How to Claim Mileage
- 1). Evaluate your entire tax picture to see if you can accumulate enough deductions to itemize them on an IRS Form 1040 Schedule A. At the time of publication, in order to itemize, you should have more deductions than the standard deduction amounts of $5,700 for a single filer, $11,400 for those married and filing jointly, $8,400 for a head of household, $5,700 for those filing married and filing separately or $11,400 for a qualifying widow(er).
- 2). Purchase a mileage log at an office supply store or create your own with a spreadsheet or a notebook. Where you track your miles is not as important as how you do it.
- 3). Note any business mileage you drive if you are self-employed, and note unreimbursed, non-commute business miles if you are an employee of a company.
- 4). Log mileage you drive to receive medical or dental care. This applies whether you are self-employed or not. You can also include trips to the pharmacy in this calculation.
- 5). Log charitable miles. This also applies whether you are self-employed or not. Include parking or tolls on your log for this activity. While this type of mileage is deductible at a much lower rate, it should still be logged.
- 6). Log mileage traveled while seeking a job. This mileage is deductible at the same rate as standard business mileage.
- 7). Log moving mileage if you change jobs or are required to move as part of employment. This deduction is a small rate, but it should be logged nevertheless.
- 8). Tabulate and itemize each category at the end of the year. Contact your tax preparer to discuss current deduction rates. At the time of publication, from July 1 through December 31, the standard business travel deduction is 55.5 cents per mile; the medical and moving expense deduction is 23.5 cents per mile and the charitable mileage is 14 cents per mile.
- 9). Evaluate whether this deduction is advantageous over the option of deducting actual expenses instead. You have the right to claim all gas, repairs, tolls, insurance, licenses, depreciation, garage rental and other associated expenses in total instead of accepting the standard mileage deduction. Consult your tax planner as to which option best fits your driving habits.
Source...