(Feb. 13, 2023) — A mileage log is a list of the miles driven for a particular reason, such as a business or personal trip. A mileage log is essential since it serves as a record of the route taken for tax, reimbursement, and expenditure purposes. Maintaining a mileage journal can help to optimize tax deductions or reimbursements while aiding in the proper tracking of costs.
What information should I include in my mileage log?
A typical mileage journal should include the date, the beginning and ending locations of the trip, its intended use (personal or business), and its overall distance. Include any extra information that may be relevant, such as the route followed, the number of passengers, and any costs spent. In this article, we’ll show you how to create a mileage log in minutes.
What are the tax benefits of keeping a mileage log and how can I use it to claim deductions?
A mileage log can be used to claim tax deductions for business travel expenses, including the cost of operating a vehicle for work purposes. To claim a deduction, you will need to provide evidence of the distance traveled, the purpose of the trip, and the date of travel.
Important tips for mileage logging
- Maintain consistency: To make it simpler to compare and retrieve information, follow the same structure for each entry in your mileage journal.
- Consider storing it electronically by utilizing a spreadsheet or a mileage monitoring tool. Your data will be simpler to access, update, and backup as a result.
- Update often: You keep your mileage log accurate and current, make sure to update it frequently.
- Back it up: To safeguard your data in the event of a technical problem, regularly backup your mileage log to a secure location, such as a cloud-based storage system.
- Make it approachable: Keep your mileage journal somewhere that is simple to get to, such on your computer or in a file folder, so you can immediately consult it when necessary.
- Date-based organization: To make it simpler to discover the information you need, arrange your mileage log by date.
- Use a binder or file folder: As a physical storage option, think about keeping your mileage log in a binder or file folder. Make sure to carefully mark it so you can locate it.
- Consider adding notes to your mileage journal to help you recall the reason for each journey and to offer context.
How often should I update my mileage log and how can I make sure it’s up-to-date?
Depending on how frequently you use your car for work or business, you should update your mileage log accordingly. If you drive every day, you might want to think about updating your mileage diary at least once each week or following each work trip. If you don’t drive your car as much, you may update it less frequently—at least once a month.
You may utilize a reminder system to make sure your mileage log is current. You may set a calendar or phone reminder to remind you to update your mileage log once a week or once a month.
Instead of manually entering the information every time, you may use a smartphone app that automatically counts your distance. These applications use GPS to monitor your travels, making it simple for you to maintain an accurate and up-to-date mileage report.
MileageWise’s mileage log creator
With its 3+1 automated monitoring modes, trip purpose auto-classification, and concierge service, MileageWise’s mileage software may be an excellent tool for keeping track of your mileage. With this service, they can correct your mileage log or even start from blank.
Missing a few travels? Not to worry. To fill up every blank in your mileage report, MileageWise’s AI-powered AdWise features promote journeys based on previously visited destinations. The built-in IRS auditor function examines and corrects 70 various logical conflicts in your mileage record, making it 100% IRS-Proof. This feature prevents you from printing your mileage log without making the necessary corrections.
For 14 days, MileageWise is entirely free for you to test it and see how you like it.