One of the questions I get asked all the time is: What’s the best app to track your mileage? No matter the answer I give, the follow up question is: Is there an app that will do it all for me? That answer is No. No matter what app you use, it will require some intervention from you. With that being said, I want to share 5 Mileage Tracking apps (in no particular order) entrepreneurs can use to maximize their tax deductions. Some are free. Some require an investment, which MAY qualify as a business expense for you. You simply have to find the one that works best for you.
TaxPocket is a free app that was recently acquired by the National Association of Tax Professionals. The coolest feature of TaxPocket is that you can organize your information and send it to your tax professional. Don’t have a tax professional? No worries, you can find one on TaxPocket.
With TaxPocket, you can track your mileage and a host of expenses. You can also snap a picture of your receipts with your phone’s camera. TaxPocket allows for synching with QuickBooks and other expense tracking software. You can also receive important tax updates and notifications as well.
TaxPocket is a win/win for you and your tax professional.
MileIQ is free for the first 40 trips every month. Afterward, you can invest $5.99 per month or $59.99 per year. The MileIQ app comes with the following free features:
- Log every drive (in your personal or business vehicle) automatically
- Categorize drives as personal or business
- Classify the drives you track regularly as common
- Receive personalized miles logs and tracking reports which are stored in the cloud
- Built-in GPS to accurately log drives down to partial miles
After you finish each drive, you swipe right to categorize the ride as personal or business related. You can track expenses here as well, such as tolls and parking. You can program your work hours to auto-categorize your business miles. You can export the data to Freshbooks, or to a mileage tracker spreadsheet.
Everlance offers free usage as well as a premium account. As of this writing the premium account is $7.99/month or $59.99/year. Everlance is great for Uber or Lyft drivers, as well as the solo-preneur. Everlance features automatic trip detection. The app calculates mileage, trip start and end times, and reimbursement value. You must categorize whether a trip is business or personal. Everlance saves a mileage receipt that is backed up on the cloud. The cool feature in Everlance is that it supports multiple income sources.
TaxBot is a premium mileage and expense tracking app. It requires an investment of $9.99 per month. TaxBot is the “easy way to automatically track your mileage, digitally store receipts, and bulletproof your records against the IRS or Canada Revenue Agency.” It features automatic mileage tracking. You can classify the miles later on. TaxBot provides a map of your trip and allows you to track business or charitable miles. You can take pictures of receipts and store them digitally.
TaxBots coolest feature is that you can synch with your bank account to find missing expenses and deductions and import them into the app. You can print or save your reports to your computer or send them to your tax professional.
Hurdlr touts itself as the #1 app for Uber and Lyft drivers. Its features are similar to the other apps – automatic mileage tracking, earnings and expense tracking, tax deduction estimates, cloud storage, and payment alerts. The expenses are auto-categorized wherever possible, and you have the ability to split expenses across multiple categories.
The coolest feature of Hurdlr that I haven’t noticed elsewhere is that Hurdlr displays your tax liability – federal, state, and quarterly tax estimates. That is BOSS! There will be no surprises come tax time!
There are a host of other mileage apps. Leave a comment and let me know what others you use!
Share this if you got some value!