Is a deduction the same as a refund?
What a deduction does
No. A refund is money coming back; a deduction lowers the income you are taxed on. What it saves depends on the rate your last dollar is taxed at. Business miles on Schedule C also lower self-employment tax — about 14 cents for every dollar deducted — so for a self-employed driver a deduction is usually worth more than the income tax alone suggests.
Medical, charity and moving miles
Medical and charity miles go on Schedule A and count only if you itemize. Medical costs count only above 7.5% of your adjusted gross income, and from 2026 charity gifts only above 0.5% of it. Moving miles are for a move under PCS orders by an active-duty service member and their family, and from 2026 for a member of the intelligence community who relocates for a change of assignment. Only the drive from the old home to the new one counts, once for each person, a spouse's own car included — not house-hunting trips, trips back, or drives around the new area. They go on Form 3903, less what the government reimbursed, and count whether or not you itemize. The report shows each separately.
Where the terms are explained
The glossary explains the terms a mileage log uses.
Related articles
- How do I export a log for my taxes?Video, 0:402 pictures
- What does the report contain?Video, 0:494 pictures
- What does the IRS want to see in a mileage log?
- How do I send a report to my accountant?Video, 0:401 picture
- How do I add my employee or reference ID to a report?Video, 0:26
- Why does my report say “Drives changed since”?1 picture
- Which mileage rate does OdoTax use?
- What if the rate changed mid-year?Video, 0:482 pictures
- Should I add odometer readings?Video, 0:351 picture
- I didn’t keep a mileage log. What can I do?
- Do parking and tolls count?1 picture
- What does Reporting year change?1 picture