How to Log Mileage for Taxes and Keep Accurate Records

Tracking mileage for tax purposes can lead to significant deductions, but only if records are kept accurately. The IRS requires detailed logs to substantiate claims, making proper documentation essential for avoiding penalties or lost deductions.

To ensure compliance and maximize savings, it’s important to understand what qualifies as deductible mileage and how to maintain organized records.

Documentation Requirements

The IRS requires taxpayers to maintain detailed records supporting mileage deductions. Logs must include the date of each trip, starting and ending locations, total miles driven, and the specific purpose of travel. Vague descriptions like “client meeting” or “work trip” are insufficient; entries should specify details such as “Meeting with ABC Corp. at 123 Main St. regarding Q2 contract.”

Digital tools like MileIQ and Everlance simplify tracking by automatically recording trips and categorizing drives. For those who prefer manual tracking, a logbook or spreadsheet can be used, but consistency is essential. The IRS does not accept estimates, so every trip must be recorded as it happens.

Receipts for tolls and parking fees should be kept, as they may be deductible in addition to mileage. While fuel receipts are unnecessary for the standard mileage deduction, they are required if using the actual expense method. Supporting documents like appointment confirmations or client emails can further validate mileage claims if questioned.

Trip Categories

Mileage deductions depend on the purpose of the trip, with tax rules distinguishing between business, personal, charitable, and medical travel. Each category has specific requirements and limitations, making accurate classification necessary.

Business

Business mileage includes travel necessary for work that is not reimbursed by an employer. This covers trips to meet clients, visit job sites, attend conferences, or travel between different work locations. Commuting from home to a regular workplace does not qualify, as it is considered a personal expense.

For 2024, the IRS standard mileage rate for business travel is 67 cents per mile. A taxpayer driving 10,000 miles for business can deduct $6,700. Alternatively, the actual expense method allows deductions for fuel, maintenance, and depreciation but requires detailed records of all vehicle expenses.

Self-employed individuals report business mileage on Schedule C (Form 1040). Employees who receive reimbursement from their employer cannot deduct mileage due to the Tax Cuts and Jobs Act of 2017, which suspended unreimbursed employee expense deductions through 2025.

Personal

Personal mileage includes commuting, errands, and other non-deductible travel. The IRS does not allow deductions for driving between home and a regular workplace, regardless of distance. However, if a taxpayer has a home office that qualifies under IRS rules, trips from home to business-related locations may be deductible.

Mixed-use trips, where both business and personal travel occur, require careful tracking. If a taxpayer drives 30 miles to meet a client but also stops for personal shopping, only the business portion is deductible. The IRS expects clear separation of these expenses.

Leased vehicles used for both personal and business purposes must follow the IRS’s lease inclusion rules, which require adjustments based on the percentage of business use.

Charitable

Mileage driven for volunteer work at a qualified 501(c)(3) organization is deductible at a rate of 14 cents per mile in 2024. This includes travel to and from a charity’s location, transporting goods for donation, or driving as part of volunteer services. Unlike business mileage, the rate for charitable travel is set by Congress and does not adjust annually for inflation.

For example, if a taxpayer drives 500 miles in a year for volunteer activities, the deduction would be $70. While fuel and maintenance costs cannot be deducted separately, parking fees and tolls related to charitable travel are eligible.

To claim this deduction, taxpayers must itemize deductions on Schedule A (Form 1040) and maintain records showing the date, purpose, and miles driven. A letter from the charity confirming volunteer work can serve as additional documentation if verification is required.

Medical

Mileage for medical purposes is deductible if the travel is primarily for necessary medical care, including trips to doctors, hospitals, pharmacies, and therapy sessions. The IRS allows a deduction of 21 cents per mile in 2024, plus parking fees and tolls.

For instance, if a taxpayer drives 1,000 miles for medical appointments, the deduction would be $210. However, only expenses exceeding 7.5% of adjusted gross income (AGI) are deductible. If a taxpayer’s AGI is $50,000, only medical expenses above $3,750 qualify.

Medical mileage must be itemized on Schedule A (Form 1040). If a taxpayer is reimbursed by insurance or a health savings account (HSA), those amounts cannot be deducted.

Storing and Organizing Records

Keeping mileage records organized ensures they remain accessible in case of an IRS audit or state tax review. A structured system reduces the risk of lost documentation and simplifies tax filing.

Digital solutions automate data collection and categorization. Cloud-based services like Google Drive or Dropbox allow taxpayers to store mileage logs, receipts, and supporting documents securely. Creating folders for each tax year and subfolders for different expense categories makes retrieval easier. Exporting mileage reports from tracking apps and saving them in PDF format ensures records remain readable even if software changes.

For those who prefer physical records, a dedicated binder or file system works well. Using labeled dividers for each month or quarter keeps logs in chronological order, making it easy to cross-check mileage against appointment confirmations or business invoices. Keeping a backup copy—either as scanned documents or photocopies—prevents loss due to damage or misplacement.

Consequences for Inadequate Documentation

Failing to maintain proper mileage records can lead to disallowed deductions, increased tax liability, and potential penalties. The IRS requires substantiated claims, meaning estimates or incomplete logs will not be accepted. If a deduction is unsupported, the IRS may disallow it, increasing taxable income and potentially resulting in additional tax owed.

Beyond losing deductions, inadequate records can trigger accuracy-related penalties, which impose a 20% penalty on underpayments due to negligence or substantial understatement of income tax. For example, if a taxpayer claims $10,000 in business mileage deductions but fails to provide proper records, the IRS may disallow the deduction, increasing taxable income by $10,000. If this results in an additional $2,400 in tax owed, the accuracy-related penalty could add another $480, making the total financial impact $2,880.

In severe cases, if the IRS suspects intentional misrepresentation, fraud penalties may apply, carrying a penalty of 75% of the underpayment. While most audits result in adjustments rather than fraud investigations, repeated failures to substantiate business mileage could raise red flags.