All You Need to Know About About Mileage Log Requirements
It is every citizen’s obligation to pay their taxes, failure to do so could lead to prosecution and possible jail time. However, you can claim some tax refunds, but this requires keeping your records well to make it easier for you and the IRS to do the calculations. One of the tax refunds that you can claim is mileage expenses by submitting mileage sheets. The IRS has very specific and well laid out procedures and guidelines on the type of mileage refund you can claim, expenses that you incur from and to your home to your business does not qualify for a refund.

mileage sheets

Keeping Records Safe

As earlier indicated, records will be needed to claim the refund. The mileage that you cover is recorded on a mileage sheet which can either be digital or a hard copy. It is advisable to store your data in electronic format because it is more secure and safe. Additionally, you can back up your mileage record as this prevents loss of data. Since the log needs to be kept for a period of up to five years after filing for the refund, electronic format is the best way to ensure your information survives that long.

Know How to Fill

The IRS has a very strict procedure for filling out the mileage sheet. Among the information that is required on the sheet ― the reading of your vehicle’s odometer at the beginning of the year, the reading at the end of the year, gas costs, parking fees and purpose of the trip among other expenses incurred. To have a good record in preparation of filling out the mileage tax relief sheet, it is important to record your business activities each day. This can be a daunting task especially if you are busy, thankfully, you can take advantage of the mileage tracking apps

Calculating the Mileage Refund

The importance of maintaining good business records cannot be stressed enough. Your records are what you will use to calculate the tax relief that you will get. There are two ways to go about this. In the first method, you calculate every mileage the car has traveled in the course of doing business. You do this by using a simple formula; the rate that you will use is given by the IRS for that particular year. This method does not allow you to claim other business-related expenses incurred during the year. The other method is factoring all expenses associated with doing business, and mileage is then calculated as a percentage of the expenses.

In conclusion, people use their vehicles to conduct business but what is unknown to most is that they can claim tax refunds from the IRS. Meticulous record keeping in the form of mileage sheets is a requirement if you intend to claim any refund at the end of the year and knowing how and where to store these records is a plus. Electronic record keeping through mobile apps is the most preferred way of doing it because of its obvious advantages over manual record keeping.

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