6 financial benefits to tracking your vehicle mileage

No matter how much or how little you drive, every mile comes with a cost. By tracking the miles you drive, you can save yourself money in the long run.

1. Early warning

Tracking the mileage of your vehicle can give you early warning of mechanical problems with your car. By dividing the number of miles driven by the number of gallons of fuel during a fill-up, you can get a feel for the average mileage of your vehicle, and get early warning when it starts going downhill. Catching mechanical problems early can save you thousands of dollars.

2. Write off medical miles

The miles you put on your vehicle driving to and from medical appointments can be deducted from your taxes. This includes vision, doctor appointments and and dentist appointments.

3. Writing off charity

Any miles you put on your vehicle for charitable purposes can be written off on your taxes as well. The exact value of miles can vary year to year, so be sure to check the current IRS rate when you do your taxes.

4. Educational expenses

Traveling to and from classes or educational events can be deductible on your taxes or included as a part of your “educational expenses” for student loans. Actual mileage rates may vary state-to-state, but check with the state government or the IRS for state mileage remuneration rates.

5. Moving miles

The miles you drive while moving, especially if you move for work, can be deductible on your taxes. This not only involves driving city-to-city, it also includes any miles you drive while house-hunting or moving your items.

6. Save money on insurance

Some insurance providers will base part of your insurance cost on the number of miles you drive, on average. Tracking your mileage and being able to show those records can help reduce your insurance cost if the number of miles driven is less than the number of miles you estimated while applying for insurance.

Record-keeping requirements

In order to track your mileage completely, you should record times, dates, location and purpose. There are plenty of free apps to do this, or keep a notebook and pen in your glove box in order to keep the records.

Sources

Washington Post
Liberty Tax
AutoInsuranceQuote.com