Can I Claim Mileage for Driving to Work?

The Internal Revenue Service (IRS) provides specific guidelines for deducting vehicle expenses, allowing certain work-related travel costs to be claimed. Understanding these regulations is important for accurately reporting expenses.

General Rules for Commuting

The Internal Revenue Service generally considers the cost of transportation between an individual’s home and their main or regular place of work a non-deductible personal expense, defining this daily travel as “commuting.” Commuting is not eligible for tax deductions because it is viewed as a personal choice regarding where one lives in relation to where they work.

The “tax home” is defined by the IRS as the entire city or general area where an individual’s main place of business or employment is located. This definition is based on the primary area of work activity, not necessarily where a personal residence is maintained. If an individual lives a considerable distance from their workplace, that workplace still constitutes their tax home.

Even if a person has multiple jobs, travel from their home to their first job of the day, and from their last job of the day back to their home, is typically considered commuting. Therefore, for most taxpayers, the regular journey from their residence to their primary workplace remains a personal expense.

Situations Where Mileage is Deductible

While general commuting is not deductible, several specific scenarios allow individuals to claim mileage expenses. Travel to a temporary work location can be deductible if it is away from the individual’s regular place of business and is expected to last for less than one year. If the expectation changes and the assignment is anticipated to last longer than a year, the travel expenses become non-deductible from that point forward.

Mileage incurred when traveling between multiple work locations for the same employer is generally deductible. For example, if an individual drives from one office to another, or from an office to a client site during the workday, those miles are considered business miles. Similarly, travel from a regular work location to a temporary work location is also deductible.

For self-employed individuals, or employees with a bona fide home office that qualifies as their principal place of business, travel from the home office to another business location is deductible. The home office must be the main place where administrative or management activities are conducted. Trips from such a qualifying home office to client locations or other work sites are considered business travel.

Travel to a second job or business location after starting the workday at a primary job can be deductible. The distinction lies in whether the travel is between work sites rather than from home to the initial workplace. This differentiates deductible business miles from non-deductible commuting miles.

Methods for Calculating Deductions

Two primary methods exist for calculating deductible mileage: the standard mileage rate and the actual expense method. The standard mileage rate is a set rate per mile established annually by the IRS, which simplifies the calculation process. For 2025, the standard business mileage rate is 70 cents per mile.

This standard rate covers the costs associated with operating a vehicle, including depreciation, fuel, oil, repairs, insurance, and vehicle registration fees. Parking fees and tolls incurred for business purposes can be deducted in addition to the standard mileage rate. This method is often favored for its simplicity and reduced record-keeping requirements.

Alternatively, individuals can use the actual expense method, which involves deducting the actual costs of operating the vehicle for business use. This method requires meticulous tracking of all vehicle-related expenses, such as gas, oil, repairs, tires, insurance, depreciation, and lease payments. The deductible amount is determined by the percentage of the vehicle’s total use that is for business.

The choice between these two methods can depend on factors such as the amount of business driving, the vehicle’s operating costs, and personal record-keeping preferences. If a vehicle has high operating or depreciation costs, the actual expense method might yield a larger deduction. However, if the standard mileage rate is chosen for a leased vehicle, that method must be used for the entire lease period.

Required Records for Mileage Claims

Maintaining accurate and contemporaneous records is necessary to substantiate any mileage claims. Without proper documentation, deductions may be disallowed during an audit. The IRS requires specific information to be recorded for each business trip to validate the claim.

Essential details for a mileage log include the date of travel and the business purpose of the trip. It is also important to record the beginning and ending odometer readings for the vehicle for the entire year. For each individual trip, the total miles driven for business purposes and the destination or place of travel should be noted.

Common methods for record-keeping include physical mileage logs, digital spreadsheets, or mobile applications designed for mileage tracking. While odometer readings are required at the beginning and end of the year, tracking them for each trip provides maximum accuracy. These detailed records ensure compliance with IRS Publication 463.