Tracking your miles for business travel can be a great way to get extra tax savings if you're self-employed.
Here's how to track it in Finaloop: Sign in to your account. On the left-side menu, select 'Money Savers,' then select 'Track Mileage' to report your business-related trips.
Which miles count?
Business miles you travel that are 'ordinary and necessary' for your business can be a write-off for tax. Some examples include meetings with customers or vendors or visiting a warehouse or post office to manage your shipments. For example, if your visiting a warehouse that's 20 miles away, you can deduct 40 miles - 20 for the way there and 20 for the way back.
How does the deduction work?
The IRS provides you 2 options to calculate your deduction for car expenses:
Actual expenses - parking & tolls, gas, vehicle insurance, vehicle lease payments, vehicle loan interest, registration, repairs, wash & road services.
Standard mileage - Standard mileage rate per mile + parking & tolls
For January 1 - June 30, 2022, the standard rate is 58.5 cents per mile. For July 1 - December 31, 2022, the rate is 62.5 cents per mile.