Based on a recent report published by The Zebra, Americans now drive a collective 3.2 trillion miles each year. To put this into perspective, the same report goes on to say that’s almost the same distance as 5,000 trips to the moon and back. That’s a lot of driving and fighting traffic.
Many people give little thought to how far they drive or how often. For some people, though, keeping track is not only beneficial but essential. Anyone interested can find out here now why that’s the case. In the meantime, take a look at some of the deeper details of mileage tracking.
Why Would People Need to Track Their Mileage?
People may need to keep track of their mileage for several reasons. Mileage reimbursement is one of the most common. After all, if it’s possible to get paid for some of the miles being traveled, why not take advantage of that option?
Business Mileage Reimbursement Programs
Some companies offer mileage reimbursement programs for employees who drive their personal vehicles for business purposes. In some cases, those programs can be more affordable than purchasing, insuring, and maintaining fleet vehicles. To reward employees for driving their own vehicles and help mitigate some of their resulting expenses, companies repay them a percentage of the mileage they incur.
In those cases, keeping a definitive record of the miles driven for work is essential for employees. Doing so helps ensure the employees don’t overlook miles they could be paid for. It also prevents employers from paying for mileage that wasn’t accumulated for work-related purposes. Solutions like those available from MileIQ can help keep accurate track of those miles.
Keeping Track of Mileage for Tax Deductions
At the same time, many people can keep track of their mileage and submit those records with their tax returns for reimbursement. Several rules and regulations apply to situations like this. People can receive reimbursement for miles driven for business, medical needs, charitable causes, and certain other reasons.
Business owners may be able to receive tax deductions for miles driven for their companies as well. According to realtimecampaign.com and other sources, tolls, parking, and other relevant expenses can also be added to the mix. Certain other costs may be deductible, too.
As noted in the article, “IRS Raises Standard Mileage Rate for Final Half of 2022,” the reimbursement for certain miles driven has recently increased. Taxpayers don’t necessarily have to submit electronic records of their mileage to receive reimbursement from the IRS. Still, it’s always best to have accurate records on hand just in case the matter comes under fire.
Maintaining Accurate Mileage Records
Keeping accurate mileage records is important for a few key reasons. For one, it ensures nothing is overlooked. Secondly, it can help people avoid potential problems with their employers or the IRS.
There are various ways to keep track of mileage. One of the most basic is simply writing down the mileage on a notepad. Drivers can even take pictures of their odometers before and after work-related trips. Of course, both of those options are vulnerable to human error. Mileage tracking apps are also available for automatic tracking and recordkeeping.