We live on Twitch, we’re all hermetical shut-ins, right? Despite that stereotype, you likely do some driving that you wouldn’t normally do if you weren’t streaming. You may be going to a local meetup, a conference, or just taking a meeting that requires a bit of a drive. If so, you should document how many miles you travel.
Why would I track miles?
Considering it’s a bit of a pain to remember and actually log your miles, why would you do it? There’s an easy answer: if you drove somewhere you wouldn’t normally have because of your business you can get a deduction. That deduction will save you on taxes!
For instance, this year I’m going to be driving to TwitchCon. That’s several hundred miles and therefore several hundred dollars I’ll be saving on taxes. Think about it: if I weren’t driving I’d be flying which would be a business expense. Why wouldn’t the car also be one?
Where should I track miles?
First, you can track your miles on your own and enter them in to your accounting software. For instance, if I’m driving to Santa Monica for an event I use the distance Google Maps shows for how far I’m driving. That way, it’s nice and easy.
You could also use your car’s odometer to track separate trips so it’s easy to see how much you traveled. I’m not a huge fan of that method only because I always forget to check/reset it.
If you use Quickbooks for your accounting then you’re in luck! They have a mileage tracking app that syncs nicely with Quickbooks. It makes life pretty easy. Additionally, you could look at other apps like MileIQ to track more easily.
How much do I get for tracking my miles?
In 2018 the federal reimbursement rate for miles is 53.5 cents per mile. That means a 100 mile trip gets you a $53.50 deduction! That can add up fast.
You can also document your actual cost. If you’re diligent enough to get the proportion of your costs that truly applied to your business trip you can use that amount instead. The mileage reimbursement is designed to account for most of the things that would go in to that cost but hey, if your actual cost is higher than the mileage calculation use that number.
Conclusion
If you do even modest driving tracking your miles can save you a couple of hundred dollars in taxes. You’re costing yourself some money if you aren’t diligent enough to track your miles. It’s not that hard!
You don’t have to figure this out alone. This is what we do- help streamers make great money decisions. If that’s something that sounds interesting to you reach out me or schedule some time for a free consult. You can check out what I do here.
