Everlance tracks your business mileage and expenses. To help you get every tax credit and deduction you deserve this season, Everlance has partnered with Block Advisors, a team at H&R Block that is specially trained in self-employed and small business taxes.
If you've purchased an Everlance Premium Plus + Tax Prep bundle through Everlance, you'll want to prepare your Everlance data for filing with Block Advisors.
Follow below for these 4 easy steps to prepare your data!
Step 1: Classify all Everlance Trips and Transactions
Hopefully, you've stayed up to date with classifying your business-related mileage and expenses over the past year as "Work" (or another business-related purpose or category, e.g. "Consultant" or Wedding Photography," etc.).
If not, go ahead and address any uncategorized trips or expenses in Everlance for the previous tax year. We recommend doing this from the convenience of a desktop computer on the Everlance Web Dashboard.
Step 2: Export your Everlance data from the previous tax year
If you used Everlance to track both Trips and Transactions, make sure to set your Data Export filters "Export Type" to "All" So you receive separate Trips and Transactions exports via email. When completing these filters, you can select the file type you want to export (PDF, .CSV, etc).
Step 3: Find your mileage deductions for Work-related Trips in the previous tax year in the Data Export.
If you open your Trips Data Export, you'll see all the trips logged for the previous year. Keep your report as documentation, but the year-end total (included in the summary portion of the export) is all you actually need on your tax filing (Schedule C Form).
Block Advisors will walk you through each step of completing your Schedule C, but you can learn more here about this IRS form, which is used to report income and expenses for your self-employed or small business.
In your "Trips" Data Export summary portion, find the "Totals" for all Trips that were classified under "Work" Purposes.
Here are two images (PDF and XSLX/CSV formats) showing 1,746 business-related miles that equate to $1,004.96 in deduction falue (assuming the IRS $0.575/mile standard mileage rate for tax year 2020).
XLSX or CSV Format
This is the basis for your "Car and truck expenses" deduction, using the IRS standard mileage rate method.
If you purchased the "Online Tax Prep" bundle from Everlance, enter this information when prompted for mileage and expenses in Block Advisors' DIY Online tax prep software.
If you purchased the "Full-Service Tax Prep" bundle from Everlance, provide this information to the Block Advisors tax pro who is preparing your tax filing.
Step 4: Find your expense deductions for Work-related transactions in the Data Export.
Determining the value for other business expense deductions is a bit more involved because individual Work-related expenses you tracked using Everlance must be assigned to specific expense categories that are listed in Part II (Expenses) of Schedule C form.
Online Tax Prep Bundle
If you purchased the "Online Tax Prep" bundle from Everlance, Block Advisors' DIY Online Software will walk you through the various expenses categories and automate the completion of the Schedule C form for you.
You may find the Everlance Data Export in .XLSX or .CSV. format easiest to use for summing various individual expense line items into the required Schedule C category totals.
Full-Service Prep Bundle
If you purchased the "Full-Service Tax Prep" bundle from Everlance, your Block Advisors tax pro will assist you to group your expenses into the appropriate category tools for the Schedule C form.
To aid the process, be prepared with your Everlance Data Export downloaded in PDF or .XLSX/.CSV formats on hand, and your Block Advisor tax pro will instruct you on the best format to provide so they can complete your Schedule C Form.