Welcome dlivrd Earning Partners!
As an independent delivery driver, you can reduce your tax bill by tracking and deducting your business mileage. Let’s catch you up on what mileage tracking is, the ways it can benefit you and why you need MileIQ.
What is MileIQ?
MileIQ is the #1 mileage tracking app designed to help independent contractors keep track of their business mileage for tax purposes. Its automatic tracking feature eliminates the need to log your mileage with a pen and paper. You can easily swipe right to classify the drive as tax-deductible. At tax time, the app will tell you exactly how many business miles you can write off to lower your taxable income and pay less in taxes.
MileIQ is currently offering Dlivrd drivers 20% off with code MIQDlivrd, which comes out to just $3.99 per month. Sign up here.
What Is Mileage Tracking?
Mileage tracking refers to the record keeping of all the miles you drive with your personal car for business purposes. In 2023, the IRS is allowing you to deduct business miles driven at 65.5 cents per mile which is a 7.5 cent increase from 2022. Don’t forget to keep an accurate mileage log that tracks all your business miles driven in case the IRS requests it at tax time.
What Counts As Deductible Mileage?
The IRS lets you deduct mileage for business, charity, moving and medical purposes. It’s understandable that there’s a cost associated with using your personal vehicle for business purposes. This is why you are able to collect a mileage reimbursement.
Let’s go over the specific cases that the IRS considers to be business drives:
- Customer visits / Client meetings
- Trips between offices or workplaces
- Traveling from home to a temporary job site outside of your permanent work location where you expect to work for no longer than a year
- Drives to and from odd jobs, such as babysitting
- Customer meals and entertainment
- Trips to the airport for business travel
- Drives for errands and to the store for supplies
Remember, however, that the IRS does not let you include your daily commute to work in the miles you are able to deduct. The location where you live relative to your workplace is considered a personal choice, so driving to work is not deductible.
How To Track Your Business Mileage
In order to receive your cash back, the IRS requires you to document your miles. You can do this by using a mileage log template, a handwritten log, or an easy to use mileage-tracking app like MileIQ. Millions of people rely on MileIQ because it provides automatic mileage tracking. With MileIQ, your smartphone will use Wi-Fi, GPS, and mobile data to track your business drives throughout the work week. Our mile-tracking app takes the tedious, detailed logging off your plate so that you don’t have to attempt to recall where you went, on what day, and for what purpose. This means you can focus on your business while making sure you’re getting the largest possible deduction for your mileage.
Is There A Maximum Mileage You’re Allowed To Claim?
In 2023, self-employed workers are able to write off business miles, while W2 employers are no longer able to do so in response to the tax reform bill of 2017. If you qualify for deductible mileage, luckily there is no set limit on how many miles you can claim on your deduction as long as they are supported by sufficient records and logs. With MileIQ, you can ensure that your drives are classified, your locations are named properly, and that every mile is organized in accordance to the time and date. If the IRS ever requested your mileage records, rest assured that MileIQ reports are IRS-compliant and accepted. Don’t forget! MileIQ is currently offering dlivrd drivers 20% off with code MIQDlivrd, which comes out to just $3.99 per month. Sign up here.