Video instructions and help with filling out and completing Why Form 5495 Mileage

Instructions and Help about Why Form 5495 Mileage

Music hi and welcome to the Everlast channel this is episode 2 and this week we're talking about the 2021 standard mileage rate that just came out this week from the IRS as well as the question of the week from jacob which is the difference between standard and actual mileage so now that the 2021 IRS standard mileage rate is out we see some different mileage rates for work we see 53 and a half cents for medical and moving we see 17 cents and for charity we see we see 14 cents per mile as you can see these rates have actually decreased from 2021 and this is because of the standard deduction calculation of the IRS takes in place which includes maintenance car gas oil repairs and all these they've calculated in that they've kind of depreciated even this year so the question of the week hey what the difference between standards and extra mileage so the standard mileage rate is as we talked about the calculation of the IRS makes and so apps like ours or other my like tracking apps actually use standard mileage rates and so they've already calculated into the app and all you need to show is a record of the date of the time as well as the mileage so the trip destinations there and then the calculation will are to be brought in so if it's a work deduction and you've driven one mile then it'd be fifty three and a half cents for 2021 so now we have actual deductions this is different from the standard deduction where the standard deduction has it already built in with the gas and depreciation it built into the equation their actual we'll take a little bit more work but actually some people see it yielding a little bit more in deductions there you'll need to keep track of your mileage as well as every car repair expense you have gas oil maintenance tools so you have a huge breakdown and we'll have all the listing of the deductions in in the description below but you will need to be more diligent about keeping track of each of those deductions but at the end of the year actually you might yield a little bit more deductions by doing it this way thank you very much for watching the video I give our video a big thumbs up if you liked it subscribe to our Channel and ask the questions below bye.