Mileage Tracking
Recording business-related travel distances for tax deduction or reimbursement purposes.
Mileage tracking is the practice of recording the distance traveled for business purposes in a personal vehicle. These records are used to claim tax deductions or request reimbursement from an employer at standard mileage rates set by tax authorities.
How Mileage Deductions Work
In the US, the IRS sets a standard mileage rate each year (67 cents per mile for 2024). You can deduct this amount for every business mile driven, or alternatively deduct actual vehicle expenses (gas, insurance, maintenance, depreciation) — whichever method gives a larger deduction.
The IRS requires a contemporaneous log of business miles, including: the date of each trip, the destination, the business purpose, and the miles driven. Commuting from home to a regular office doesn't count, but trips to client sites, secondary work locations, and business errands do qualify.
Why It Matters
Mileage is one of the most commonly overlooked tax deductions for self-employed individuals and small business owners. At 67 cents per mile, someone who drives 10,000 business miles per year would miss a $6,700 deduction — potentially saving $1,500-$2,000 in taxes.
Example
A real estate agent drives to 5 property showings per week, averaging 30 miles per trip. Over a year, that's roughly 7,800 business miles — a $5,226 deduction at the standard rate. By using a mileage tracking app, every trip is automatically logged and ready for tax time.
Related Terms
- Expense Tracking — Recording and monitoring expenditures
- Tax Deduction — Expenses that reduce taxable income
- Reimbursement — Repayment for out-of-pocket expenses
While ReceiptBot focuses on email receipts, tracking all your expenses — including mileage — is key to maximizing deductions. Try it free →