How To Keep an IRS-Compliant Mileage Log For Taxes

Keeping a compliant mileage log can be the difference between ensuring you receive the maximum tax deduction for your mileage, or missing out on the money you’re entitled to.

In this article, we’ll take you through the practical steps of how to track mileage for taxes, different logging solutions, and what to pay attention to.

What is a mileage log book?

A mileage log book is a record you keep for tracking business driving. A log book can help you deduct expenses from your tax payments, whether you are self-employed, or own a small business.

If you sometimes use your car to meet a client, go to a conference, get supplies for your office, or similar, then you would likely be able to get a deduction for those trips at tax time.

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Keeping a mileage log in case of an IRS audit

If you don't have a mileage log book and the IRS audits you, the authority may reject your claims for vehicle expenses. According to the IRS, keeping a mileage log book is the most effective way to ensure that you have proof in the event of an audit.

What to record in your log book

Regardless of your employment situation, you will almost certainly have to keep track of the following:

• Total mileage for the year
• Odometer readings at the start and end of the year
• Mileage for each business trip
• Time of the trip (the day will suffice)
• Place (your destination)
• Purpose of the trip

The record must also be kept up to date. This implies that it must be completed at or near the time of departure. Anything that is updated once a week is generally considered sufficient.

Read more in-depth about mileage log requirements in the U.S.

Types of logs you can use to keep track of mileage

Pen and paper

You can buy a regular paper mileage log book either online or at most office supply shops for as little as $5. 

However, it’s becoming more common for people to log their trips digitally in order to avoid losing data and make sure they are compliant with IRS requirements. 

You can use an Excel, PDF, spreadsheet, or a mileage log book app like Driversnote to track automatically. 

Spreadsheet

A spreadsheet log is an excellent choice as it allows you to keep your data safely stored online and will save you time compared to the regular physical log book. 

However, there is still a lot of manual work involved, as you must log the data yourself and make sure you have tracked the correct mileage for each trip. You can check out our free mileage log template to help you get started and see if it’s the right fit for you.

Mileage tracking app 

An app is the most time-efficient solution for how to keep track of your mileage for taxes. You can automatically track your trips and have your data ready for you. 

After you have logged your trips, you only have to go into the app and distinguish between personal and business driving. Then, at the click of a button, the app will generate a report that you can send over directly to your employer or accountant.

Tips for keeping a mileage log for taxes

• Don't miss a trip! At the end of the day, verify whether you have properly logged or tracked your trips to ensure that all your logs are correct.
• Instead of using a physical log book, use an app to save time.
• Always log personal trips, as you need to be able to calculate the percentage of business trips out of all your driving for the deduction.
• Keep your logs for at least 3-4 years so that you can provide proof in case of an audit.
• Consult an accountant or a tax advisor if there’s something you’re unsure about.

Check out our updated IRS mileage guide for additional information on how to keep an IRS-compliant mileage log and all the regulations. 

Note: If you’re located in California, you should also check our dedicated article on California mileage reimbursement, as the rules differ.

Keep in mind that this is a general overview of how to keep a mileage log book. The information here should be supplemented with information from your accountant, employer, and the official IRS website.

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