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What does Mileage Have to Do with Taxes?

What does Mileage Have to Do with Taxes?

August 11, 20252 min read

🚗 Car Mileage Log: What Does Mileage Have to Do with Taxes?

If you’re a business owner, self-employed, or someone who racks up miles in the name of work, listen up — because those miles can put money back in your pocket. 💰 And in 2025, that pocket is a little happier: the IRS standard mileage rate is 70¢ per mile.

So, what does mileage have to do with taxes? A lot — if you know the rules, track your trips, and avoid the “I’ll remember it later” trap (spoiler: you won’t 😉).

📍 What Is a Mileage Deduction?

It’s the IRS’s way of letting you write off the cost of using your vehicle for business. You’ve got two options:

  • 🚦 Standard Mileage Rate – Multiply your business miles by the IRS rate (70¢ in 2025).

  • 🛠️ Actual Expenses Method – Track every vehicle expense (gas ⛽, repairs 🔧, insurance 🛡️, etc.) and deduct the business-use portion.

Example: Drive 1,000 business miles in 2025? That’s $700 off your taxable income with the standard rate.

🙋 Who Can Claim It?

  • Self-employed? ✅ Absolutely.

  • Employee? 🧐 Maybe, but only if you’re not reimbursed and meet IRS rules.

  • Volunteer? ❤️ You might qualify at the charitable mileage rate.

🛣️ What Miles Count?

✅ Meeting clients
✅ Job sites & work locations
✅ Business errands like the bank 🏦 or post office 📮

❌ Commuting from home 🏠 to your regular workplace
❌ Personal errands (“I was
sort of thinking about work while grabbing coffee ☕” doesn’t count)

🗒️ Record-Keeping: Your Secret Weapon

The IRS loves proof 📑. Keep a log that includes:

  • 📅 Date

  • 📍 Start/End locations

  • 📝 Purpose of trip

  • 🚘 Miles driven

Apps 📱 work great, but even a glovebox notebook 📓 does the job — just keep it updated.

💡 Pro Tips to Maximize Deductions

  • Combine errands into one trip. 🛍️

  • Use a dedicated work vehicle 🚐 if possible.

  • Track every mile in real time — don’t guess.

✅ The Bottom Line

Mileage deductions are one of those “simple but powerful” tax tools. Stay organized, follow the rules, and you can turn your daily drives into real tax savings 💵.

Your miles matter — so track them like they’re worth money… because they are. 💎

💬 Need help making sure you’re tracking and deducting your miles the right way? Book a call with Lisa Brugman EA and Associates today — and let’s make those miles work for you. 📞

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Lisa Marie Brugman, EA

Lisa Marie Brugman, EA, Owner/ Principal Lisa Brugman, EA & Associates

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