Did you know that the IRS Standard Mileage Deduction for operating your car for business in 2018 is 54.5 cents per mile? It’s true. If you drive for Lyft or Uber, you may be able to deduct some of your expenses on your taxes. But, if you’re going to do it, you need to know how to track your ride sharing expenses for tax purposes.
Typically, one of the biggest items you need to track is your mileage. Regardless of whether you intend to deduct all of your actual expenses or use the standard mileage rate deduction, you need to know exactly how far you’ve driven.
Luckily, there are a number of apps that can make mileage tracking easy. If you’re looking for rideshare mileage tracking apps, give these a try.
Usually, when you drive for a rideshare company, you’re a contractor. This effectively makes you self-employed.
The QuickBooks Self-Employed app and software package can help you track all of your expenses, including your mileage. The app comes with an automatic mileage tracker built right into the design. It doesn’t use much data or battery life and can even help you determine whether your actual expenses or the standard deduction gets you the largest deduction.
It’s important to note that you do have to purchase Quickbooks Self-Employed to use the app. However, even that expense might be tax-deductible, helping to offset the cost.
Stride Tax To Assist With How to Track Ride Sharing Expenses for Taxes
If you’re looking for free rideshare mileage tracking apps, consider Stride Tax. You can run the app while you drive, allowing it to record your mileage for each trip. It also allows you to log receipts and other expenses, creating solid records for tax time.
The app even has categories that apply specifically to rideshare drivers, helping to make sure you don’t miss any potential deductible expenses.
Another free option is Hurdlr. The app lets you track mileage and other expenses, and even offers automatic mileage recording. It’s highly accurate when it comes to tracking your mileage, but you do have to fend off ads for the premium version when you use it. Additionally, it pulls more data than some of the others, which isn’t ideal if you have a data cap.
TripLog 2.0 has free and paid versions of the app available. The free option is fairly basic, but the paid version isn’t overly expensive.
Not only can you track your mileage, but it will also help you find cheap gas stations in your area. This can be incredibly helpful if you drive through unfamiliar parts of town during your travels.
Ultimately, any of the apps above can do the job. However, QuickBooks Self-Employed is a more robust option, particularly when it comes to anticipating your quarterly tax payments. But, if you want to avoid paying for access, consider the free versions of the others. They can help you track your mileage more efficiently, ensuring you get the deduction you deserve.
Are you a rideshare driver? Do you have rideshare mileage tracking apps that you adore? Tell us about it in the comments below.
Looking for more information about taxes? Check out the articles below:
- Which Tax Records Should You Keep After Your File?
- What’s the Deal with the New Tax Law?
- Why You Need a Retirement Plan Now