Just realized my mileage tracking app was costing me big deductions

An accountant at a coffee shop in Austin told me I was using the wrong method for my car expenses. She showed me how the standard rate gives me way more back than I was claiming. Has anyone else found out they were doing mileage wrong?

4 comments

4 Comments

mason.drew5d ago

Switched to the standard rate last year and got double the deduction.

henry1505d agoMost Upvoted

Not sure I buy that @mason.drew. Standard rate usually means you lose out on all the itemized stuff. Like medical bills, charitable gifts, property taxes. If you have any of those big expenses the standard deduction actually costs you money. Nice if it worked out for you but most people I know who tried it ended up going back to itemizing.

sanchez.ivan4d ago

But @mason.drew, what kind of numbers are you talking about for that to happen?

torres.riley1d ago

Same thing happened to me last year @mason.drew. Was using the actual expense method for years and an accountant friend looked at my return and said I was leaving money on the table. Switched to the standard mileage rate and my deduction jumped by almost 40 percent. Had no idea I could claim parking and tolls on top of the standard rate either. Made a huge difference for my bottom line.