Lyft Mileage Log: How to Track Drives to Save on Taxes

Lyft mileage log: Why you need to track every drive

If you drive for Lyft regularly, you can easily deduct hundreds if not thousands of dollars in business mileage (check the current rates).

This lowers how much of your income is taxable, which means you get to keep more of what you earn. But you need to prove that you drove those miles with a detailed, accurate mileage log. You won't need to submit it when you file, but the IRS will ask for it during an audit, and you won't be able to recreate it.

So it's best to track drives as they happen and include these details: total mileage, date, destination address, and business purpose (driving to a Lyft inspection, picking up passengers, etc).

What information to track

You'll need to track:

• Dates
• Addresses
• Mileage for each drive
• Purpose of the drive ("passenger pick-up for Lyft")
• Location name, where appropriate (airport names or business names)

What's the best way to track mileage for Lyft?

An app that tracks drives automatically will save you the admin work of having to compile records from different gig work apps or other mileage records you may have.

Though some people choose to use a note on their phone, a spreadsheet, or even a paper log, these methods require your constant attention. Otherwise you'll forget to update them and miss out on deduction savings.

Can I use the Lyft driver app to prove miles?

Yes, but the information in the Lyft app may not be complete, and since you're not an employee, it's best practice to keep your own records. For example, in case you're ever audited by the IRS and have trouble accessing the Lyft app or can't find your data.

Aside from access, many Lyft drivers take on other gig work and find it simpler to keep all their business mileage in one place instead of searching through a bunch of different year-end summaries when it's time to file taxes.

Having all your mileage in one place also allows for better formatting consistency, which makes them easier to read (for you, your accountant, and the government) and more likely to be accepted by the IRS during an audit.

If you use a mileage tracker like MileIQ, all your drivers will be tracked no matter which rideshare or gig app you're using. Then you would just tap to create a report of ALL your business drives at once, plus details like dates, addresses, and total mileage.

How do taxes work for Lyft?

You'll need to pay your own taxes, because you're considered an independent contractor by Lyft.

If you expect to owe more than $1,000 in taxes, you'll need to calculate and pay estimated taxes every quarter. Once you've worked as a driver for a year, you can use last year's income to estimate your payments for the next tax year.

Where and how do I pay my taxes as a self-employed?

Thankfully you don't have to go buy stamps or hunt in the junk drawer for an envelope (though mailing a check is still an option!). Simply create an account on the IRS website and follow the prompts to make a payment with your bank account or card. If you prefer, you can also pay by phone.

State governments usually also have an online payment option, if you're required to pay state income tax.