How to Keep a Mileage Log for Taxes: A Simple Guide for Drivers and Small Business Owners

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If you drive for work, every business mile can matter at tax time. But a deduction is only as good as your records. Many people lose money simply because they did not write their trips down. Here is a simple way to keep a mileage log that is clear, complete and easy to keep up.

Who needs a mileage log?

A mileage log is useful for anyone who uses a personal car for work: self-employed people, freelancers, delivery and rideshare drivers, real estate agents, sales reps, contractors and small business owners. Some employers also ask staff to log miles before they pay mileage reimbursement.

What to write down for every trip

• Date of the trip
• Where you went (destination or address)
• Why you went (for example: client meeting, delivery, supply pickup)
• Odometer reading at the start and at the end
• Miles driven (end minus start)
• Business or personal, so you can separate them at the end of the year

5 habits that keep your log accurate

1. Write it the same day. Records made at the time of the trip are much more reliable than notes rebuilt months later.
2. Keep the log in the car. A small notebook in the glove box means you never forget it.
3. Record the odometer on January 1 and December 31. This gives you your total yearly miles.
4. Add up each page. Page totals make the yearly summary fast.
5. Log fuel, tolls and parking too. Keep these costs on a separate page so they are easy to find.

Paper log or app?

Apps can track trips with GPS, but they drain the battery, need a subscription and can miss trips when the phone is off. A paper log is cheap, works without signal and is easy to hand to your accountant. Many drivers use paper as their main record or as a backup.

Tax tip

Mileage rates and rules change every year, so check the current IRS standard mileage rate or ask a tax professional what records you need. This article is general information, not tax advice.

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