1. What Are Tax Miles?

Tax miles refer to the business miles you can deduct on your tax return. These are miles driven for work purposes that aren't part of your regular commute.

2. How Does the Calculator Work?

The calculator uses a simple formula:

Where:

• \( \text{Business Miles Logged} \) — Miles driven for business purposes

Explanation: The calculator simply returns your logged business miles as these are typically the amount you can claim for tax purposes.

3. Importance of Tracking Business Miles

Details: Accurate mileage tracking is essential for maximizing tax deductions while maintaining compliance with tax laws. Proper documentation can help during audits.

4. Using the Calculator

Tips: Enter your total business miles driven during the tax year. Keep detailed records including dates, destinations, and purposes of trips.

5. Frequently Asked Questions (FAQ)

Q1: What counts as business miles?
A: Trips to client meetings, job sites, business errands, and other work-related travel (excluding regular commute to your main workplace).

Q2: Should I use actual expenses or standard mileage rate?
A: The standard mileage rate is simpler but actual expenses may be better if you have high vehicle costs. Consult a tax professional.

Q3: How should I track my miles?
A: Use a mileage logbook, app, or your vehicle's odometer. Record immediately after each trip for accuracy.

Q4: Are there different rules for self-employed vs employees?
A: Yes, self-employed can deduct directly while employees may need to itemize or rely on employer reimbursement.

Q5: What documentation do I need?
A: Keep detailed logs including dates, miles, destinations, and business purposes for all claimed miles.