There are all kinds of different deductions that can be taken to decrease the amount of taxes that you pay to the federal government, but your tax resolution expert would like to discuss one deduction in particular. The amount of mileage it takes to go to and from different types of activities is not a commonly used deduction, but it can save taxpayers a considerable amount of money.
First, your tax resolution expert wants you to know what kinds of activities qualify for this deduction. Some common activities include medical visits, cars used for business, charitable trips, and even moving expenses can fall under the mileage deduction.
Second, your tax resolution expert wants you to know how you can claim this deduction. It most involves taking good records of all the qualifying trips you go on. For instance, if you have a medical issue that requires frequent visits to the doctor, you have to write down the vehicle’s mileage before the trip and after the trip. You also have to include the date and reason for the visit. While it can be a lot of information to consider, it is necessary information to keep if you are going to claim this benefit.
Third, you have to make sure that you account for the miles correctly. Your tax resolution expert can help you understand exactly what your miles are worth. For 2014, the standard mileage for business expenses is 56 cents for every mile traveled. If the trip is medical or moving expense, it is figured differently. You would be able to claim 23.5 cents for every mile driven. Finally, if the trip is a charitable expense, the government allows you to deduct 14 cents for every mile that you drive for a charity.
As you can tell, these expenses can be difficult to calculate. That is why a competent tax resolution expert on your side can help you claim all the deductions you are eligible to receive.