2017 Tax Cuts Act: Impact on Families

The Tax Cuts and Jobs Act makes sweeping tax changes that impact virtually all taxpayers. For individual taxpayers and their families, changes include a decrease in the tax rates, repeal of the personal exemption, increase in the standard deduction, modification to itemized deductions, and doubling of the child tax credit.

Under the Tax Cuts and Jobs Act, personal exemptions are repealed ($4,050 in 2017) for 2018 through 2025. Instead, the Tax Cuts and Jobs Act provides for a near doubling of the standard deduction. For tax year 2018, it increases the standard deduction from $13,000 to $24,000 for married individuals filing a joint return; $9,550 to $18,000 for head-of-household filers; and $6,500 to $12,000 for all other individuals. These standard deduction amounts are indexed for inflation for tax years beginning after 2018. The additional standard deduction for the elderly and the blind ($1,300 for married taxpayers, $1,600 for single taxpayers) is retained.

Itemized deductions
Mortgage interest deduction. The Tax Cuts and Jobs Act limits the mortgage interest deduction to interest on $750,000 of acquisition indebtedness ($375,000 in the case of married taxpayers filing separately), for tax years beginning 2018 through 2025. For acquisition indebtedness incurred before December 15, 2017, the Tax Cuts and Jobs Act allows current homeowners to keep the current limitation of $1 million ($500,000 in the case of married taxpayers filing separately). Taxpayers may continue to include mortgage interest on second homes, but within those lower dollar caps. However, no interest deduction will be allowed for interest on home equity indebtedness.

State and local taxes. The Tax Cuts and Jobs Act limits annual itemized deductions for all nonbusiness state and local taxes deductions, including property taxes, to $10,000 ($5,000 for married taxpayer filing a separate return) for 2018 through 2025. Sales taxes may be included as an alternative to claiming state and local income taxes.

Miscellaneous itemized deductions. The Tax Cuts and Jobs Act repeals all miscellaneous itemized deductions for tax years 2018 through 2025 that are subject to the two-percent floor under current law.

Medical expenses. The Tax Cuts and Jobs Act lowers the threshold for the deduction to 7.5 percent of adjusted gross income (AGI) for tax years 2017 and 2018.

Casualty losses. For tax years 2018 through 2025, a casualty loss will only be allowed to the extent it is attributable to a federally declared disaster.

The phaseout of itemized deductions is suspended for tax years 2018 through 2025.

The doubling of the standard deduction and modifications to itemized deductions effectively eliminates many individuals from claiming itemized deductions other than higher-income taxpayers. For example, for the vast majority of married taxpayers filing jointly, only those with total allowable mortgage interest, state income and local income/property taxes (up to $10,000), and charitable deductions exceeding $24,000, would claim them as itemized deductions (absent extraordinary medical expenses).

In contrast, the enhanced child credit has been highlighted as one of the provisions that will lower overall tax liability for middle-class families. The Tax Cuts and Jobs Act temporarily increases the current child tax credit from $1,000 to $2,000 per qualifying child. Up to $1,400 of that amount is refundable. The child tax credit is also expanded to provide for a $500 nonrefundable credit for qualifying dependents other than qualifying children. More families will be able to take advantage of the credit due to an increase in the adjusted gross income phaseout thresholds, starting at $400,000 for joint filers ($200,000 for all others).

In addition to changes related to exemptions, the child tax credit and the standard and itemized deduction discussed above, the Tax Cuts and Jobs Act also makes changes to alternative minimum tax and the individual tax brackets. Because these tax provisions are interrelated, estimating the impact of these changes to the tax liability for any particular family is challenging. However, as with any tax reform, there will be winners and losers.

Example 1: Married Couple (both 45); AGI $100,000; 2 children (ages 8 and 12); mortgage interest $6,000; property tax $5,000; state income tax $3,000; charitable contributions $500

Example 2: Married Couple (both 45); AGI $200,000; 2 children (ages 19 and 22, both in college); mortgage interest $10,000; property tax $18,000; state income tax $6,000; charitable contributions $1,000

Example 3: Married couple (both 45); AGI $400,000; 2 children (ages 10 and 12); mortgage interest $12,500; property tax $25,000; state income tax $8,000; charitable contributions $7,500

(Click image for full size)

  1. Total itemized deductions in 2018 would remain the same at $14,500 which is less than the new standard deduction of $24,000.
  2. Deduction for total amount of property tax and sales tax would be limited to $10,000 in 2018. Therefore, total allowed itemized deductions of $21,000 would be less than the standard deduction of $24,000.
  3. Deduction for total amount of property tax and sales tax would be limited to $10,000 in 2018. Total allowed itemized deductions of $30,000 are not phased out and is more than the $24,000 standard deduction.

Keep in mind that many of the changes to the Internal Revenue Code in the Tax Cuts and Jobs Act are temporary. This is true especially with respect to the provisions impacting individuals. This decision was made in order to keep the tax reform within budgetary parameters, but with no guarantees that a future Congress would extend them. In future years, as the tax reform provisions expire, tax liability for individuals may be negatively affected.

2017 Tax Cuts Act: What it Means For Businesses

The Tax Cuts and Jobs Act was signed by President Trump on December 22. The Act makes sweeping changes to the U.S. tax code and impacts virtually every taxpayer. For businesses, tax benefits include a reduction in the corporate tax rate, increase in the bonus depreciation allowance, an enhancement to the Code Sec. 179 expense and repeal of the alternative minimum tax. Owners of partnerships, S corporations, and sole proprietorships are allowed a temporary deduction as a percentage of qualified income of pass-through entities, subject to a number of limitations and qualifications. On the other hand, numerous business tax preferences are eliminated.

Corporate Taxes
A reduced 21-percent corporate tax rate is permanent beginning in 2018. Also, the 80-percent and 70-percent dividends received deductions under current law are reduced to 65-percent and 50-percent, respectively. The Tax Cuts and Jobs Act also repeals the alternative minimum tax on corporations.

Bonus Depreciation
The bonus depreciation rate has fluctuated wildly over the last 15 years, from as low as zero percent to as high as 100 percent. It is often seen as a means to incentivize business growth and job creation. The Tax Cuts and Jobs Act temporarily increases the 50-percent “bonus depreciation” allowance to 100 percent. It also removes the requirement that the original use of qualified property must commence with the taxpayer, thus allowing bonus depreciation on the purchase of used property.

Section 179 Expensing
The Tax Cuts and Jobs Act sets the Code Sec. 179 dollar limitation at $1 million and the investment limitation at $2.5 million. Although the differences between bonus depreciation and Code Sec. 179 expensing would now be narrowed if both offer 100-percent write-offs for new or used property, some advantages and disadvantages for each will remain. For example, Code Sec. 179 property is subject to recapture if business use of the property during a tax year falls to 50 percent or less; but Code Sec. 179 allows a taxpayer to elect to expense only particular qualifying assets within any asset class.

Deductions and Credits
Numerous business tax preferences are eliminated. These include the Code Sec. 199 domestic production activities deduction, non-real property like-kind exchanges, and more. Additionally, the rules for business meals are revised, as are the rules for the rehabilitation credit. However, the Tax Cuts and Jobs Act leaves the research and development credit in place, but requires five-year amortization of research and development expenditures. It also creates a temporary credit for employers paying employees who are on family and medical leave.

Interest Deductions
In an attempt to “level the playing field” between businesses that capitalize through equity and those that borrow, the Tax Cuts and Jobs Act generally caps the deduction for net interest expenses at 30 percent of adjusted taxable income, among other criteria. Exceptions exist for small businesses, including an exemption for businesses with average gross receipts of $25 million or less.

Pass-Through Businesses
Currently, up to the end of 2017, owners of partnerships, S corporations, and sole proprietorships – as “pass-through” entities – pay tax at the individual rates, with the highest rate at 39.6 percent. The Tax Cuts and Jobs Act allows a temporary deduction in an amount equal to 20 percent of qualified income of pass-through entities, subject to a number of limitations and qualifications.

The Tax Cuts and Jobs Act contains rules that will prevent pass-through owners—particularly service providers such as accountants, doctors, lawyers, etc.—from converting their compensation income taxed at higher rates into profits taxed at the lower rate.

Net Operating Losses
The Tax Cuts and Jobs Act modifies current rules for net operating losses (NOLs). Generally, NOLs will be limited to 80 percent of taxable income for losses arising in tax years beginning after December 31, 2017. It also denies the carryback for NOLs in most cases while providing for an indefinite carryforward, subject to the percentage limitation.

These are just highlights of the changes and impact of the Tax Cuts and Jobs Act. There is much more than can be covered in this post.

Establishing Profit Motive for Business Activities

If you reported losses from one or more business activities, we would like to remind you that the IRS has rules that limit the deductibility of expenses and losses from a hobby or activity not engaged in for profit.


If the IRS determines that an activity is not profit-driven, deductions from the activity are limited to the amount of income the activity generates. Losses from such activities cannot be used to offset other income, such as salary or investments.

 

You must be prepared to show that an activity that generates deductions is a business from which you intend to profit. It is not necessary that the activity actually earns a profit, so long as a profit is one of the motives for participating in the activity.

 

The IRS assumes that an activity is carried on for profit if it makes a profit during at least three of the last five tax years, including the current year, or at least two of the last seven years for activities that consist primarily of breeding, showing, training or racing horses. Otherwise, the IRS applies non-exclusive tests and factors to the surrounding facts to judge whether activities are more like a business with a profit motive, or are for personal satisfaction.

 

To make sure you are properly claiming all of the deductions available to you, and to strengthen your position in the event of an IRS audit, it is important to consider all the facts and circumstances surrounding activities the IRS is likely to challenge.

10 Million Taxpayers Face an Estimated Tax Penalty Each Year; Act Now to Reduce or Avoid it for 2017

The IRS has seen an increasing number of taxpayer’s subject to estimated tax penalties, which apply when someone underpays their taxes. The number of people who paid this penalty jumped from 7.2 million in 2010 to 10 million in 2015, an increase of nearly 40 percent. The penalty amount varies, but can be several hundred dollars.

The IRS urges taxpayers to check into their options to avoid these penalties. Adjusting withholding on their paychecks or the amount of their estimated tax payments can help prevent penalties. This is especially important for people in the sharing economy, those with more than one job and those with major changes in their life, like a recent marriage or a new child.

There are some simple tips to help taxpayers:

Having enough tax withheld or making quarterly estimated tax payments during the year can help you avoid problems at tax time.

Taxes are pay-as-you-go. This means that you need to pay most of your tax during the year, as you receive income, rather than paying at the end of the year.

There are two ways to pay tax:

Withholding from your pay, your pension or certain government payments, such as Social Security.

Making quarterly estimated tax payments during the year.

This will help you avoid a surprise tax bill when you file your return. You can also avoid interest or the Estimated Tax Penalty for paying too little tax during the year. Ordinarily, you can avoid this penalty by paying at least 90 percent of your tax during the year.

Why you should change your withholding or make estimated tax payments:

If you want to avoid a large tax bill, you may need to change your withholding. Changes in your life, such as marriage, divorce, working a second job, running a side business or receiving any other income without withholding can affect the amount of tax you owe. And if you work as an employee, you don’t have to make estimated tax payments if you have more tax withheld from your paycheck. This may be a convenient option if you also have a side job or a part-time business.

Some income is not subject to withholding. This includes some income from self-employment, the sharing economy or some rental activities. Be sure to make estimated tax payments on those sources of income throughout the year. You may also make estimated tax payments if the withholding from your salary, pension or other income doesn’t cover your income tax for the year.

You make your estimated payments based on the income you expect to earn and any credits you expect to receive in the year. You can use your prior year tax return as a guide and Form 1040-ES, Estimated Tax for Individuals has a worksheet to help you figure your estimated payments.

You can use estimated tax payments to pay both income tax and self-employment tax (Social Security and Medicare).

Tax Consequences for Self-Employed Individuals

Owning your own business can be very rewarding, both personally and financially. Being the sole decision-maker for this important undertaking can also be overwhelming.

Business owners have many choices to make, and these decisions involve tax consequences that are not always foreseen. We can help you minimize your overall tax burden by identifying and maximizing business deductions, providing guidance on substantiation of expenses, and exploring tax planning alternatives that are uniquely available to the self-employed.

Some frequently overlooked business expenses that you may be able to deduct include moving expenses, costs of travel away from home, entertainment expenses, and expenses related to a home office. Code Sec. 179 expense allowances on the purchase of new equipment can provide a significant deduction. In addition, there are multiple benefits when you employ your spouse, child, or other family member in the business.

There are some risks involved in adopting tax positions related to operating a business as an independent contractor. For example, the distinction between employee and independent contractor is an issue the IRS subjects to special scrutiny. As a self-employed individual, you must comply with these rules for yourself or for any workers that you hire.

If you are an employer, you must withhold income and employment taxes from an employee’s income. However, if your workers are independent contractors, you are only required to report payments of $600 or more on a Form 1099-MISC, Miscellaneous Income. Failing to make the right classification, however, could result in additional taxes, interest and penalties.

The IRS offers an amnesty program called the Voluntary Classification Settlement Program (VCSP) to encourage employers to reclassify their workers as employees for employment tax purposes for future tax periods. Under the VCSP, employers are allowed to prospectively treat the workers as employees at a cost that is 10 percent of what is normally owed in a worker misclassification situation.

Complex rules and calculations are involved in many of the planning opportunities that are available to you. We will be happy to review your overall tax scenario in order to maximize your tax savings. Please contact our office at your earliest convenience to make an appointment.

Tax Issues for Higher-Income Individuals

We know that you have worked hard for your money and would like to reap the benefits to the greatest extent possible. Your ultimate goal is to sustain a successful wealth-building strategy while avoiding unnecessary and expensive tax consequences. We are interested in helping you achieve these objectives.

For the last few years, there has been talk of major tax reform that would place an increased tax burden on higher income individuals. President Trump proposed a tax reform plan that would reduce individual tax rates, abolish the alternative minimum tax (AMT) and federal estate tax, and more. Individual rates under the President’s proposal would be 10, 25 and 35 percent. At the same time, the President proposed to double the standard deduction and protect the home ownership and charitable gift tax deductions. The President also proposed to provide unspecified tax relief to families with children and dependents. The President’s proposal calls for a 15 percent corporate tax rate. The 15 percent rate would also be available to small and mid-size pass-through businesses, White House officials said.

Further, the President called for elimination of unspecified tax breaks for special interests. Democrats in Congress said the President’s plan favored high-income taxpayers and did not deliver enough tax breaks to lower and middle-income taxpayers. As tax reform moves into the latter half of 2017, the chances of a retroactive tax cut to include the 2017 tax year are lessened but not entirely removed from consideration. Tax planning for the balance of the year therefore should remain flexible.

Some of the issues that may impact your tax planning strategy for 2017 include:

  • your marginal tax rate;
  • personal exemption and itemized deduction phaseouts;
  • additional 0.9 percent Medicare tax on wages and self-employment income over threshold amounts;
  • net investment income tax of 3.8 percent for taxpayers with modified AGI exceeding threshold amounts;
  • a capital gain rate of 20 percent for taxpayers in the highest tax bracket;
  • gain exclusion for small business stock held for more than 5 years;
  • foreign account disclosure and reporting requirements and related enforcement penalties;
  • in-service rollovers to designated Roth accounts without the imposition of a 10-percent additional tax on early distributions;
  • IRA distributions to charity of up to $100,000;
  • strict rules about deducting passive activity losses (PALs); and
  • alternative minimum tax (AMT).

As you can see, the more complex issues faced by higher-income individuals create a challenging planning environment for the 2017 tax filing season.

 

Credit breach

Howdy! I’ve compiled this post in hopes it helps our clients who may be impacted by the recent Equifax security breach… I’m not a financial advisor nor an expert in all things credit. But I’ve been doing a lot of research and wanted to share with you what I’ve learned! 

— Denise

By now you probably have heard about the big security breach of Equifax, where some 143 million credit records were potentially stolen. And by “credit records” I mean Social Security, driver’s license and credit card numbers.

Do you know if you’re one of those “lucky” 143 million people? If not, I highly recommend you visit https://www.equifaxsecurity2017.com to find out. Scroll to the bottom of the page and choose, “Potential Impact” which will take you to this screen:

Click “Potential Impact” one more time. It’ll take you to this screen, where you need to fill out two simple things: your last name and the last six digits of your social security number. Note: if you’ve recently gotten married and are going by your spouses’ last name, but you’ve not filed a name change with anyone yet, you’ll want to put your maiden name.

Now, hope you DON’T get this message:

But if you do, congratulations! Your credit is at risk. Oh wait, that’s not something to be happy about. Sorry…

So… now what?

Well, you have a lot of options, including do nothing – but that’s not the option I’d recommend.

First off, Equifax is offering free enrollment in their “Trusted ID Premier.” Now, granted, a part of me is leery of trusting the guys who put me at risk to now keep me safe, but it’s SOMETHING. TransUnion and Experian offer similar programs.

By the way, as if this couldn’t get any better, scammers are also sending phishing emails trying to get information by posing as the credit bureaus wanting to help you. So make sure you double and triple check anything you get in email for its legitimacy.

Speaking of the other two bureaus, though, this is an excellent reminder to check your credit reports! Did you know you get to check them for free once a year? I knew that, but I just never actually do it. Shame, shame, right? Especially since its FREE, and it could save me a lot of heartache down the road when I want to apply for a mortgage or buy a new vehicle.

Head on over to annualcreditreport.com and request your credit reports. Now, keep in mind, I did this yesterday, and due to the volume of traffic to Equifax’s site, I could not pull that one. But I did get to review my other two credit reports.

IF YOU FIND SOMETHING… you need to take the steps to get any incorrect information removed. If you suspect Identity Theft, head over to IdentityTheft.gov. Otherwise, you’ll need to start the process of contacting the credit bureaus and having things removed. All the information how to do this is on all three credit bureau’s websites. (Equifax, Experian, Transunion) I’ve had to do this once, and it was a simple letter submitted to the credit bureau that took care of everything. I think you can do it online now, though. It’s not hard, its just time consuming. You’ll need to have patience as you go through this.

Many people I know are choosing to put a freeze on their credit.

What does this mean? Well, I’m glad you asked because I asked the SAME THING.

Directly from the FTC website:

“Also known as a security freeze, this tool lets you restrict access to your credit report, which in turn makes it more difficult for identity thieves to open new accounts in your name. That’s because most creditors need to see your credit report before they approve a new account. If they can’t see your file, they may not extend the credit.” https://www.consumer.ftc.gov/articles/0497-credit-freeze-faqs

Important things to note: a credit freeze does not stop you from using your current lines of credit, nor does it stop thieves from stealing current credit information. So you’ll still need to monitor your current credit card statements and bank statements for fraudulent charges. Like that person who decided to try to buy $500 worth of clothes in a boutique in Florida, but luckily your card is maxed out already so they were declined but you still need to destroy your current card and get a new one. Oh wait, that was me. But you get the idea.

SO how do you freeze your credit? Well, you’ll have to contact ALL THREE credit bureaus to do so. Also from the FTC:

Equifax — 1-800-349-9960
Experian — 1 888 397 3742
TransUnion — 1-888-909-8872

You’ll need to supply your name, address, date of birth, Social Security number and other personal information. Fees vary based on where you live, but commonly range from $5 to $10.

After receiving your freeze request, each credit reporting company will send you a confirmation letter containing a unique PIN (personal identification number) or password. Keep the PIN or password in a safe place. You will need it if you choose to lift the freeze.

Keep in mind, freezing credit won’t be the answer for everyone. If you know you’re about the buy a house, need to set up utilities at a new home or apartment, or perhaps your job requires checking your credit (yeah, that happens), you may want to think twice about it. While you can thaw your credit when you need it, you could be looking at expense and time lost doing so…

If you do not freeze your credit, what else can you do?

Keep a close watch in your credit.

Many credit cards offer credit score updates and credit monitoring as part of their services. For example, Capital One offers CreditWise, Discover offers a FICO Credit Scorecard (and recently started offering credit monitoring), Bank of America and Chase also offer FICO monitoring. Many include it in their apps, so you can check your credit from your phone regularly. While this may not be as pro-active as a credit freeze, it’ll allow a faster response and resolution to any identity theft issues.

FILE YOUR TAX RETURN EARLY.

You knew we’d get to this eventually, right?

Look, we’ve dealt with many clients who have had identity theft happen. We’ve dealt with clients whose CHILDREN have had identity theft happen. This is not fun for anyone! Suddenly your tax return is being rejected. You can’t claim your dependents because someone else already did. And now you have to file a paper return, and you need special PIN numbers and… oh my goodness it’s a headache for all involved.

So that’s why we urge anyone potentially impacted by this breach to plan on filing their tax return as early as possible in 2018. The sooner you file, the less likely it is that a thief can file a fraudulent return under your name and SSN to claim a refund. It’s not a guarantee, but its worth trying.

There are countless articles coming out daily with advice on how to handle this Equifax breach. Keep on top of those articles through Google News here: https://news.google.com/news/search/section/q/equifax/equifax?hl=en&ned=us

In this modern technology-driven age we’re facing these sort of security breaches and invasions of privacy all the time. I’m certainly not an expert on all of this, but I’ve been trying to keep up with the latest and hope this post helps our clients at least have a place to start in dealing with this issue.

Declared Natural Disasters and Emergencies Tax Help

When natural disasters occur, as has happened recently with Hurricanes Harvey and Irma, the last thing you want to stress over is filing taxes. The Comptroller’s office understands, and they have compiled information for evacuees and relief workers on how to request an extension for reporting and paying taxes.

Follow this link to see all your options if you are one of the thousands affected:

https://comptroller.texas.gov/taxes/resources/disaster-relief.php

 

New phone scam warning from the IRS


The Internal Revenue Service today warned people to beware of a new scam linked to the Electronic Federal Tax Payment System (EFTPS), where fraudsters call to demand an immediate tax payment through a prepaid debit card. This scam is being reported across the country, so taxpayers should be alert to the details.

In the latest twist, the scammer claims to be from the IRS and tells the victim about two certified letters purportedly sent to the taxpayer in the mail but returned as undeliverable. The scam artist then threatens arrest if a payment is not made through a prepaid debit card. The scammer also tells the victim that the card is linked to the EFTPS system when, in fact, it is entirely controlled by the scammer. The victim is also warned not to contact their tax preparer, an attorney or their local IRS office until after the tax payment is made.

“This is a new twist to an old scam,” said IRS Commissioner John Koskinen. “Just because tax season is over, scams and schemes do not take the summer off. People should stay vigilant against IRS impersonation scams. People should remember that the first contact they receive from IRS will not be through a random, threatening phone call.”

EFTPS is an automated system for paying federal taxes electronically using the Internet or by phone using the EFTPS Voice Response System. EFTPS is offered free by the U.S. Department of Treasury and does not require the purchase of a prepaid debit card. Since EFTPS is an automated system, taxpayers won’t receive a call from the IRS. In addition, taxpayers have several options for paying a real tax bill and are not required to use a specific one.

Tell Tale Signs of a Scam:

The IRS (and its authorized private collection agencies) will never:

  • Call to demand immediate payment using a specific payment method such as a prepaid debit card, gift card or wire transfer. The IRS does not use these methods for tax payments. Generally, the IRS will first mail a bill to any taxpayer who owes taxes. All tax payments should only be made payable to the U.S. Treasury and checks should never be made payable to third parties.
  • Threaten to immediately bring in local police or other law-enforcement groups to have the taxpayer arrested for not paying.
  • Demand that taxes be paid without giving the taxpayer the opportunity to question or appeal the amount owed.
  • Ask for credit or debit card numbers over the phone.

For anyone who doesn’t owe taxes and has no reason to think they do:

  • Do not give out any information. Hang up immediately.
  • Contact the Treasury Inspector General for Tax Administration to report the call. Use their IRS Impersonation Scam Reporting web page. Alternatively, call 800-366-4484.
  • Report it to the Federal Trade Commission. Use the FTC Complaint Assistant on FTC.gov. Please add “IRS Telephone Scam” in the notes.

For anyone who owes tax or thinks they do:

The IRS does not use email, text messages or social media to discuss personal tax issues, such as those involving bills or refunds.

For more information, visit the “Tax Scams and Consumer Alerts” page on IRS.gov. Additional information about tax scams is available on IRS social media sites, including YouTube videos.

========

Information from :  https://www.irs.gov/uac/newsroom/irs-warns-of-new-phone-scam-involving-bogus-certified-letters-reminds-people-to-remain-vigilant-against-scams-schemes-this-summer

Making mileage tracking easier

One of the biggest struggles we find as tax preparers is helping clients track their mileage each year. It’s hard to remember when you get in your vehicle to write down your mileage! However, writing off business or medical mileage is a great way to help you save on your tax bill.

Earlier last year, we were given the opportunity to test the unlimited version of the smartphone app MileIQ for possible promotion as a way to help our clients track their mileage. Having tested other apps and finding the lacking, we accepted the offer somewhat skeptically.

Much to our (pleasant!) surprise, we were presented a solid app that helps us track our mileage without even thinking about it.

So how does it work?

MileIQ runs in the background of your smartphone at all times and it detects when you’re traveling and where you travel through GPS technology. It does the majority of work for you. All you have to do is classify drives afterwards as personal or business with the swipe of your finger. You can further classify drives as what you were doing exactly (for example, shopping, doctors visits, client visits, meetings, etc.) and what vehicle you were in, if you have multiple vehicles.

You can choose to have the app send you a notification when you have drives to categorize, or you can just remember periodically to go back into your app and doing several days worth of drives at once.

As you categorize drives, you’ll see a running total at the top of the screen as to how much money you’ve “made” driving, and how many miles you’ve gone over time. At the end of the year, you can run a log of the year to submit with your taxes.

It’s without a doubt the most simple and efficient way we have personally found for logging mileage.

Now keep in mind, all good things do come at a cost. There is a free version of this application available, but it limits the number of drives it will log for you in a month. So if you travel a lot, the free version will leave you hanging… especially when you realize you could have multiple drives in a day.

The unlimited version costs $59.99 per year, or $5.99 a month. But as our client, we can offer you a 20% discount off the yearly plan if you use promo code MSCH227A.

MileIQ is available for both iPhone and Android systems.

 Disclaimer: We received this product for free in exchange for an unbiased review and promotion to our clients. The opinions and all statements in this review are 100% our own, and we do not receive compensation for this review.

css.php
%d bloggers like this: