Get the Most from Your 2019 Mileage Tax Deduction

Get the Most from Your Mileage Tax Deduction

Do you drive for your job or business? Then you might be eligible for a mileage deduction. Here is an easy-to-understand guide to the IRS standard mileage deduction. Happy filing!

In 2019, you can deduct 58 cents per mile driven for business. If you drive a lot, either for your business or for an employer that doesn’t reimburse your expenses then keeping careful track of your miles will give you the biggest tax deduction. Hurdlr is an app that can automatically track all your miles driven and give you a report at tax time. 

1. What Kind of Driving is Deductible?

If you drive for business in some way and your employer does not reimburse you for gas, those miles are eligible for the deduction. Common jobs that accrue deductible miles include realtors, sales, and contractors.

In addition, miles logged for charitable organizations and medical or moving expenses can also be deducted.

2. Is it Worth my Time to Log the Miles and File the Deduction?

To be able to take advantage of this deduction, your unreimbursed expenses must equal more than 2% of your salary. If you have to drive three miles down the road several times a week to go from the main office to the salesroom, it’s not necessary to start logging your miles.

If, however, you spend a great deal of each day in the car, you could be missing out on some major tax savings if you do not deduct your miles.

3. What is the Rate for the Mileage Deduction?

For miles driven in 2019, the business mileage rate is 58¢ per mile. The rate for mileage accrued for charitable organizations was 14¢ per mile. The rate for medical or moving expenses was 20¢ per mile.

Here’s a little more info on this from the IRS.

4. What Kind of Driving is not Eligible for the Deduction?

You are not entitled to the deduction for miles driven during your commute. You cannot be using more than five cars at once to qualify, and your car cannot be for hire. (In other words, you cannot deduct your mileage if you are running a taxi company).

Finally, if this is the first year that you have accrued unreimbursed miles for business, you must take the standard mileage deduction, rather than the Actual Expenses Deduction (see question 5 below).

5. What is the Actual Expenses Deduction?

If you believe that the cost of using the car will add up to more than the 58¢ per mile that the standard mileage deduction will provide you, it might make sense to deduct your actual expenses. These include the cost of lease payments, licenses, repair, insurance, maintenance, depreciation, parking, etc.

Do not forget, however, that parking expenses are still deductible even if you choose the standard deduction. This option is not for everyone, but if you’re organized and diligent, you might find that this is the better option for you.

Here’s more about the rules for deducting mileage expenses from H&R Block.

6. Is there Anything that Can Help me to Log my Miles?

For years, the only way to keep track of miles for this deduction was with pen and paper. Now, there are several programs out there that can log your miles automatically through your GPS.

Check out Mileage Logger or Garmin Reports or Hurdlr.

Hurdlr Mileage Tracker App Review

A great way to track work-related mileage is through Hurdlr. It’s an app designed to make life easier for freelancers, independent contractors, and other professions that need help tracking income, expenses, and mileage. By using Hurdlr, you’ll also be able to estimate your tax burden and track tax deductions throughout the year. Hurdlr users have been finding over $5,600 in tax deductions on average. 

How Does Hurdlr Work?

Ideally, you’ll use one specific bank account for your business expenses and income. Once you’ve linked your account, Hurdlr is able to track income and expenses easily. You can also link Hurdlr to services like PayPal, Square, Stripe, Freshbooks, and others to stay completely synced. 

There’s a mileage tracking function that runs in the background and tracks mileage automatically. It can even integrate with Uber’s app. There’s no need to manually track your mileage anymore. 

Hurdlr tracks everything efficiently and automatically. It keeps track of deductions, reimbursements, and so much more. You have access to tons of financial reports with Hurdlr too. You will always be organized and ready when it’s time to tackle your taxes with their Tax Estimator. 

Who can Benefit from Using Hurdlr? 

Hurdlr is perfect for people with side hustles or those who are self-employed. It’s an easy and inexpensive way for people to track mileage along with their income and expenses. Hurdlr is a great option for:

  • Uber drivers and Lyft drivers
  • Freelancers and entrepreneurs
  • Independent contractors
  • Real estate agents
  • Drivers
  • Postmates and Instacart couriers
  • Airbnb, HomeAway, and VRBO hosts

Hurdlr can integrate with many of the other tools and apps used by people who are self-employed. Real estate agents can use it to track commissions. It provides enough accounting and finance tracking functions without overcomplicating anything. 

Learn more about tracking your mileage with Hurdlr here

How Much Does Hurdlr Cost? 

Hurdlr offers three levels of service and pricing for customers:

Free: This is perfect for people who work part-time or have side hustles. You get access to unlimited mileage tracking, tax calculation summaries, and the ability to add income and expenses. You can also export or email reports from Hurdlr under this plan. Sign up for Hurdlr’s free plan.

Note: On this plan, you will have to manually start and stop the mileage tracker. If you’d prefer it to track your driving automatically, you’ll want to upgrade to the Premium plan. 

Premium: This plan costs users $7.99/month or $4.99/month if billed annually. You also get unlimited mileage tracking, but you also get other services like: 

  • Auto-Expense Tracking
  • Auto-Income Tracking
  • Speed Tagging
  • The ability to set your work hours
  • Real-Time Calculations for State and Self-Employment Taxes

Enterprise: This plan is designed for businesses to use. It allows access to all of the tracking tools to your entire company. There’s also personalized training offered with Enterprise to share with your team. For pricing, you need to contact Hurdlr directly.

Tracking mileage through Hurdlr could quickly increase your 2019 Mileage Tax Deduction. If you aren’t doing a good job of tracking your mileage then you are probably leaving money on the table. At $5 a month, you’d only need to track an extra 25 miles per month, approximately–depending on your tax rate. If you think you might be missing that from trying to track manually then Hurdlr will pay for itself! To say nothing of the time you’ll save by being able to skip this task. 

Hurdlr Price: Free Hurdlr automatically tracks all of your mileage, expenses, income streams, and tax deductions in real-time. Sign Up Hurdlr We earn a commission if you click this link and make a purchase at no additional cost to you.

How do you track your mileage? 

 

Get the Most from Your Mileage Tax Deduction
About Emily Guy Birken

Emily Guy Birken is a former English teacher and respected personal finance blogger. She lives in Milwaukee, Wisconsin with her engineer husband and two high-energy little boys. She has written four books: The Five Years Before You Retire, Choose Your Retirement, Making Social Security Work For You, and End Financial Stress Now. Emily's thoughts on parenting and life in general are found at The SAHMnambulist.

Comments

    Speak Your Mind

    *

  1. I found MileMarx GPS tracker to be very easy to use.

  2. I never knew you could log miles for medical reasons…interesting.

    Keeping logs is important, and every minute you spend to document anything is worth your time. With gas at $3.60 a gallon, I spend about .18 per mile purely in gas, with the medical deduction, for example, I would basically get $.05 per mile back assuming 25% taxes. That’s like going from 20mpgs to 25…worth my time, no doubt!

  3. Edwin @ Stack The Chips says

    The important thing is to keep good records. If you don’t get audited then you won’t ever need them, but if you do, they’ll be a lifesaver.

  4. Jon | Free Money Wisdom says

    Keep those receipts! I’ve been refused a tax deduction because I ended being audited and I couldn’t back up my claims with receipts! HUGE lesson learned 🙁

  5. I started tracking my miles because I drive a lot for my charity work however, I don’t do itemized taxes yet so it was a little bit of a waste of time.