As the end of the year approaches, ensuring that you're on top of your finances, especially regarding tax preparation, is essential. A unique yet practical tip to consider is to schedule an oil change for your vehicle. This might seem unrelated to taxes at first glance, but let me explain why it's a smart move.

Why schedule an oil change?

Getting your oil changed at the end of the year serves a dual purpose. First, it sets a baseline for your vehicle's mileage, crucial for claiming the standard mileage deduction. Having a documented starting and ending point for your mileage creates a clear record of how far you've driven throughout the year.

This record can be beneficial if you opt for actual expenses instead of the standard deduction.

The importance of documentation

When it comes to tax season, proper documentation is critical. If you're ever audited, having receipts from a disinterested third party, like an oil change service, can make all the difference. For instance, someone who is audited after claiming a staggering 80,000 miles for business purposes could be suspicious to an auditor. However, presenting a stack of oil change receipts confirming driving habits can make the auditor back off.

It's not just about oil changes

While oil changes are a great starting point, any service that tracks your mileage—such as tire rotations or significant repairs—can also be documentation. These records prove that your mileage claims are legitimate, taking the burden off you to remember every detail.

For example, if you purchase a new vehicle during the year, keep track of its mileage upon purchase and at the end of the year. When you sell the car, the title will show how many miles were on it, creating another layer of documentation for your tax records.

Planning ahead

As you prepare for the end of the year, consider scheduling your oil change. This will ensure you have an accurate mileage record to tie back to the beginning of the year. Not only will you be doing your vehicle a favor, but you'll also be setting yourself up for a smoother tax season.