Last Updated: June 28, 2025
For anyone driving for business, whether you’re self-employed, a gig worker, or part of a larger team, tracking mileage isn’t just an optional chose; it’s essential for your wallet. The IRS allows you to deduct business-related driving costs. This means accurate records can save you hundreds, even thousands, of dollars at tax time. Let’s dig into why tracking your miles is so important and how to do it right.
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The Power of Accurate Mileage Tracking
Think of mileage tracking as putting money back in your pocket. Every business mile you drive is a potential deduction. Without proper records, you leave money on the table.
Why Do You Need to Track Your Mileage?
Simply put, the IRS requires it. To claim a mileage deduction, you must have clear, accurate, and organized records. This isn’t just about the total miles; it’s about proving each trip was for business. This means noting the date, starting and ending locations, purpose of the trip, and mileage.
Who Needs to Track Mileage?
If you use your personal vehicle for business, you need to track it. This includes:
- Self-employed individuals: Consultants, freelance designers, real estate agents.
- Gig economy workers: Rideshare drivers, food delivery services, independent contractors.
- Small business owners: Anyone making client visits, deliveries, or picking up supplies.
- Employees: If your employer doesn’t reimburse your business mileage or reimburses you below the IRS rate, you often can’t deduct it on your tax return anymore. However, your employer may still need proof for their records or for your reimbursement.
Types of Mileage
Not all miles are equal when it comes to taxes. You’ll track:
Deductible miles
Make sure to clearly indicate if any of your trips is for the following reasons:
- Business Miles: Driving to meet clients, travel between job sites, picking up supplies, or attending business conventions. These are deductible if you are self-employed or a business owner.
- Charity Miles: Miles driven to volunteer for a qualified charitable organization, such as delivering meals or transporting goods. Anyone who itemizes deductions on their tax return can claim this.
- Medical Miles: Travel to and from medical appointments, pharmacies, or treatments for yourself or a dependent. This deduction is available to those who itemize and have qualifying medical expenses that exceed a certain percentage of their income.
- Moving Miles: Miles driven as part of a job-related move. This deduction is only available to active-duty members of the Armed Forces moving due to a military order.
Non-deductible Miles
Even though these miles ar not deductible, it is worth tracking them for a full picture and added accuracy.
- Commuting Miles: Your regular drive from home to your main place of work is generally not deductible.
- Personal Miles: Trips for personal errands, vacations, etc., are also not deductible.
For recordkeeping guidance, refer to IRS Topic no. 510, “Business use of car”.
Choosing Your Tracking Method: Apps vs. Manual Logs
You have two main ways to track your miles: manually or with a mileage tracker app. Both have pros and cons, but today’s technology offers clear advantages.
Manual Logging: The Old Way
Some people still prefer a pen and paper or a simple spreadsheet.
Pros
It’s free to start, and you have total control over the data.
Cons
It’s incredibly time-consuming and prone to human error. Forgetting to log a trip means missing out on deductions. Imagine manually logging every stop as a delivery driver!
Here’s a helpful video about making your own mileage spreadsheet.
Mileage Tracking Apps: The Smart Way
Modern mileage tracking apps use GPS to automatically detect and log your drives. They can make tracking mileage almost effortless.
Pros
- Automation: Many apps automatically start and stop tracking your trips, reducing manual input errors.
- Accuracy: GPS tracking is far more precise than odometer reading calculations or estimations.
- Time-Saving: Users report dramatic time savings by automation.
- IRS Compliance: Many apps format your data into IRS-compliant logs, ready for tax season.
Cons
- Cost: Some popular apps have subscription fees, though free versions or lifetime plans exist.
- Battery Drain: Constant GPS use can drain your phone’s battery faster.
Smarter Mileage Tracking, Made for Real Life
Whether you’re new to mileage logging or tired of apps that miss trips or sell your data, there’s a better way. MileageWise brings must-have features and special deals to the table, with reliability and privacy in mind.
MileageWise’s Mileage Tracker App
- Hands-Free Mileage Logging: Automatically records your drives with different detection methods, so you never miss a mile.
- Easy Setup: Get started in minutes, no tech skills needed. Just install, drive, and let the app handle the rest.
- Ad-Free and Private: No annoying ads or hidden tracking. Your trip data stays yours, not sold to third parties.
- Reliable Trip Start Capture: Exactly pinpoints where your drive begins, even when other apps struggle to do so.
- Flexible Distance Options: Choose between exact route tracking or shortest-distance calculation, depending on your preferences.
- Built-In Waze Integration: Use Waze for directions while your mileage log updates quietly in the background.
- Expense Tracking Combo: Keep your mileage and work-related expenses in one place—making tax time simpler and faster.
Lifetime Plans That Actually Save You Money
Most mileage tracking apps lock you into monthly fees, but not ours. MileageWise offers one-time payment options, so you can track unlimited miles without worrying about subscriptions.
- Small Lifetime Deal: A simple, affordable choice for solo users who want unlimited mileage tracking, AI-powered reports, and peace of mind, for just $119, one time.
- Gold Lifetime Plan: Designed for users who need more, like logging past trips or importing Google Location History. Ideal if you’re catching up on previous years or preparing for an audit.
Support That Gets What You’re Dealing With
Busy professionals don’t have time to wait days for answers. That’s why our support team is responsive, practical, and understands the daily demands of your work. Whether you’re setting up your account or refining your reports, we’re here to help, fast.
Try MileageWise for free for 14 days. No credit card required!
Automatic Mileage Tracker App
AI Logs & Google Timeline Import
A Customer’s Journey to Better Mileage Tracking
“I run a small handyman business and I’m constantly on the road. Client visits, supply runs, job site hops, you name it. For years, I relied on a crumpled notebook to jot down odometer readings, when I remembered to. Most of the time, I didn’t. At tax time, I’d guess my total mileage and hope for the best. I knew I was losing money, but the idea of tracking every single trip felt overwhelming.
That changed when I found a mileage tracking app built for people like me. It took minutes to set up, and now it logs my drives automatically in the background. It even captures my trip purposes automatically, which is extremely convenient. So now, I don’t have to think about tracking anymore. My records are accurate, audit-ready, and I’m finally claiming the deductions I used to miss.”
Conclusion: Take Control of Your Mileage Deductions
Tracking mileage is a critical step for anyone who drives for business. It puts money back in your pocket and gives you peace of mind during tax season. Stop guessing and start accurately logging. Tools like MileageWise offer advanced features, to ensure you never miss a deduction again.
Here are your next steps:
- Understand the IRS rules: Know what qualifies as a deductible mile.
- Choose your method: Decide if an app or manual tracking is best for you. We strongly recommend an app for ease and accuracy.
- Start tracking now: The sooner you begin, the more deductions you can claim.
- Review regularly: Check your mileage logs consistently to ensure accuracy.
- Keep records: Store your mileage logs for at least three years, in case of an audit.
FAQ
Why is tracking mileage important?
Tracking mileage is crucial for anyone who uses a personal or business vehicle for work-related activities. Accurate records help maximize tax deductions, ensure IRS compliance, and reimburse employees fairly. Missing or incomplete tracking can lead to lost money or IRS penalties.
What records do I need to keep to claim mileage on my taxes?
You should keep a mileage log with:
- Date of each trip
- Start and end locations
- Purpose of the trip
- Total miles driven per trip
- Starting and ending odometer readings for the year
Digital logs from apps or spreadsheets are acceptable if they contain all required information.
How do I track my mileage?
You can track mileage either manually (using a notebook or spreadsheet) or with an app. Manual tracking requires consistent input and can be error-prone, while apps provide automatic logging and reduce administrative burden.
What types of trips qualify for buseinss mileage deduction?
Only business-related travel qualifies. This includes trips between workplaces, client meetings, or job sites. Commuting from home to a regular workplace does not qualify. However, driving from your home office to a client or a secondary work location usually does.
How long should I keep my mileage records?
The IRS recommends keeping your mileage and tax records for at least three years after filing your tax return, in case of an audit.
