Do you ever drive around for business purposes and wonder if there’s a way to save money on your taxes? Well, TRACKING YOUR MILEAGE could be the answer you’ve been seeking!
First, let’s talk about why tracking your mileage is beneficial. You can claim a tax deduction by keeping an accurate record of your business-related travel. This means you can deduct the expenses you incur while driving for work, which ultimately lowers your taxable income and saves you money.
Another benefit of tracking your mileage is that it helps you keep accurate records. This can be useful when filing your tax returns or in case of an audit. You’ll have evidence of the expenses you incurred during your business-related travel, which can make the process smoother and less stressful.
Now, let’s talk about the mileage rates. For 2023, the standard mileage rate is set at 65.5 cents per mile driven. That means you can deduct 65.5 cents from your taxable income for every mile you drive for business purposes. And if you kept records for 2022, the rate was 58.5 from January 1 to June 30th and 62.5 cents per mile from July 1 to December 31st.
It’s important to note that the standard mileage rate only applies to business-related travel. So if you’re driving to and from work, those miles won’t count towards your tax deduction. But if you’re running errands for your business, traveling to meetings or conferences, or doing any other work-related driving, those miles can add up and help you save money on your taxes.
In conclusion, tracking your mileage can significantly benefit your business. By keeping accurate records and taking advantage of the standard mileage rate, you can lower your taxable income and save money on your taxes. So next time you’re driving for work, make sure to keep track of your miles – your wallet will thank you!