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Freelancers and consultants

Mileage tracking for freelancers

If you work for yourself, the drives you make for the work are a business expense: from one client to the next, out to pick up supplies, and, with a home office that qualifies, from home to the first client and back from the last. OdoTax records every drive on its own, you mark each one business or personal, and at tax time the report gives the total for Schedule C, the business part of your federal tax return.

$3,785.60

on Schedule C, line 9 (car and truck expenses) for a year of driving to clients in 2026, with a home office that qualifies: 5,096 miles, 2,496 of them at 72.5¢ to June 30 and 2,600 at 76¢ after. It lowers the profit that is taxed; it is not money back.

A year of client visits, worked both ways in our guide to home office and mileage.
A consultant on her way to a client, a laptop under her arm and a car key in her hand.

New to this?

Three terms this page uses

Three terms you'll meet all through this page; the rest are explained at the foot of the page.

Deduction
A cost taken off the profit you pay tax on. It is not a refund: nobody pays it back to you.
Standard mileage rate
The IRS's amount per business mile, which stands in for what the car costs to run: 72.5¢ for drives through June 30, 2026, and 76¢ from July 1.
Schedule C
The part of your federal tax return where a business you own by yourself reports what it took in and what it cost. The car's business miles go on line 9, Car and truck expenses.

Is this you?

Who can deduct their driving

You can if the work is your own business: you take work from your own clients, who pay you for the result and leave the how to you, with no tax taken out, whether a 1099 comes or not. You own the business alone, with or without an LLC, as long as the LLC hasn't chosen to be taxed as a corporation. If a client pays you on a W-2, you can't deduct the driving it doesn't pay back on your federal return, apart from a few groups the law names, such as Armed Forces reservists.

A comparison of a W-2 employee and a 1099 contractor. Who decides how the work is done: the employer, or you. Tax taken out of each payment: yes for the employee, no for the contractor. Social Security and Medicare: split with the employer, or all yours, as self-employment tax. Car, phone and tools: usually the employer's, or paid back, for the employee; the contractor's own, with the share used for work deductible. Where the income goes on your return: the wage line of Form 1040, or Schedule C, as business income.

You can be both in one year: an employee at one job and self-employed for your own clients. Only your own work is a business on your return, and the drive to your employer stays a commute, even with an office at home for the freelance work. What is a 1099 contractor? explains how to tell.

What counts

Which drives are business miles

The drives you make for the work count: to a client's office or home, from one client to the next, and out to pick up supplies or drop something off for a client. Driving for yourself or your family doesn't, and neither does a commute: home to a W-2 job, or home to an office or coworking desk you rent and work at regularly, unless your home office qualifies. Whether the first drive of the day from home counts depends on where you work from, which comes next.

Two lists of drives for a freelancer. Counts: to a client's office or home, for the work, a meeting or a pitch; from one client to the next, one workplace to another; to pick up or drop off work, such as supplies, equipment or something for a client; and parking at a client's and tolls on the way, added at what you paid. Doesn't count: home to an office or coworking desk you rent, which is commuting however far, unless your home office qualifies; home to your W-2 job, which is commuting even with a home office for your own work; home to a client you have gone to for over a year, which is not temporary and so is commuting, unless your home office qualifies; and errands for yourself or your family, which are personal driving.

Publication 463, the IRS's guide to travel, gift and car expenses, counts “Visiting clients or customers” and “Going to a business meeting away from your regular workplace”, and its example of a car used for business is one used to “visit the offices of clients, meet with suppliers and other subcontractors, and pick up and deliver items to clients.” Purpose lines by trade shows how to name each drive in the log.

From home

The first drive of the day, and the home office rule

Driving between home and your regular place of work is commuting, and with no office anywhere Publication 463 picks one for you: your first client of the day. One rule changes that: “If you have an office in your home that qualifies as a principal place of business, you can deduct your daily transportation costs between your home and another work location in the same trade or business.”

Two conditions turn the drive from home into business miles. The home office: your principal place of business, under section 280A(c)(1)(A); qualifying another way, such as a room where you regularly meet clients, is not enough. The stop: another work location in the same business, regular or temporary, regardless of distance; a client of years counts the same as a new one. Another business: the home office rule does not cover it. Weekend photography office at home, weekday drive to an employer's office: still commuting.

The Schedule C instructions count that travel “regardless of whether that location is regular or temporary and regardless of distance,” so a client you have seen every week for years counts the same as a new one. It covers one business only: an office at home for your freelance work doesn't make the drive to an employer's office business miles. Without a home office that qualifies, home to a client counts only when the client's place is temporary and you either have a regular workplace elsewhere or the client is outside your metro area. This is general information from IRS Publications 463 and 587, not tax advice (three cases, side by side).

Your desk at home

When the desk at home is your place of business

Publication 587, the IRS's guide to business use of your home, weighs where the most important work is done and where you spend the most time, which can point to home if you do the paid work itself at your desk there. It also gives two requirements, and an office that meets them qualifies even if the paid work is done at clients' places: you use it “exclusively and regularly for administrative or management activities” of the business, and you have “no other fixed location where you conduct substantial administrative or management activities.” Its examples of those activities are billing clients, keeping books and records, ordering supplies and setting up appointments.

When the office at home is your principal place of business. It qualifies: a room, or a corner of one, used only for the business, with no permanent partition needed; used regularly for the paperwork, such as booking, billing, ordering supplies and the books; no other fixed place where you do substantial admin, though a little there now and then is fine, and so is a desk you choose not to use; and the paid work can be done at clients' places, a shop or a studio, which does not count against the office. It does not: the kitchen table the family eats at, used for personal purposes too; a laptop on the sofa, with no space used only for the business; a space you sit in now and then to pay an invoice, since occasional use is not regular use; and a shop, studio or desk elsewhere where you do the scheduling and the books.

It needn't be a whole room: “The space does not need to be marked off by a permanent partition.” But it fails “if you use the area in question both for business and for personal purposes,” so the kitchen table the family eats at doesn't pass, and neither does a laptop on the sofa. A coworking desk where you do the billing and the books can fail the second requirement; one where you only do client work doesn't. The office's own costs are a separate deduction, on Schedule C, line 30 (the test in full).

A day

A day with two clients, two ways

Home to the first client, 9 miles; on to the second, 6 miles; and back home, 11 miles. With a home office that qualifies, all 26 miles are business. Without one, with no other regular workplace and both clients inside the metro area, the 9 and 11 mile drives are commuting and only the 6 miles between the clients count.

Rosa's day, two ways: home to client A, 9 miles; client A to client B, 6 miles; client B to home, 11 miles. When her home office qualifies, all 26 miles are business. When it does not, with no other regular workplace and every client inside her metropolitan area, the 9 and 11 mile drives from and to home are commuting, 20 miles, and only the 6 miles between clients are business.

On a day with one or two clients, the first and last legs can be most of the miles, which is why the home office question is worth settling before a year's log is built on it. In OdoTax each leg is its own drive, because a drive ends once the car has been stopped for about five minutes, so on the free plan this day is three of the month's 35. With a home office that qualifies, tap Business on all three; without one, tap Business on the drive between clients and set the other two to Commute on each drive's own page, so the report counts them as commuting miles, out of the deduction.

The deduction

A year of driving, on Schedule C

The same day, 196 times in 2026. With a home office that qualifies, 2,496 business miles through June 30 at 72.5¢ and 2,600 from July 1 at 76¢ come to $3,785.60 on Schedule C, line 9, car and truck expenses. Without one, only the 1,176 miles between clients count, $873.60, and the other 3,920 miles are commuting. The difference, $2,912.00, is the first and last drive of each day.

Rosa's 2026 mileage deduction on Schedule C, line 9, worked both ways, with bars in proportion: $3,785.60 on 5,096 business miles when her home office qualifies; $873.60 on 1,176 business miles when it does not, with the other 3,920 miles commuting. The difference, $2,912.00, is the first and last drives of her 196 working days, 3,920 miles.

It is a deduction, not money back. What it is worth depends on your whole return: self-employment tax falls by about 14¢ for every dollar deducted (only the 2.9% Medicare part, about 2.7¢, once your wages and self-employment earnings together pass $184,500 for 2026), and income tax by up to the rate your last dollar is taxed at (deduction or refund).

Gas, repairs, the car

What the rate covers, and what goes on top

The mileage rate already stands in for gas, oil, repairs and maintenance, insurance, registration, and depreciation or lease payments, so none of those is deducted on top. Business parking and tolls are added at what you paid, and so is the business share of the interest on a car loan and of state and local personal property tax on the car (a yearly tax based on its value).

Two lists. Covered by the standard rate, so not deducted on top: depreciation or lease payments; maintenance and repairs; gasoline, including gasoline taxes; oil; insurance; vehicle registration fees. Added on top, at what you paid: business parking and tolls, though parking at your place of work is commuting and is not deductible; if you are self-employed, the business share of the interest on a car loan; and, if you are self-employed, the business share of state and local personal property tax on the car. Below them: 35¢ of each 2026 business mile is depreciation, which comes off the car's basis, though not below zero.

Your laptop, your software and a hotel on an overnight trip aren't car costs: they go on other lines of Schedule C. Actual expenses are the other way to deduct the car: the business share of what it really cost to run, with receipts. Either way you need the mileage log (standard rate or actual expenses).

The records

The log the IRS asks for, and who fills it in

For each business drive: the date, where you went, why, and the miles, written down while you still remember it; once a week is enough. For the car, once a year: its total miles, the date it went into business use, and what it cost. OdoTax records the date, both addresses and the miles as you drive; the purpose, naming the client or the job, is yours to add, and so are the odometer readings at each end of the year and the date the car went into business use. What it cost isn't kept in OdoTax, so keep the purchase papers.

What a log shows for every business drive, one business drive as an example: the date, June 29, 2026; where you went, Harbor Dental; the business purpose, a network install; and the miles, 28.4. For the car, once a year: what it cost, and any improvements; the date you started using it for business; and its total miles for the year, from the odometer on January 1 and December 31.

A drive you can't prove isn't deductible, and an estimate can't take its place. Keep the log at least 3 years from the day you file (what the IRS wants in a mileage log).

Common mix-ups

What people often get wrong

Things freelancers often hear about tax and driving, and what the rules say.

Often heardThe rule

Every drive from home to a client is deductible.

Only with a home office that qualifies, or when the client's place is a temporary work location and you either have a workplace away from home that you work at regularly or the client is outside your metro area. With no office and no home office that qualifies, Publication 463 treats your first stop as your office, so home to the first client and back from the last are commuting.

Instructions for Schedule C: Part IV, line 44b (opens in a new tab)

I work at home, so I have a home office.

Working at home isn't the test. Publication 587: “To qualify under the exclusive use test, you must use a specific area of your home only for your trade or business.” The kitchen table the family eats at doesn't pass, and neither does a laptop on the sofa.

IRS Publication 587: Exclusive use (opens in a new tab)

The drive to my coworking desk is business, because I work there.

Home to your regular place of work is commuting “no matter how far your home is from your regular place of work,” and parking there is a commuting cost. Only a home office that is your principal place of business makes it business, and with a desk elsewhere that usually means doing the billing and the books at home, in a space used only for the business, and not at that desk.

IRS Publication 463: Commuting expenses (opens in a new tab)

A client I've gone to every week for years is still a business drive from home.

Only with a home office that qualifies. A work location is temporary when the work there is “realistically expected to last (and does in fact last) for 1 year or less.” A client of years isn't one, so without a qualifying home office the drive from home to that client is commuting.

IRS Publication 463: Temporary work location (opens in a new tab)

Clients who pay me by check or through an app don't send a 1099, so that money isn't taxed.

You report “all income you receive from your business, including income not reported to you on a Form 1099.” A business client has to send a 1099-NEC only once it has paid you $2,000 or more in 2026, and a person paying for their own household never sends one; the money is yours to report either way.

IRS Publication 334: Kinds of Income (opens in a new tab)

My freelance work lost money, so it's a hobby.

Losses that are normal for a business starting out are one fact among many. The law assumes an activity is run for profit if it made a profit in at least 3 of the last 5 years, the current one included (they don't have to be in a row), but missing that count doesn't make it a hobby.

IRS Tax Tip 2024-55: Hobby or business (opens in a new tab)

I can deduct my gas and the mileage rate.

Not both. In a year you use the standard rate you “can't deduct depreciation, lease payments, maintenance and repairs, gasoline (including gasoline taxes), oil, insurance, or vehicle registration fees,” because the rate covers them. Business parking and tolls go on top.

IRS Publication 463: Standard mileage rate (opens in a new tab)

I can work out my miles from my calendar at tax time.

“You can't deduct amounts that you approximate or estimate.” A calendar can back up a drive rebuilt one at a time, but a log written at or near the time is the record the rules ask for, and a weekly log counts.

IRS Publication 463: Recordkeeping (opens in a new tab)

OdoTax decides which drives were for a client.

You do. OdoTax suggests, and a suggestion sorts a drive only when you accept it, unless you turn on Auto-classify or save a route as a frequent drive.

OdoTax help: How does OdoTax know which drives are for work?

What OdoTax does

The app, the website and the report

Drives are recorded on the phone; you sort them and make reports in the app or on the website.

Every drive, logged on its own

The phone notices when you pull away and when you stop, and records the route, both addresses and the miles, with or without signal in a client's parking garage.

Business or personal in one tap

Drives wait until you have a free minute, then come up one at a time: tap Business or Personal. Hold Business to pick why: a purpose of your own, such as Site visit — Harbor Dental, or one OdoTax starts you with, such as Customer visit or Meeting.

Home, an office and your hours

Save your home and an office or coworking desk you rent as Home and Work, and drives between them are offered as Commute, kept out of the deduction but counted for Schedule C. A drive from or to Home is suggested as personal, so if your home office qualifies, mark those Business, and leave the desk as an ordinary place rather than Work, because home to it counts too. Give evenings or weekends work hours if that is when you work.

The weekly client, sorted as it arrives

Save a route you drive every week, such as your office to a client's, and every drive on it is sorted the moment it arrives; the way back is a route of its own. OdoTax suggests the routes you keep sorting the same way.

Parking and tolls with the drive

Add what you paid at a client's garage to the drive it belongs to; on a business drive it goes on top of the miles. OdoTax keeps the amounts, not the receipts: keep the receipt for anything $75 or more.

A report for Schedule C, or for a client

Every drive priced at its own date's IRS rate, as a PDF to keep with your return or send to your accountant, and a CSV, from the app or the website. In the app you can also send a single drive, as its own PDF and CSV, to a client who pays a travel fee.

At tax time

Where the report goes on your return

Every report comes as a PDF and a CSV. The PDF's first page has the total for Schedule C, line 9 and the car's figures for Part IV (the questions about your vehicle); its last page prints Part IV's yes-or-no questions with boxes for you to tick, and has a line for your signature. OdoTax doesn't file your return or connect to tax software: you or your preparer type the figures in.

Where the OdoTax report goes on Schedule C, for a freelancer's car in tax year 2026. The report's first page, Deduction by form, has a row named Schedule C, line 9: $3,785.60, from 5,096 business miles, each drive at the rate for its date; it goes on line 9, car and truck expenses, $3,785.60. The vehicle information table's In service date, set as In business use since on the website, goes on line 43, when the car went into business use. Its business, commute and other miles, 5,096, 0 and 6,300, counted from the drives OdoTax recorded, with the odometer at 38,420 at the start and 49,816 at the end from your readings, go on lines 44a, 44b and 44c. The last page, Records, with Part IV's yes-or-no questions, how the log was kept and a line for your signature, goes with lines 45 to 47b, personal use and written evidence. You or your preparer type the figures in: OdoTax doesn't file returns or connect to tax software; the miles count the drives OdoTax recorded, and the odometer readings show the car's whole year; loan interest and personal property tax aren't in the report, since their business shares go on lines of their own; if you also file Form 4562, the depreciation form, lines 43 to 47b go in its Part V instead; keep the PDF and its trip log with your return.

Save your accountant as a contact and tap Email this report: they get the PDF attached and links to both files for 60 days, with no account needed (what the report contains).

Questions

What people ask first

Is this for me?

Yes, if the work is a business you run for yourself: you do it mainly to make a profit, regularly rather than now and then, and nobody takes tax out of what clients pay you. Its business miles go on Schedule C, line 9, at the IRS standard mileage rate (72.5¢ a mile through June 30, 2026, 76¢ from July 1) or as the business share of the car's running costs, such as gas, repairs and insurance, plus business parking and tolls; you don't need an LLC or a 1099 for that. Three limits apply: the drive between home and your regular place of work is commuting and doesn't count unless a home office is your principal place of business, you need a record of each business drive kept as you go, and the mileage rate is open to a car you own only if you used the rate for that car's first year in your business. The total lowers the profit you're taxed on; it isn't money back (Schedule C, line by line).

Not by itself: losses that are “normal in the startup phase of your type of business” are one of the facts the IRS weighs, and “No one factor alone is decisive.” The tax code also assumes an activity is run for profit if it made a profit in at least 3 of the last 5 years, the current one included, and they needn't be in a row; missing that count doesn't make it a hobby, it only means that rule doesn't help you. The answer matters most in a year like this, because a business loss on Schedule C can lower the tax on your other income, such as wages, within limits (the at-risk rules, for one, generally let you claim a loss only up to what you could actually lose in the business), while a hobby's loss can't be used against other income. So keep what shows you're working to make it pay: contracts, invoices, marketing, prices you changed, and the mileage log. If it has run at a loss for several years, talk to a tax preparer before you claim the miles.

Only the drives for your own clients, and the rules for the first and last drive of the day apply to that work as a business of its own. The drive from home to your employer never counts, and an office at home for the freelance work doesn't change that, because the home office rule covers only drives in the same business. A drive straight from your W-2 job to a client does count: Publication 463 lets you deduct “the expense of getting from one workplace to the other.” Nobody withholds tax from what clients pay you, so you may need to pay estimated tax or have more withheld at your job (the home office rule).

Not on your federal return: an employee can't deduct driving the employer doesn't pay back, and the 2025 tax law made that permanent, apart from a few named groups such as Armed Forces reservists (IRS Notice 2026-10). What you can do is ask your employer to pay the miles back; under an accountable plan, where you show the miles and return anything paid over, that money isn't income to you. An OdoTax report made with your employer's rate per mile prints as a mileage reimbursement claim. The drives for your other clients are your own business, and the rest of this page applies to them (who can use the business rate).

Yes to both: Publication 334, the IRS's tax guide for small business, says to report “all income you receive from your business, including income not reported to you on a Form 1099 filed by the payor,” and your business costs, the miles included, come off it on Schedule C. A business client sends a 1099-NEC only if it paid you $2,000 or more in 2026 ($600 through 2025) and didn't pay by card or through a payment app, and a person paying for their own household sends none, because the form is only for payments made in the course of a business. A payment app or online marketplace has to send a 1099-K once it has paid you more than $20,000 in more than 200 payments in the year, and may send one below that. Keep your own record of every payment (where the 1099 comes from).

You don't need an LLC: a business you own alone is a sole proprietorship and files Schedule C, and so does a one-owner LLC unless you chose to have it taxed as a corporation. A married couple who run it together, file a joint return and both materially participate (take part regularly and substantially) can choose to be a qualified joint venture, so each files a Schedule C for their share, but only if the business isn't an LLC or another state-law entity; otherwise two owners, a two-member LLC included, are generally taxed as a partnership unless they chose otherwise, and the business's costs go on the partnership's return, not on a Schedule C of yours (couples in community property states have rules of their own). If you work in your own S corporation, the IRS treats you as its employee, so the usual route is for the corporation to pay you back for business miles under an accountable plan, and that payment isn't income to you. Either way the same mileage log backs the numbers; set it up with your accountant.

Which drives count

The drives you make for the work: to a client's office or home, from one client to the next, and to pick up supplies or drop something off for a client. Publication 463 counts visiting clients and business meetings away from your regular workplace, and its example of business use includes meeting suppliers and picking up and delivering items to clients. Driving for yourself or your family is personal, and home to an office or coworking desk you work at regularly is commuting unless your home office qualifies. Whether the first drive from home counts depends on where you work from, which is the next question; name the client or the job in each drive's purpose (purpose lines by trade).

It depends on where you work from. With a home office that qualifies as your principal place of business, home to any client counts, a regular one or a new one, at any distance, and so does the drive back. With a workplace away from home that you work at regularly, such as an office you rent, home straight to a client whose place is a temporary work location counts, but home to that office doesn't. With neither, the first and last drives of the day are commuting unless the client's place is a temporary one outside your metro area, and the drives between clients count in every case (three cases, side by side).

It can, if your home is the business's principal place of business. Publication 587 weighs where the most important work is done and where you spend the most time, and gives a test most home offices are judged by: you use a specific area “exclusively and regularly for administrative or management activities” of the business, such as billing clients, keeping the books, ordering supplies and setting up appointments, and you have “no other fixed location where you conduct substantial administrative or management activities.” A corner of a room can pass with no partition; a desk the family also uses fails. When your home qualifies, every drive from home to a client or another work location of the same business counts, regular or temporary, at any distance. Whether yours does is for you and your tax preparer; this is general information from Publication 587, not tax advice (the home office test).

Yes, if you work there on a regular basis and your home office doesn't qualify: home to it and back is commuting “no matter how far your home is from your regular place of work,” and parking there is a commuting cost too. It helps with everything else: drives from it to a client count, and so does home straight to a client whose place is a temporary work location, and back. If you do the billing and the books at home in a space used only for the business, and not at that desk, the home office can be your principal place of business, and then home to the coworking space counts too. Whether a desk you drop into now and then is a regular place of work isn't settled by Publication 463, so ask your tax preparer (three cases, side by side).

From home, only with a home office that qualifies. A work location is temporary when the work there is “realistically expected to last (and does in fact last) for 1 year or less”; a client you have gone to every week for years, or expect to keep for more than a year, isn't one, so without a qualifying home office the drive from home to that client is commuting. With one, the Schedule C instructions count travel to another work location in the same business “regardless of whether that location is regular or temporary and regardless of distance.” The drive from that client on to another client counts either way (three cases, side by side).

Publication 463 makes your first stop your office: “the location of your first business contact inside the metropolitan area is considered your office.” So home to the first stop of the day and the last stop back home are commuting, and every drive between them is business: client to client, a client to the office supply store. On a day with one client in town and nothing else, that can mean no business miles at all. Home to a temporary location outside your metro area, and back, counts; a metro area is “the area within the city limits and the suburbs that are considered part of that metropolitan area,” with no distance in miles, so for a client near the edge, ask your tax preparer (why the drive from home is usually commuting).

A lunch stop doesn't break it: Publication 463 says “Minimal personal use, such as a stop for lunch on the way between two business stops, isn't an interruption of business use.” A real detour is different: if for a personal reason you don't go straight from one client to the next, you “can't deduct more than the amount it would have cost you to go directly,” so count the direct route's miles. OdoTax records the drive as you drove it and can't shorten a recorded drive's miles, so for a detour, write the direct route's miles in the drive's note, which goes into the report's CSV, for your tax preparer (round trips and routes).

Your own car's business miles count wherever the client is, priced on line 9 like any other drive, and a day trip to a client outside your metro area, for work there expected to last a year or less, counts from your driveway and back, even with no office or home office that qualifies. Staying overnight makes it travel: you're “traveling away from home” when the work keeps you away from the general area of your tax home (generally your regular place of business, or, if you have none, possibly where you regularly live) “substantially longer than an ordinary day's work” and you need sleep or rest, and then the hotel and airfare go on line 24a and meals on line 24b, generally at 50%. If the trip is mainly for the work and you stay on for a vacation, getting there and back still counts but the extra days' costs don't, and someone who comes along, such as your spouse, counts only if they're your employee or a business associate, such as a client or a supplier, with a real business reason to be there. In OdoTax a flight never becomes a drive, and the drives to and from the airport are recorded like any other; Airport / travel is one of the purposes it starts you with. Work abroad has more rules, in Publication 463, chapter 1, so ask your tax preparer (where travel goes on Schedule C).

The deduction, and where it goes

Schedule C, Profit or Loss From Business, is the part of your federal return where a business you own by yourself reports what it took in and what it cost; what's left is the profit that income tax and self-employment tax are figured on. Your car shows up on it twice: what its business miles come to on line 9, Car and truck expenses, and its use in Part IV, Information on Your Vehicle (when it went into business use, and its business, commuting and other miles). You don't have to itemize: business miles come off your profit, which carries over to your Form 1040 through Schedule 1, so you can take the standard deduction as well. Itemizing matters only for medical and charity miles (Schedule C, line by line).

It's one IRS amount per business mile that stands in for what the car costs to run: for 2026, 72.5¢ for drives through June 30 (Notice 2026-10) and 76¢ for drives from July 1 (Announcement 2026-11), raised because fuel prices went up. Each drive gets the rate for its own date: the year in our home office guide has 2,496 business miles before July 1 and 2,600 after, which come to 2,496 × $0.725 + 2,600 × $0.76 = $3,785.60 on line 9. OdoTax prices every drive by its date, so the two halves add up on their own (the 2026 rates).

No: a deduction lowers the profit you're taxed on, and the dollar amounts OdoTax shows on your drives are that deduction, not cash. On Schedule C it lowers self-employment tax by about 14¢ for every dollar deducted (15.3% on 92.35% of profit), which at 76¢ a mile is about 10.7¢ a mile, as long as your wages and self-employment earnings together stay under $184,500 for 2026; above that, only the 2.9% Medicare part is left. For the year in our guide, with $3,785.60 on line 9, that's $3,785.60 × 92.35% × 15.3% = $534.89 less self-employment tax. Income tax falls too, by up to the rate your last dollar is taxed at, and what that adds up to depends on your whole return, so OdoTax shows the deduction, not a saving (deduction or refund).

Yes, the profit is taxable however small it is: income tax is figured on it with the rest of your income, and self-employment tax is owed once your net earnings from self-employment reach $400 for the year. Both come after costs, and on a small business the car is often the biggest one. Say your work brought in $6,000 and your only cost was 2,000 business miles in the fall: at 76¢ a mile that's $1,520, which leaves $4,480 of profit. Self-employment tax is then $4,480 × 92.35% × 15.3% = $633.00, against $847.77 without the miles, $214.77 less, and income tax can fall too, by up to the rate your last dollar is taxed at, depending on the rest of your return (what changes at tax time).

Yes, and yes. A travel fee is part of what the client pays you, so it goes on Schedule C, line 1, with the rest of what clients paid you (the line for gross receipts): Publication 334 says to report “all income you receive from your business.” The drive is deducted on line 9 like any other business drive, so the fee doesn't cancel the miles and the miles don't cancel the fee, and the IRS rate isn't a price list: charge per mile, a flat fee or past a radius, as you like. If a client instead pays back a trip's actual costs against your records, Publication 463 has rules of its own for accounting to a client, so ask your tax preparer. To show a client the drive behind a fee, open it in the OdoTax app and tap Report: they get that drive alone as a PDF and a CSV (send a report).

Usually, if you expect to owe $1,000 or more for the year after withholding and refundable credits, because nobody takes tax out of what clients pay you. For 2026 the payments are due April 15, June 15 and September 15, 2026, and January 15, 2027; they cover income tax and self-employment tax, both figured on profit after costs, so an up-to-date mileage log keeps the estimate right. If most of your income comes in part of the year, the annualized income installment method can figure each payment from what you had earned by the end of March, May or August, and the whole year for the last; you use it with Form 2210 and Schedule AI, filed with your return. If you also have a W-2 job, extra withholding there counts as paid evenly through the year, whenever it was taken out (quarterly estimated taxes).

Your car

Yes: Publication 463's own example is a car used for clients and suppliers that “you and your family use ... for personal purposes,” and on the standard rate you simply deduct the business miles. Only your business drives need the four facts (the date, where you went, why and the miles), but Schedule C, Part IV also asks for the car's total miles for the year, everyone's driving included, split into business, commuting and other; the odometer on January 1 and December 31 is the simplest proof. The date on line 43 is the day your business started using the car, not the day you bought it, and that first year is when the mileage rate has to be chosen. OdoTax records only the drives your phone is on, so your partner's drives without you aren't in it (the readings cover them), and a ride along to soccer practice is recorded for you to mark Personal. Don't sign a family member's phone in to your account: every drive it's on would land in your log and your free count (Part IV, line by line).

No: in a year you use the standard rate, Publication 463 says you “can't deduct depreciation, lease payments, maintenance and repairs, gasoline (including gasoline taxes), oil, insurance, or vehicle registration fees,” because the rate covers them, and 35¢ of each 2026 business mile counts as the car's depreciation. Of a car payment, only the interest goes on top, at the business share, and so does the business share of state and local personal property tax on the car. Business parking and tolls are added at what you paid, but parking at an office or coworking desk you work at regularly is a commuting cost, and a parking ticket never counts. Keep a receipt for any parking fee or toll of $75 or more, and the car's purchase papers; there are no fuel or repair receipts to keep (what the rate covers).

Where both are open to you, Publication 463 suggests you “figure your deduction both ways to see which gives you a larger deduction”: the standard rate is business miles times the rate for each drive's date, and actual expenses are the business share (business miles divided by total miles) of what the car really cost, with receipts. The timing matters more than the choice: for a car you own, the standard rate has to be used in the first year the car is available for use in your business, after which you can use either method each year, but a car started on actual costs can never use the rate. A car on which you claim section 179 or the special depreciation allowance (often called bonus depreciation) in its first year can never use it either, so make that choice for a car bought for the work with your tax preparer. A leased car on the standard rate stays on it for the whole lease. Either way you need the mileage log (standard rate or actual expenses).

Yes: the IRS says the standard mileage rates “apply to fully-electric and hybrid automobiles, as well as gasoline and diesel-powered vehicles.” With the rate you don't deduct charging or gas on top, because the rate stands in for what the car costs to run. Whether actual expenses would come to more for your car is the comparison in the question above.

Maybe not on that car. The Schedule C instructions allow the standard rate only if you “owned the vehicle and used the standard mileage rate for the first year you placed the vehicle in service,” and Publication 463 says that choice is made “by the due date (including extensions) of your return” for that first year. If 2026 is the first year the car works for your business, choose the rate on your 2026 return; if you have driven it to clients since an earlier year you never claimed, ask a tax preparer which method it can use before you file. Actual expenses are open to it and need the same mileage log, and the next car you put to work gets its own first year.

The records you need

For each business drive, Publication 463's Table 5-1 asks for four things: the date, where you went, the business purpose and the miles. For a freelancer the purpose names the client or the job, such as “Site visit — Harbor Dental” or “Workshop, Reyes & Co.”; “business” on its own is too thin. Once a year, for each car, it also asks for the total miles, the date it went into business use and what it cost. It has to be written at or near the time, while you still remember the drive; a log kept weekly counts, and paper, a spreadsheet and an app all qualify. OdoTax records the date, both addresses and the miles as you drive, and the purpose is yours to add (what the IRS wants).

A business drive you can't prove isn't allowed, and no part of it can be allowed on a guess: “You can't deduct amounts that you approximate or estimate.” A penalty can come on top: 20% of the tax underpaid through negligence, and the tax regulations count failing to keep adequate records as negligence. Keep the log at least 3 years from the date you file (a return filed early counts as filed on the due date), so a 2026 log on a return filed by April 15, 2027 is kept until April 15, 2030, and keep each year's business-mile total until 3 years after you file for the year you sell the car, because standard-rate miles lower its basis. The IRS doesn't approve or certify mileage apps: what counts is what's in the log and when it was written, and OdoTax's PDF is laid out the way Publication 463 describes, with the purposes and the weekly sort yours to add (keep records for years).

Not for the rest of the year: from the day you turn tracking on, every drive is recorded as you go. For January to now you can't estimate, but you can rebuild drives one by one from what you kept at the time: signed contracts, invoices, your calendar, emails with the client or your phone's location history; a calendar backs up a drive, but it isn't the log. If Google Maps Timeline was on, OdoTax can import the drives it kept, and you can add others by hand; the report marks both, and on the free plan they count toward each month's 35 like any other drive, so with more than that to rebuild in a month, go Pro first. A rebuilt drive counts only as far as that evidence backs it up, and it weighs less than one logged at the time. Logging October to December doesn't prove the summer either: Publication 463 lets part of the year stand for the whole only when other evidence shows that part is representative, and a busy stretch isn't typical of a quiet one.

To change a return you already filed, you file an amended return, Form 1040-X, generally within 3 years after you filed it or 2 years after you paid the tax, whichever is later, and if the new figures show less tax, the IRS refunds what you overpaid. The proof rules don't change: no estimates, and a drive rebuilt now counts only as far as contracts, invoices, calendars or a location history from that time back it up. The method is a second question: Publication 463 says the standard mileage rate is chosen “by the due date (including extensions) of your return” for the car's first year in your business, so an amended return may not be able to choose it. OdoTax accepts drives added by hand or imported from Google Maps Timeline back to January 1 three years ago and prices each at the IRS rate for its own date; on the free plan they count toward that month's 35 like any other drive, so for a month with more than that, go Pro first, or an import stops at the limit and a drive added past it lands locked and hidden from the list. Ask a tax preparer first whether amending is worth it and which method your car can use for those years (a log rebuilt after the fact).

How OdoTax works

No. Between drives the phone's motion sensors, and a boundary around where it last stopped, notice when you pull away; OdoTax then switches GPS on, records the route and the miles, and ends the drive once you've been stopped for about five minutes, with OdoTax closed and the phone in your bag. That works as long as location is set to Always on an iPhone, or Allow all the time on Android, with Precise on; allow Physical activity (Motion & Fitness on an iPhone) too, or a drive can be noticed a mile or two in, and on Android set battery use to Unrestricted; Settings → Tracking configuration shows anything still missing. Moving the car across a parking lot isn't kept: drives shorter than 0.2 mile or a minute are dropped. On an iPhone you can end a drive as you park with Stop drive on the Lock Screen, or by telling Siri “End my drive in odo” (on your home screen the app is called odo) (how detection works).

Little. On most days the car is parked most of the time, and between drives OdoTax doesn't track where you are: the phone waits for the next drive with the motion sensors it already runs and a boundary around where it last stopped, and GPS runs at full accuracy only while a drive is being recorded. What to watch is the phone's own power saving: on an iPhone, Low Power Mode can slow background work, and on Android a battery saver that limits location can make drives go missing or end early; Settings → Tracking configuration warns about both. On Android you'll see a notification the whole time, “Ready to detect a drive” and then the miles so far, because Android requires one from any app that uses location in the background (battery use).

Yes. The route and the miles come from the phone's GPS, which needs no internet; the drive is kept on the phone and uploads by itself once you're back in signal, and until then Home says “N drives tracked offline.” Sorting or editing a drive and adding an odometer reading need a connection, so do those later. Silent mode and Do Not Disturb don't stop it either, because detection doesn't depend on notifications at all; by default OdoTax sends one reminder a week, on Sunday evening, when drives are waiting to be sorted. A site with no street address is still recorded where you parked, and to find the spot by name next time, save it under Settings → Named places → Add place → My location doesn't have an address — pick on map (without a connection).

Each drive waits until you say what it was: on Home, tap Classify and the drives come up one at a time, tap Business or Personal, or press and hold Business to pick a purpose; on the website you can tick a whole day and mark it at once. The purpose is the line the report prints to say why a business drive was made, and a business drive without one shows “Not recorded” in the PDF. OdoTax starts you with purposes such as Customer visit, Meeting, Errand / supplies and Airport / travel, and you add your own, up to 40 characters, under Settings → Custom purposes: “Site visit — Harbor Dental”, “Workshop — Reyes & Co.”, “Client meeting”, “Supplies”. After you hold Business and pick one, a single tap on Business sorts the next drive with that same purpose, and the PDF prints each end of a drive as a street address, not your name for the place, so name the client in the purpose. Sorting once a week is enough: a log kept weekly counts as written at or near the time (business or personal).

Until you change it, yes: work hours start as Monday to Friday, 9 to 6, so a drive inside them is suggested as business and one outside as personal, and a Saturday at a client's comes up as personal. A suggestion sorts a drive only when you tap Apply, unless you turn on Auto-classify, which sorts drives by the clock without asking, so set your hours before you switch it on. Under Settings → Work hours, tap Saturday or Sunday to give it hours, or Add shift for evening work, or switch the off-hours suggestion off (on the website, Settings → Classification → Off hours = personal). Saved places and frequent drives are suggested before the clock, so a drive from or to your saved Home is still suggested as personal, and on an irregular week you may prefer to switch work hours off and sort each drive with a tap (sorting by schedule).

It suggests it: under Settings → Named places, save your home with the kind Home and the office or coworking desk with the kind Work, and drives between them are offered as Commute, kept out of the deduction but counted, because Schedule C asks for the car's commuting miles. Drives from that office to a client are offered as business. A drive from home straight to a client is suggested as Personal, because one end is home, so mark it Business when the rules for your setup say it counts. If your home office qualifies, leave the office as an ordinary place, so drives from home to it aren't offered as Commute (the commute).

Yes. In the app, open Drives and tap +, pick From and To (a saved place or an address), and OdoTax measures the road between them; change the distance if you went another way, then set the time, the vehicle and the purpose, or on the website use Trips → Add a drive. The drive says Added by hand, with an asterisk in the PDF, and that isn't a mark against it: a log kept by hand is still a log. Drives can be added back to January 1 three years ago, and on the free plan a month that already has its 35 free drives takes no more added by hand. If drives keep going missing, check Settings → Tracking configuration first (a missed drive).

Getting the app, and what it costs

OdoTax runs on an iPhone with iOS 17 or newer and on Android 7 or newer, and the same account opens in any browser at my.odo.tax, where a month of drives fits on one screen. It isn't listed in the App Store and Google Play yet, so Get the app on this page (odo.tax/get) leads to the test version: TestFlight, Apple's app for testing new apps, on an iPhone, and the Android test on Android. If you carry a personal phone and a work phone, sign in to one account on both: each records the drives it's on, and when both record the same drive, OdoTax keeps one. The app, the website and the reports are in English, built for US tax returns (the web account).

The free plan covers 35 drives each calendar month; it needs only an email (no card), doesn't expire, and includes everything else, PDF and CSV reports too. Every drive counts toward the limit, personal ones too, and a long stop starts a new drive: the day with two clients on this page is three drives, a 20-minute stop at a store splits a trip in two, and a weekday commute to a W-2 job is two drives a workday on its own. The year on this page, 196 such days, is 588 drives, about 49 a month before any personal ones. Drives past the limit are still recorded but arrive Locked, left out of totals and reports, and the count starts again on the 1st; Settings shows how many free drives are left this month. Pro removes the limit for $7.99 a month or $74.99 a year (the free limit).

Yes: a monthly plan can be canceled any time, Pro runs to the end of the period you paid for, the account then goes back to the free plan, nothing is deleted, and drives recorded while you were paying stay open for good. Drives locked in a month on the free plan stay locked when you subscribe later, though, and once they're out of reach they're hidden from the list, not deleted: only an account's first payment for Pro also reopens the 31 days before it, and only once, so start Pro before a busy month passes 35 drives, not after. Nine months of Pro cost $71.91 month by month; from ten months on, the $74.99 year is cheaper. A plan is managed where you bought it: the App Store, Google Play or the website (change or cancel).

At tax time

A report, as a PDF and a CSV: in Reports, pick a period (last tax year, a quarter, the year so far, or your own dates), all drives or business only, and a car if you have more than one. Before you make it, sort every drive still waiting, because an unsorted one adds nothing, fill in any purpose the report would print as “Not recorded,” add your odometer readings, and set the car's In business use since date under Vehicles on the website. The PDF's first page has the figures for Schedule C, line 9 and Part IV, and OdoTax doesn't connect to tax software, so you or your preparer type them in, whatever you file with; the CSV opens in any spreadsheet. To hand it over, save your accountant once as a contact and tap Email this report; they don't need an account (send a report).

No. OdoTax keeps the log and applies the IRS standard mileage rate to the drives you mark as business; which drives are business for your work, whether your home office qualifies, and whether the standard rate or actual costs suit your car are for you and your tax preparer. The rules on this page come from IRS Publications 463, 587 and 334 and the Schedule C instructions, and our guides quote them, starting with home office and mileage.

Privacy

“All the time” (Always on an iPhone) is what lets OdoTax catch a drive that starts while OdoTax is closed; with “only while using,” it records nothing unless OdoTax is open on screen, and during a drive it usually isn't. It also needs Precise location, because a log built from rough positions isn't accurate enough to claim. GPS runs at full accuracy only while a drive is being recorded: once you've parked at a client's, the drive ends there and the phone waits for the next one; between drives it is asked where it is when you use Locate in your web account to find a lost phone, an answer kept for 30 days, or when OdoTax support looks into drives that went missing. For hours you don't want logged, Settings → Pause auto-tracking in the app stops detection For 1 hour, For 4 hours, Until tomorrow 9am or For the rest of today, on every phone on your account; nothing is recorded meanwhile, business drives included, but you can add one by hand (what data is kept).

Your clients see a drive only in a report you send them. For each drive OdoTax keeps the route, both addresses, the miles and the times, plus what you add. A map service fits the GPS points to the roads and an address service turns the two ends into street addresses, and under the privacy policy service providers like these get only the data their job needs. Whoever you send a report to sees the addresses of both ends of each drive in it and your purposes, client names included, and in the CSV your notes and your names for saved places too, but not the route; make a report for business drives only and your personal stops stay out. If you connect OdoTax to Claude, it is sent your drives, totals and saved places when it asks, never a drive's GPS track, and if you report a problem with a drive, a person on the OdoTax team looks at it (what data is kept).

Words on this page

The terms, in plain English

Every term on this page, in a line or two.

Publication 463
The IRS's guide to travel, gift and car expenses; most of the rules on this page are quoted from it.
Publication 587
The IRS's guide to business use of your home, with the test a home office has to pass.
Publication 334
The IRS's tax guide for small business, including what counts as business income.
Self-employed (1099 contractor)
You're paid for the result of the work, not managed as an employee, and nobody takes tax out of what you're paid; the other name comes from the 1099 forms that report what you were paid.
1099-NEC
The form a business sends you, and the IRS, when it paid you $2,000 or more in 2026 ($600 through 2025) for work done for that business; a person paying for their own household sends none. The income counts whether or not one arrives.
1099-K
The form a payment app or online marketplace sends once it has paid you more than $20,000 in more than 200 payments in a year (some send one below that), and a card processor sends for card payments of any total; the income counts whether or not one arrives.
W-2 employee
Someone whose employer takes tax out of each paycheck and sends a Form W-2 in January; on a federal return, an employee can't deduct driving the employer doesn't pay back, apart from a few groups such as Armed Forces reservists.
Withholding
Tax an employer takes out of each paycheck and pays in for you; nobody withholds tax from what you earn in your own business, which is why estimated taxes may be due.
Sole proprietor
Someone who owns a business alone and hasn't made it a corporation, and reports its income and costs on Schedule C of their own return.
Single-member LLC
A limited liability company (LLC) with one owner, who reports its income and costs on Schedule C like a sole proprietor unless the LLC chose to be taxed as a corporation.
S corporation
A corporation whose profit is taxed on its owners' returns; an owner who works in it is treated as its employee.
Partnership
How the IRS taxes a business with two or more owners, a two-member LLC included, unless it chose otherwise; the business's costs then generally go on the partnership's own return, not on a Schedule C.
Business (for tax purposes)
Something you do mainly to make a profit, regularly rather than now and then; a business you own alone goes on Schedule C.
Hobby
Something you do mainly for pleasure rather than profit; its income is still reported, on Schedule 1, line 8j, but none of its costs, the miles included, can be deducted.
Schedule C
Profit or Loss From Business: the part of your federal return where a business you own by yourself reports what it took in and what it cost.
Form 1040
Your federal income tax return; Schedule C and Schedule 1 go with it.
Schedule 1
Additional Income and Adjustments to Income: the form that carries extra income to your Form 1040; a business's profit from Schedule C goes on its line 3, and a hobby's income on line 8j.
Line 9, Car and truck expenses
The Schedule C line for your car: business miles at the standard rate, or the business share of running costs such as gas, repairs and insurance (depreciation goes on line 13, lease payments on line 20a), plus business parking and tolls.
Part IV, Information on Your Vehicle
Schedule C's questions about the car: when it went into business use, its business, commuting and other miles, and whether you have written evidence.
Profit
What the business took in, less what it cost; income tax and self-employment tax are figured on it.
Deduction
A cost taken off the income you're taxed on; it is not money paid back to you.
Refund
Money the IRS sends back when you paid more tax during the year than you owe.
Self-employment tax
Social Security and Medicare tax for people who work for themselves: 15.3% of 92.35% of profit, owed once that 92.35% comes to $400 or more for the year. The 12.4% Social Security part stops once wages and self-employment earnings together pass $184,500 in 2026.
Standard deduction
The flat amount taken off your income when you don't itemize; business miles come off your profit on Schedule C either way.
Itemizing
Listing deductions on Schedule A, the itemized-deductions form, instead of taking the standard deduction; it matters for medical and charity miles, not business miles.
Standard mileage rate
One IRS amount per business mile that stands in for gas, repairs, insurance and wear: 72.5¢ for drives through June 30, 2026, and 76¢ from July 1.
Actual expenses
The other way to deduct a car: the business share (business miles divided by total miles) of what it really cost to run, backed by receipts.
Depreciation
Deducting a car's cost over several years instead of all at once; straight line spreads it evenly. 35¢ of each 2026 standard-rate mile counts as depreciation.
Section 179 and the special depreciation allowance
Two ways to deduct much of a car's cost in its first year in service, under actual expenses; the second is often called bonus depreciation. Take either and that car can never use the mileage rate.
Basis
What the car counts as having cost you for tax purposes; depreciation lowers it, though not below zero, and it matters when you sell the car.
Business mile
A mile driven for the work: to a client, from one client to the next, or to pick up supplies or drop something off for a client.
Commuting
Driving between home and your regular place of work, such as an office or coworking desk you rent; never deductible, however far. With a home office that qualifies, home to that office isn't commuting. OdoTax keeps commuting drives under Commute, out of the deduction but counted for Part IV.
Regular place of work
An office, a coworking desk or other place you work at or report to regularly.
Temporary work location
A place where the work is realistically expected to last, and does last, a year or less, such as a client's office for a project; a client you go to every week for more than a year isn't one.
Metro area
Generally the city and its suburbs; the IRS gives no distance in miles.
Home office that qualifies (principal place of business)
A space at home used only and regularly for the business that is its principal place of business: most often because you do the paperwork there (billing, the books, ordering, setting up appointments) and at no other fixed place. The paid work can be done at clients' places.
Tax home
Generally the area of your regular place of business, or, if you have none, possibly where you regularly live; travel rules start only when work keeps you away from it overnight.
Mileage log
Your record of each business drive (the date, where you went, why, and the miles) plus each car's total miles for the year.
Business purpose
One line saying why a drive was for work, naming the client or the job.
At or near the time
While you still remember the drive; a log kept weekly counts.
Odometer reading
The number on the dash on a given date; one at each end of the year proves the car's total miles.
Placed in service
The date a car started being used in the business (Schedule C, line 43); for a family car, the day your business started using it. In OdoTax it is In business use since, set on the vehicle in the web account.
Accountable plan
A way for an employer or your own corporation to pay back work miles: you account for them and return any excess, and the payment isn't income to you.
Estimated taxes
Tax paid four times a year with Form 1040-ES when nobody withholds it and you expect to owe $1,000 or more.
Form 1040-X
The form for changing a tax return you already filed.
CSV
The same drives as the PDF, in a spreadsheet file; every report comes with one, and it opens in any spreadsheet.
Locked drive
In OdoTax, a drive past the free plan's 35 in a month: recorded, but it can't be sorted and is left out of totals and reports. Going Pro opens every drive from then on, and an account's first payment also reopens the 31 days before it; locked drives older than that are hidden from the list, not deleted.
Frequent drive
In OdoTax, a route saved with its category and purpose; every drive on it is sorted the moment it arrives.

Put it on your phone

Install the app, sign in and turn tracking on. From your next drive, OdoTax records each one; you sort them when you have a minute, after a client or once a week.

Read first: when the first drive of the day counts.