Do You Count Round Trip Mileage for Taxes?

Navigating tax deductions for vehicle use can be challenging. Understanding which mileage counts for tax purposes is important, as certain types of mileage incurred for specific activities may reduce your taxable income. The Internal Revenue Service (IRS) provides detailed guidance on what qualifies, emphasizing the need for accurate record-keeping. This guide clarifies deductible and non-deductible mileage, and how to properly document and report eligible driving.

Understanding Deductible Travel

Certain travel expenses, including mileage, can be deducted if directly related to specific activities. The IRS defines these categories to distinguish them from personal travel. Generally, mileage driven for business, medical, or charitable purposes may be deductible.

Business travel mileage covers trips made for work purposes beyond regular commuting. This includes driving to meet clients, attend business meetings, or travel between different job sites. If a home office qualifies as a primary place of business, travel from that home office to other business locations is also deductible.

Mileage incurred for medical reasons can also be deducted under specific conditions. This includes transportation to and from medical appointments, a pharmacy to pick up prescribed medication, or to provide medical care for a dependent. The costs must be primarily for and essential to medical care.

Driving for charitable organizations allows for a deduction. This applies to mileage driven while performing services for a qualified charitable organization, such as transporting supplies or volunteering at an event. Additionally, for qualified active-duty members of the Armed Forces, mileage related to job-related moves may be deductible.

Mileage That Is Not Deductible

Understanding what driving expenses cannot be claimed is as important as knowing what can be deducted. Regular commuting between home and a primary workplace is generally not deductible, regardless of distance, as it is considered a personal expense.

Mileage for personal errands, social outings, or other non-business-related travel also does not qualify for a tax deduction. The purpose of the trip must directly relate to a deductible activity.

The Tax Cuts and Jobs Act (TCJA) of 2017 significantly impacted unreimbursed employee business expenses, including mileage. For tax years 2018 through 2025, most employees cannot deduct unreimbursed business expenses, even if they itemize deductions. This means mileage an employee incurs for work, if not reimbursed by their employer, is typically no longer deductible at the federal level.

Limited exceptions exist for Armed Forces reservists, qualified performing artists, or fee-basis state or local government officials. These specific categories of employees may still deduct unreimbursed business mileage. However, for the vast majority of W-2 employees, these expenses are not deductible during this period.

Recording and Valuing Your Mileage

Accurate record-keeping is fundamental for claiming mileage deductions. The IRS requires meticulous records to substantiate claims in an audit. Without proper documentation, a deduction may be denied.

For each trip, records should include the date, destination, and the specific business, medical, or charitable purpose of the travel. Record starting and ending odometer readings for each trip, and total miles driven. Many taxpayers find it helpful to record their vehicle’s odometer reading at the beginning and end of each tax year.

Taxpayers have two primary methods for valuing deductible mileage: the standard mileage rate or actual expenses. The standard mileage rate is a simplified method where a taxpayer multiplies qualifying miles by a rate set annually by the IRS. For 2025, the standard mileage rates are 70 cents per mile for business, 21 cents per mile for medical purposes, and 14 cents per mile for charitable organizations. This rate covers the overall costs of operating a vehicle, including gas, oil, maintenance, and depreciation.

Alternatively, taxpayers can deduct actual expenses incurred for the qualifying use of their vehicle. This method involves tracking all vehicle-related costs such as gas, oil, repairs, insurance, and depreciation. While this method can potentially result in a larger deduction, it requires significantly more detailed record-keeping. Generally, a taxpayer must choose one method for a vehicle in the first year it is used for business and then stick with that choice or switch under specific rules in subsequent years.

Reporting Mileage Deductions

Once mileage has been accurately tracked and valued, the next step involves reporting these deductions on the appropriate tax forms. The specific form used depends on the type of mileage and the taxpayer’s employment status.

Self-employed individuals, such as independent contractors or small business owners, report deductible business mileage on Schedule C (Form 1040), Profit or Loss From Business. Vehicle expenses are entered as part of business deductions on this form.

Mileage for medical and charitable purposes is reported differently, claimed on Schedule A (Form 1040), Itemized Deductions. For medical mileage, only the amount exceeding 7.5% of your adjusted gross income can be deducted. Charitable mileage does not have an adjusted gross income threshold. These deductions provide a tax benefit only if the taxpayer itemizes and their total itemized deductions exceed the standard deduction.

Taxpayers should retain all mileage logs and supporting documents for a minimum of three years from the date the tax return was filed. The IRS may have up to six years to audit a return. Maintaining thorough records for this period is a safeguard against potential IRS inquiries.