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A Self-Employed Guide To The IRS Mileage Rate In 2023 vs 2024

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A Self-Employed Guide To The IRS Mileage Rate In 2023 vs 2024

For self-employed individuals, mileage deductions can significantly lower taxable income, leading to big tax savings. But to get the most out of these deductions, you need to be on top of tracking and calculating every mile you drive. With the IRS enforcing strict rules about keeping detailed records, frequent mileage tracking can be a game-changer. It’s also important for gig workers (Uber Eats drivers, Lyft drivers, Doordash drivers, Postmates drivers) and self-employed individuals who use their vehicles a lot to keep up with the latest news about mileage deductions. This guide will take you through the IRS mileage rate for 2023, the IRS mileage rate for 2024, how to calculate your vehicle mileage both manually and with a mileage calculator and vehicle-related deductions that can reduce your self-employment taxes.

Table of contents

What is the current IRS mileage rate?...Read more

How to calculate mileage for 2024?...Read more

Tracking mileage with a mileage log...Read more

Mileage-related tax deductions...Read more

What is the current IRS mileage rate?

The IRS standard mileage rate for 2024 is set at 67 cents/mile for business use. The rates change every year as they are adjusted for inflation. The federal mileage rate for business covers more than just gas—it can include repairs, insurance and other related expenses. For medical or moving purposes and charitable work, the rate is generally lower, as these trips are made for different reasons.
Infographic entitled What Is The IRS Mileage Rate For 2023 vs 2024 listing the updated vehicle mileage rates.

How to calculate mileage for 2024?

There are two ways self-employed individuals can calculate mileage – the standard mileage method or the actual expenses method.

Standard mileage method

Actual expenses method

What counts as business mileage?

Tracking mileage with a mileage log

Keeping a solid mileage log is key when it comes to playing by the IRS's rules. It's all about making sure you've got the right numbers on how many miles you've clocked up for work, medical trips or doing good deeds. Having a good log not only helps you claim mileage deductions with the current mileage rate but also reduces the chances of any IRS hassle down the road. So, what should you include in this log? Firstly, the date of each trip. That way, you've got a clear timeline of where you've been and when. Don't forget to mark down why you were hitting the road – whether it was for work, getting to the doctor's or lending a hand. For work trips, make a note of the purpose of the drive. You'll also need to keep track of how many miles you've driven. You can either note the starting and ending mileage for each trip or just write down the total miles. Be sure to include both the starting point and your destination – it helps give context to your trips. If you paid any tolls or parking fees along the way, it's worth making a note of those too, even though they're not a must for mileage deductions. Make a habit of updating it regularly to avoid missing anything or making mistakes. Whether it's a quick scribble every day or a weekly catch-up, staying on top of it keeps your records accurate and up-to-date. When it comes to organizing your log, keep it simple. Group things by date and what the trip was for. It makes sorting out your taxes a breeze and means you can easily lay your hands on specific records if you need it. Self-employed individuals can also consider using a mileage tracker app. They do all the hard work for you, plus they often come with extras like backing up your logs in the cloud so you don't have to stress about losing your records. The IRS recommends keeping these logs for at least three years from when you file your tax return.
 Infographic entitled What Goes In A Mileage Log listing important details for taking the mileage deduction with the IRS mileage reimbursement rate.

2024 Tax Filing

The tax filing deadline for the 2024 tax year is April 15, 2025. This is also the last day to file a tax extension. FlyFin is the best online tax filing tool for the self-employed.

2024 Tax Laws

Tax laws are always changing. FlyFin’s expert CPAs can monitor these changes and help you navigate them while handling your filing process and lowering your tax bill.

2024 Tax Brackets

Explore the changes in 2024 tax brackets and rates. Learn how they impact your finances, with insights on federal and state taxes, deductions, and effective tax rates.

2024 Estimated Tax Payments

Self-employed individuals have to make estimated tax payments to the IRS if they owe over $1,000. These payments are due throughout the year. Missing them can lead to penalties.

Tax Brackets - 2023 Vs 2024

The new 2024 tax brackets have higher income thresholds as they are adjusted for inflation. Freelancers can lower their tax bracket by writing off business deductions.

2024 Self employment Tax

Self-employment tax is paid by self-employed individuals who earn over $400. The self-employed tax rate is 15.3% of net earnings. Use tax deductions to lower taxes.

2024 Tax Credits

Tax credits reduce tax liability. There are many tax credits available to taxpayers. FlyFin’s CPAs can help you navigate the process.

2024 Tax Filing

The tax filing deadline for the 2024 tax year is April 15, 2025. This is also the last day to file a tax extension. FlyFin is the best online tax filing tool for the self-employed.

2024 Tax Laws

Tax laws are always changing. FlyFin’s expert CPAs can monitor these changes and help you navigate them while handling your filing process and lowering your tax bill.

2024 Tax Brackets

Explore the changes in 2024 tax brackets and rates. Learn how they impact your finances, with insights on federal and state taxes, deductions, and effective tax rates.

2024 Estimated Tax Payments

Self-employed individuals have to make estimated tax payments to the IRS if they owe over $1,000. These payments are due throughout the year. Missing them can lead to penalties.

What’s FlyFin?

FlyFin caters to the tax needs of freelancers, gig workers, independent contractors and sole proprietors. But anyone can file taxes through FlyFin! FlyFin tracks all your business expenses automatically using A.I. technology. Then, our CPA team files a guaranteed 100% accurate tax return for you – to save you a couple thousand dollars and a ton of time on your taxes. In addition, you can download the FlyFin app and have your taxes filed in less than fifteen minutes, saving time and money.
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