Whether you are in business for yourself or you are reimbursed by your employer, keeping track of your expenses can be a pain, so we’ve designed Everlance to make tracking your mileage and expenses a breeze.
With Everlance you can:
1. Make more money by paying less in taxes
2. Save time
3. Backup your data to the cloud
If You Are Self-Employed
If you’re self-employed, then the government treats you like a one-person corporation who needs to pay taxes on the profit of your business. The government already knows how much you made, so the revenue you report during tax season isn’t going to change — this is already found on your 1099 or other tax document. However, the burden of what you claim for business expenses is on you, and this is where Everlance can help!
Everlance lets you automatically track all your miles and other business-related expenses. The more expenses you can explain and record, the less you have to pay in taxes. As a freelancer, it’s important to remember that your chances of audit is significantly higher than the average employee. Not to worry! Everlance stores a digital receipt of all your transactions on our secure server, so you can rest easy knowing that in the event of an IRS audit you’ll be able to provide a record of your expenses.
Step 1: For best accuracy check, that all locating methods are enabled:
Everlance’s auto-detection feature tracks your mileage so each recorded trip is a potential tax deduction. It’s important to optimize the tracker accuracy!
Go to Settings > Privacy > Location and enable GPS, WI-FI, and mobile networks. Enabling your Wi-Fi will significantly improve location accuracy.
If you don’t need the auto-detection tracker (and prefer to enter your trip details manually), you can turn Automatic Trip Detection OFF in the Home page of the app underneath Trip Controls.
Step 2: Classify your miles!
For most freelancers and employees, their expenses are vehicle-related. The IRS requires people to report their expenses using one of two methods: Actual Expenses or Standard Mileage Rate.
For the vast majority of freelancers, the Standard Mileage Rate is not only more convenient but worth a substantial amount more. In 2017, the IRS Standard Mileage Rate was $0.535 per mile so if you drove 10,000 miles for your business that’s $5,350 worth of expenses you do not have to pay taxes on!
In order for Everlance to help track this for you, you need to tell us which miles are business-related and which are personal. Do this by going to the Trips tab and swiping LEFT on trips for Personal/Medical/Charity/Other or RIGHT for Work.
You can also disable the automatic tracking feature from the home screen by sliding Automatic Tracking to ON or OFF. We recommend using the auto-detect tracker since it will automatically create a digital receipt of your trip which is helpful for documentation purposes (e.g. proving to the IRS).
PLEASE NOTE: automatic tracking is still not 100% accurate! There are a lot of external factors Everlance cannot control (such as driving through an area with poor reception, etc.), but we’ve designed the app to be highly accurate and we are always improving.
If you make frequent stops when driving (such as for Uber or Lyft), we recommend manually starting your trip with “Start Tracker” from the home screen.
Step 3: Add your revenue and non-mileage expenses
Of course, there are other expenses outside of mileage and car maintenance, and Everlance can help record these! The basic rule the IRS will use to assess whether an expense is legitimate is whether it is deemed “Ordinary” and “Necessary” for your line of business. You can read more on their guidelines from the IRS here; we also recommend taking a look at our Tax Guide.
In order to add your revenue or expenses simply tap the “+” on the Home Screen and select the transaction type you need.
Step 4: Export your data
Everlance securely stores your data in the cloud on our servers. To request a copy of this data, simply click on “Generate Report” from the app menu and we’ll send you an email with your itemized trips and expenses. Learn more here - Click Here
As always if you have any questions you can contact our support team at email@example.com
Thank you for reading this and safe driving!