# EveryLastMile Glossary

> Every mileage and tax term EveryLastMile underlines — defined with the IRS source cited, the math worked out, and the jargon kept short.

Canonical: https://everylastmile.app/glossary · 15 entries

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## Mileage & vehicle expenses

### [§274(d) Substantiation](https://everylastmile.app/glossary/section-274d-substantiation)

The strict four-element record-keeping rule that governs vehicle deductions. The Cohan rule does not apply. Lose the log, lose the deduction.

### [Accountable Plan](https://everylastmile.app/glossary/accountable-plan)

Treas. Reg. §1.62-2 — the only way a W-2 employer can pay mileage tax-free in 2026. Three rules, two deadlines, one big difference.

### [Actual Expense Method](https://everylastmile.app/glossary/actual-expense-method)

The 'track every receipt' alternative to the IRS standard mileage rate. Sometimes a bigger deduction — and sometimes a one-way door.

### [Automatic Drive Tracking (ADT)](https://everylastmile.app/glossary/automatic-drive-tracking)

Apple's term for sensor-fusion-based drive detection. The technology that lets an iPhone log a business mile without you opening an app.

### [Business-Use Percentage](https://everylastmile.app/glossary/business-use-percentage)

Business miles divided by total miles. The pivot point for the actual expense method — and for the 50% MACRS-depreciation cliff.

### [IRS Standard Mileage Rate](https://everylastmile.app/glossary/irs-standard-mileage-rate)

The IRS's per-mile shortcut for deducting vehicle costs. 2026 business: 72.5¢ Jan–Jun, 76¢ Jul–Dec — already includes gas, insurance, depreciation.

### [Mileage Log](https://everylastmile.app/glossary/mileage-log)

The contemporaneous record §274(d) requires. Four elements per trip, kept at or near the time of the drive. Phone notebooks fail; auto-logged GPS records win.

## Self-employment & taxes

### [1099-NEC](https://everylastmile.app/glossary/1099-nec)

The form a business sends an independent contractor. The threshold jumps from $600 to $2,000 for 2026 payments — but the income is taxable either way.

### [No Tax on Tips Deduction (§224)](https://everylastmile.app/glossary/no-tax-on-tips-deduction)

New IRC §224, born from OBBBA §70201. Up to $25,000 of qualified tips deductible above the line — but only for income tax, not SE tax.

### [QBI Deduction (§199A)](https://everylastmile.app/glossary/qbi-deduction)

The 20% deduction on qualified business income for pass-through owners. Made permanent by OBBBA, with a new $400 minimum starting in 2026.

### [Quarterly Estimated Taxes](https://everylastmile.app/glossary/quarterly-estimated-taxes)

The IRS gets paid as you earn — four times a year. Form 1040-ES, IRC §6654, and a $1,000 trigger.

### [Schedule C](https://everylastmile.app/glossary/schedule-c)

The IRS form where self-employed people report business profit or loss. Line 9 is the mileage line — and it's the line that pays for ELM.

### [Self-Employment Tax](https://everylastmile.app/glossary/self-employment-tax)

The 15.3% Social Security + Medicare tax self-employed people pay in lieu of FICA withholding. Half is deductible above the line.

## Worker classification & recent law

### [Independent Contractor](https://everylastmile.app/glossary/independent-contractor)

Not an employee. The IRS, the DOL, and California all have different tests — and '1099 employee' is not a real legal category.

### [OBBBA (One Big Beautiful Bill Act)](https://everylastmile.app/glossary/obbba)

Pub. L. 119-21, signed July 4, 2025. The most consequential tax law for self-employed people since the TCJA — here are the seven sections that matter.