Understanding business mileage is key for anyone who drives for work. It’s not just about the distance you drive; it’s about why you’re driving and how to prove it. Get it right, and you could save a significant amount on your taxes. Get it wrong, and you risk problems with the IRS. This guide breaks down everything you need to know in simple terms.
What Qualifies as Business Mileage for IRS Purposes?
This is the most important question to answer. Business mileage is the distance you drive for work reasons, but it doesn’t include your regular drive from home to work. That trip is called commuting mileage, and it’s usually a different category.
Think of it this way:
- You drive from your home to your main office every day. That’s commuting mileage. It typically doesn’t count for tax deductions.
- You drive from your main office to a client’s location. That’s business mileage.
- You drive from your main office to pick up office supplies. That’s business mileage.
- You drive from one work location to another, maybe between two different job sites. That’s also business mileage.
The IRS defines business mileage as travel between your home and a temporary work location, between a regular work location and a temporary work location, or between two work locations. If you run errands for your business, like going to the bank or the post office, those miles also count as long as they are for business reasons and not part of your normal commute
