mileage

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I'm having trouble figuring out whether to track my mileage or take the standard deduction. Is there an easy way to figure out which is best for me?

Ask the Experts - Self-Employed - Aug 2023

mtufaroAnswer

Level 7

Hello @Catherine70, and thank you for the question. Whether you take actual expenses, which include depreciation, gas, repairs, etc., or the IRS Standard Mileage Rate for 2023 of 65.5 cents per mile, you want to track all your miles.

Do take any vehicle deduction, the IRS requires adequate records to support this deduction, or for that matter any tax deduction. My best practice is to advise customers to track all mileage. Although the IRS doesn't require personal trips in your mileage log, I strongly recommended that you include them because it will provide clarity for both you and the IRS, since you need to separate your total business mileage, total personal mileage, and total commuting mileage for the year.

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Ruth C-L

Alumni - Intuit

The standard deduction is a separate deduction from the vehicle deduction. The standard deduction is a flat amount determined by the IRS based on your filing status. If you claim the standard deduction, you’ll simply enter the available standard deduction on your Form 1040.

To claim a vehicle deduction, you'll need to track your mileage regardless of whether your claim actual vehicle expenses or use the standard mileage deduction. Please let me know if you have further questions.

Ruth, CPA, Esq.

Catherine70Author

Level 2

When I've done my taxes the last couple of years and input my mileage, it's practically appeared as if the mileage has been disregarded and it recommends that I take the standard deduction. But according to the answers, perhaps not 🙂

Is it typically more advantageous to do actual expenses?

Thank you!

mtufaroAnswer

Level 7

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rschule1

Alumni - Intuit

Hi there:

Just a friendly reminder that for federal tax purposes there is no longer an automobile deduction for a W2 wage earner. If you are self employed then there certainly is an automobile deduction which the previous posts did a fine job explaining.

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