professional tax advice. You should contact your own tax professional to discuss your situation.