HONOLULU (HawaiiNewsNow) — Tax Day is right around the corner, but it’s not too early to start planning for next year.
Keeping a good record of expenses is one thing, organizing them is another.
Every year I sit down to collect my taxes and receipts for our IRS, I think about how I could have made the process easier and less time consuming. Good, organized folders could save you from spending an entire weekend getting things in order.
For people who use their personal car for business purposes, one of the best deductions is mileage.
Salespeople, real estate agents and contractors use their personal vehicles daily for their work. The mileage deduction for 2022 is 58.5 cents. Even a few runs a week could add up.
The problem with tracking all those business miles is tracking those business miles. If you have a system that always reminds you to write down when you were driving, where you were going and what you were doing, congratulations. For the rest of us, an app that does this automatically can save headaches and money.
I found an app to help me and I browsed Mile IQ. I liked the premise. Set it and forget it. Once the app is open and you need it to run in the background, it will record every mile when the phone is moving in a car. It’s pretty smart in that it only records when you’re in a car. You can set it to start manually if you don’t mind opening the app and pressing a button to get started. I prefer the app to do it on its own.
Once you arrive at the location, Mile IQ will send a notification in the form of an app badge, a small number that appears in the corner of the app icon on the screen. It will ask you to note whether the trip was personal or professional.
To save this, just swipe left (for individuals) or right (for businesses). You don’t have to do this right away, Mile IQ will record the trip until you categorize it.
You can also mark each trip as a certain expense. I mainly travel for video shoots and meetings and when I swipe right for business he asks me what the trip was for. It records the starting address and the destination with time and date. If you use several vehicles, you can give them a name and Mile IQ manages the journeys per vehicle.
At the end of the month or year, or at any time, you can email a report as a spreadsheet or save it to a computer. When I did this, I saw each trip carefully recorded so I could print it out at tax time.
Mile IQ is a free app for iPhone and Android devices. You can get 40 trips per month, so if you want to use it for free, you’ll probably have to set it to start manually or it will track every trip to the gym, church, or grocery store. There is a subscription for unlimited rides for $6 per month or $60 per year. not a free app. Yes, since the app is for businesses, it is also tax deductible.
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