What Is a Mileage Logbook?

Why do I need a logbook?

If you own a business or are an independent contractor, you can deduct work mileage on your taxes. If you drive for an employer, your work mileage is probably reimbursable (in some states, reimbursing employees for mileage is required by law). In either case, a mileage logbook is your proof of miles on the road and the IRS or your employer may ask for it.

What information should I track in a logbook?

Every work-related drive in your mileage logbook should include:

• Date of the trip
• Start location (address and/or name location, such as “Main office”)
• End location (address and/or name location, such as a client site)
• Purpose of the drive and details (client meeting, vendor visit, supply run)
• Starting odometer reading
• Ending odometer reading
• Total mileage traveled (based on odometer readings

You should also note down parking and toll fees in your mileage log, because they’re also reimbursable and can be deducted as a business expense if you’re self-employed. 

As you can likely tell, writing down all of this information is quite burdensome. The bad news is that none of these details are optional — to claim deductions or reimbursements for mileage you’ll need to provide proof. 

The good news is that mileage trackers can capture most of that information with relatively little effort from you. From simple GPS trackers that just count your miles, to more sophisticated tools that calculate your deduction amounts (ahem, MileIQ!), you have a lot of options to make your life easier.

Is there anything I should not include in a mileage logbook?

Personal drives, even when you’re driving from a work location shouldn’t go into your mileage log. For example, driving from work to a doctor’s appointment and then coming back would not count as work-related travel. 

Another notable exception is your commute — driving from home to your regular place of work, or from regular workplace to home. Commutes are considered a personal expense by the IRS, and cannot be counted toward work mileage, whether you deduct it from your taxes or get reimbursed for drives. Employers can still reimburse employees for commute expenses but these reimbursements must be treated as taxable income.

Mileage logbooks for businesses and self-employed people

The IRS allows businesses and independent contractors to deduct business-related expenses, including work mileage, from their taxable income. This lowers the amount of taxable income you have, and thus can bump you down into a lower tax bracket. 

In other words — deducting mileage saves you money in the long run. But only if you can prove that all the mileage deducted was for business purposes, which is why a mileage logbook is your friend. Whether you drive yourself or have employees who drive for you, keeping mileage records in case of an IRS audit can help you avoid penalties.

Mileage logbooks for employees

If you’re reading this article, chances are your company reimburses work mileage — it’s a common practice and currently three states (California, Illinois, and Massachusetts) require it. That means a detailed mileage logbook can help you get paid for time spent on the road. .

While you can’t deduct work mileage on your personal tax return as an employee, you can keep a mileage logbook for medical and charity-related drives as well. These expenses are deductible on your tax returns and you’ll need detailed records to support your claims.

How to track miles: Spreadsheets, journals, and mileage tracking apps

While there’s technically nothing stopping you from tracking miles in a PowerPoint presentation or a manuscript scroll, most people (and the IRS) prefer mileage reports from a tracking app, a spreadsheet, or a well-organized ledger. Let’s compare the three options:

Paper mileage logs 

Pros

• A paper ledger is easy to use — all you need is a pen and a notebook. 
• It’s cost-effective for very small teams and solopreneurs, if driving is not a significant part of the business. 

Cons

• They waste time: Updating a paper log every time you complete a drive takes attention away from work and can be very annoying.
• It’s easy to make mistakes and either under or overestimate mileage — which means losing out on savings or over-reimbursing.
• Like all paper records, mileage logbooks are very easy to misplace or destroy — one careless swipe near a coffee cup and valuable mileage records are gone. 
• They don’t work at scale — reviewing piles of paper logs is hard and tedious work that will only get more confusing as your business grows.

Spreadsheet logbooks

Pros

• Spreadsheets make mileage calculations a bit easier (compared to manual logging).
• They’re also easier to secure and harder to misplace.

Cons

• It doesn’t save time: Drivers still need to record their mileage somewhere before adding it to a spreadsheet, which means manual tracking.
• Spreadsheets are quick to get messy and confusing when a lot of data (drives) is added over time.
• Admins still need to go in and calculate mileage amounts using a formula. 

Mileage tracking apps

Pros

• They’re easy to use and track mileage automatically — drivers don’t need to remember to stop and update a log.
• Sending mileage reports is simple and most apps calculate reimbursement amounts for you. 
• There’s always a record of mileage to come back to — whether you need to review a drive or provide proof for the IRS. 
• Simple to scale — a mileage tracking app will work just as well for a team of five as it would for a team of 20. That means you won’t have to find a new way to handle mileage whenever your team size changes. 

Cons

• More comprehensive mileage features (like auto-generated reports or approvals) are paid. Though many mileage trackers, including MileIQ, offer free trials so you can decide if you really need a feature before purchasing. 
• Some drivers get concerned about privacy with mileage tracking apps. With the MileIQ app, it’s easy for drivers to turn off location tracking when they’re not driving for work.

Final thoughts

When it comes to mileage tracking, easier is better (after all, who wants to spend more time doing paperwork?). That’s why even solopreneurs and small teams often choose to use an app over other methods. But whatever option you choose for yourself or your business, a detailed mileage logbook is your savings partner!