The Difference Between Standard Mileage Deduction and Actual Expenses
The Difference Between Standard Mileage Deduction and Actual Expenses When it comes to claiming vehicle-related expenses on your tax return, truck drivers have two primary options: the standard mileage deduction or the actual expense method. Choosing the right one can make a big difference in how much you save at tax time. For those navigating this decision, working with experts offering tax services for truck drivers can ensure you choose the most beneficial method based on your driving habits, records, and overall costs. Understanding the Standard Mileage Deduction The standard mileage deduction is a simplified way to claim vehicle expenses. Instead of tracking every individual cost associated with your truck—like fuel, oil, maintenance, and repairs—you simply multiply the number of business miles driven during the year by the IRS-set mileage rate. For 2024, the rate is 65.5 cents per mile, though it may vary each year. This method is easy to use and requires less documentation. It ...