Track reimbursed mileage income that exceeds the IRS rate

When you drive for business, your company may reimburse you for mileage at a fixed rate per mile. The IRS sets a standard mileage rate each year to define what’s considered a tax-free reimbursement. If your company reimburses you at a higher rate than the IRS allows, the extra amount is considered income—and it may be taxable.

You can use the Mileage Tracker in Quicken to track the difference between your reimbursement rate and the IRS rate. This helps you properly account for the additional income and keep your records accurate for tax time.

Open the Mileage Tracker

Choose one of the following based on the type of tab you're using.

From the Business tab

Use these steps if you're accessing the Mileage Tracker from the Business tab.

1. Click the Business tab.

2. Click the Business Tools button.

3. Choose Mileage Tracker.

From the Rental Property tab

Use these steps if you're accessing the Mileage Tracker from the Rental Property tab.

1. Click the Rental Property tab.

2. Click Add Transactions.

3. Choose Mileage Tracker.

Enter the reimbursed mileage income

To track the income portion of your mileage reimbursement, enter the per-mile difference between your company's reimbursement rate and the IRS rate as a negative number.

1. Record your trip as usual.

2. Under Trip Type, select Other.

3. In the Rate field, enter the per-mile difference using a minus sign (for example, -0.045).

Quicken will use this rate to calculate the amount of income generated by the reimbursement amount above the IRS standard.

Example: reimbursement above the IRS rate

This example shows how to calculate and enter the income from mileage reimbursement that exceeds the IRS rate.

If you drove 100 miles and your company reimbursed you at $0.60 per mile while the IRS rate was $0.555 per mile:

• The rate difference is $0.045 per mile.

• Enter -0.045 in the Rate field.

• Quicken will calculate a $4.50 difference for the trip, which may be taxable income.

Quicken records this as income in the amount of the difference. Be sure to consult your tax advisor about how to report it.