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For Lyft drivers, understanding and leveraging the IRS Mileage Rate can make all the difference in your tax savings. As we approach 2024, it’s essential to gear up with a mileage tracker that’s not just free or the best – but one that’s tailored for Lyft drivers.
In this article, we’ll give you an overview on
If you drive for Lyft, every mile you drive for work can help you pay less in taxes. The IRS Mileage Rate tells you how much money you can knock off your taxes for every mile you drive for Lyft. In 2024, this rate might go up, which means you could get more money back for your driving costs.
Think of the mileage rate like a tool that helps you figure out how much money you spend on driving stuff — like gas, fixing your car, and the car's value going down over time. For people who drive for their job, like you, this rate is super important. It makes doing your taxes easier and makes sure you get back the right amount for using your car for work.
Even though we don't know the exact rate for 2024 yet, we expect the rate will be higher, because we’ve seen the cost of using a car continue to climb throughout the year(We are an expense tracker, after all). It's really important to keep track of all the miles you drive for Lyft because it can help you save money. Using an app like Everlance can make sure you don't miss any miles you could write off on your taxes. When you track down every mile, you get more money in your pocket after paying taxes.
When you want to guess what might happen next, it helps to look at what happened before. That's true for the money you can save on your taxes for driving, too. Over the last few years, the IRS has sometimes changed the amount they say driving costs per mile. This helps them decide how much money drivers can say they spent on work trips when they do their taxes.
For example, in 2023, the IRS said it cost 65.5 cents per mile. That was more than before because it was getting more expensive to drive — like when gas prices go up.
In 2024, based on current conditions, the IRS has declared the mileage rate will be 67 cents. Up 1.5 cents from 2023.
This new rate isn't applicable until January 1, but remember, when you drive a lot of miles, those pennies add up to more money back in your pocket!
When you're picking out a tool to count your miles for Lyft, you want something easy, right? An app that will do it for you, so you don’t have to worry about keeping track by hand or in your notes app. Everlance is just that—an effortless mileage tracker that logs every mile without you having to write it down.
Think about what you need: a tracker that's simple to use, one that doesn't miss a single mile, and one that makes sure your tax papers are just what the IRS wants to see. Plus, you don't want it to cost a lot. Everlance has a free version for those that want to do the tracking themselves, or a paid version if you want to automate all of your tracking(We like to say...put them on cruise control....I know...I know..).
Things you should consider when looking for a mileage and expense tracker:
As a Lyft driver, you are your own boss, and you want to keep as much money as you can. That's why you need to keep track of your miles, because with the 2024 IRS Mileage Rate, those miles mean money you don't have to pay taxes on. Everlance makes this easy.
With Everlance, you just drive and it keeps count. With a quick swipe, you can classify a trip as work or personal and be on your way.
So don't let those miles and money slip away. Get Everlance and make sure every mile you drive for Lyft is counted and ready to save you money when tax time comes around.
Brad Thibeau is the Head of Growth & Partnerships at Everlance. Brad has worked at Everlance since 2021 with a focus on helping self employed people save time and money on their taxes.
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