You can claim deductions for mileage and related use of auto expenses by keeping a detailed record of your business-related trips. This can result in significant tax savings and is crucial for financial planning and budgeting.
Having accurate records of business mileage can benefit you beyond tax purposes. It allows you to assess the profitability of your business, evaluate cost-efficiency, and make informed decisions about future investments or adjustments in your operations.
Log into your account and navigate to the Accounting section. Click the Business Mileage page:
Type your mileage usage for the month and then click "save." If you'd like to update the previous months' information, you can do it by clicking the pencil icon, updating the mileage tracked, and then clicking update:
You will be reminded that the previous month's mileage submission is required on your To-Do list:
If you are using the MileIQ app to track your miles, you can export a CSV file with the miles tracked and upload it directly to your Formations account by clicking the "Upload MileIQ CSV" button at the bottom of the page:
Before preparing your tax return, you will need to confirm that your Business Miles information is completed for the tax year.
Every January, a new button will appear in the Miles page for the previous year, asking you to Submit for the Year. Once you confirm the information is correct for the year, the data will be submitted for your return.
