Most apps only use Standard Rate. AlphaTax compares both methods and recommends whichever saves you more.
The IRS allows two methods for deducting vehicle expenses: Standard Mileage Rate ($0.70/mile in 2025) or Actual Expenses (gas, maintenance, insurance, depreciation). Most tax software only calculates Standard Rate because it's simpler. AlphaTax calculates BOTH methods and shows you which one results in a higher deduction—potentially saving you $500-2,000 more per year.
Track business trips with start/end locations, purpose, and miles driven.
Log gas, maintenance, insurance, and other vehicle costs throughout the year.
See Standard Rate deduction vs Actual Expenses deduction side-by-side.
AlphaTax recommends whichever method saves you more with clear documentation.
Don't leave money on the table—use whichever IRS-approved method saves you more.
See both calculations clearly with explanations of how each is calculated.
Generate mileage logs and expense records that meet IRS documentation requirements.
As you add data, see which method is winning and by how much.
See how different users benefit from this feature.
“High mileage with newer fuel-efficient car”
Standard Rate ($17,500) beats Actual Expenses ($14,200)—use Standard and save $825 in taxes.
“Lower mileage but expensive vehicle with high maintenance”
Actual Expenses ($9,400) beats Standard Rate ($5,600)—use Actual and save $950 in taxes.
“Moderate mileage with leased luxury vehicle”
Actual Expenses method includes lease payments, saving $1,200 more than Standard Rate.
| Alternative | Limitation | AlphaTax Advantage |
|---|---|---|
| Everlance/MileIQ | Only calculate Standard Mileage Rate | Compares both methods and recommends the higher deduction |
| TurboTax | Asks which method you want to use—assumes you know | Calculates both and tells you which is better for YOUR situation |
| Manual Tracking | Time-consuming and error-prone calculations | Automatic calculations with clear side-by-side comparison |
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