Back to solutions

Small business owners

Mileage tracking for small business

If you own a business by yourself and drive for it (to suppliers, to customers, on deliveries), those drives are a business expense. The drive between home and your own shop or office usually isn't: it's commuting. 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.

$3,779.50

on Schedule C, line 9 (car and truck expenses) for a shop owner's year of business driving in 2026: 4,800 miles, 2,300 of them at 72.5¢ to June 30 and 2,500 at 76¢ after, plus $212 of parking and tolls. It lowers the profit that is taxed; it is not money back.

A worked example at the 2026 rates. The mileage calculator splits your own year at July 1.
A shop owner carrying a crate of supplies, her keys hanging from one finger.

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?

A business you own alone, on Schedule C

This page is for a business you own by yourself and report on Schedule C: a shop, a store, a service you run, with or without a one-owner LLC. The car shows up there twice, as the drawing shows: what it cost on line 9, and what it did in Part IV (where a car goes on Schedule C).

Two cards for the two places a car goes on Schedule C. Line 9, car and truck expenses, is what the car cost: at the standard mileage rate, business miles times the rate, plus business parking fees and tolls; at actual cost, the business share of the car's expenses, such as gasoline, oil, repairs, insurance and license plates. Part IV, information on your vehicle, is what the car did: line 43, when it went into business use; line 44, its business, commuting and other miles; lines 45 to 47b, yes-or-no questions about personal use and evidence. Below them: at actual cost only, depreciation goes on line 13, with Form 4562, whose Part V then takes the Part IV questions; lease payments go on line 20a.

A business owned with a partner, a two-member LLC included, is generally taxed as a partnership, and its costs go on the partnership's return, not on a Schedule C of yours. 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. Either way the same mileage log backs the numbers; set it up with your accountant.

What counts

Which drives are business miles

The drives you make for the business count: from the shop to a supplier or a wholesaler, deliveries and pickups for customers, and visits to a customer's place. An errand for the business from the shop, such as the bank or the post office, stands on the same footing, with a purpose written down. Driving for yourself or your family doesn't count, and neither does the commute: home to your shop or office and back, unless your home office qualifies.

Two lists of drives for a small business. Counts: the shop to a supplier or wholesaler, for stock, supplies or equipment; deliveries and pickups for customers, from the shop and from one to the next; to a customer's place, for a visit, an estimate or a service call; an errand for the business from the shop, such as the bank or the post office, with what it was for written down; and parking and tolls on those drives, added at what you paid. Doesn't count: home to your shop or office, and back, which is commuting however far, unless your home office qualifies; parking at your own shop, a commuting cost; a detour for yourself on a business run, where only the direct route counts; and errands for yourself or your family, which are personal driving.

Publication 463, the IRS's guide to travel, gift and car expenses, counts “Getting from one workplace to another in the course of your business or profession” and “Visiting clients or customers”, 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.” The bank and the post office aren't named there, so those runs rest on the general test that a business cost is ordinary and necessary in your line of work: write a purpose that says what the errand was (“business” is not a purpose).

From home

The first and last drive of the day

Home to your shop or office, and back, is commuting “no matter how far your home is from your regular place of work,” and parking there is a commuting cost. Every drive from the shop for the business counts. Two things can make a drive from home count as well: a home office that qualifies, or, when you have a shop or office you work at regularly, a place where the work is temporary. With neither a shop nor a home office that qualifies, the drive from home to the first stop of the day, and the one home from the last, are commuting, unless that stop is a temporary one outside your metro area.

The first and last drive of the day for an owner with a shop, as two routes from home to the shop, a supplier, a customer, back to the shop and home. If you work at your shop or office regularly, home to the shop, and back, is commuting, however far, and every drive from the shop for the business counts: the shop to the supplier, on to the customer and back to the shop. With a home office that is your principal place of business, every leg is business: home to the shop counts too, because it is another work location of the same business. Home straight to a temporary work location counts too: with a regular workplace, home to a place where the work lasts a year or less, and back, counts at any distance.

Publication 463: “If you have one or more regular work locations away from your home and you commute to a temporary work location in the same trade or business, you can deduct the expenses of the daily round-trip transportation between your home and the temporary location, regardless of distance.” A work location is temporary when the work there is realistically expected to last a year or less, and does, such as a customer's place for one job. With a home office that is your principal place of business, home to the shop counts too, which is the next section. This is general information from IRS Publications 463 and 587, not tax advice (three cases, side by side).

Your desk at home

A home office, when you also have a shop

Doing the books at home can make the drive from home to the shop business, but only if that space is your principal place of business. Publication 587, the IRS's guide to business use of your home, gives the test: you use a specific area “exclusively and regularly for administrative or management activities” of the business, and have “no other fixed location where you conduct substantial administrative or management activities.” A shop where you serve customers, make things or keep stock doesn't count against it; a back office at the shop where you do the ordering and the books does.

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.

Publication 587 says a home office still qualifies when “You conduct substantial nonadministrative or nonmanagement business activities at a fixed location outside your home,” and when you “have suitable space to conduct administrative or management activities outside your home, but choose to use your home office for those activities instead.” The space has to be used only for the business, so a desk the family also uses fails. The office's own costs are a separate deduction, on Schedule C, line 30; whether yours qualifies is for you and your tax preparer (the test in full).

The deduction

A year of driving, on Schedule C

A shop owner in 2026: 2,300 business miles through June 30 at 72.5¢ and 2,500 from July 1 at 76¢, plus $212 of parking and tolls, come to $3,779.50 on Schedule C, line 9, car and truck expenses. The 3,100 miles between home and the shop aren't in it: they are commuting, and go on line 44b. It is a deduction, not money back.

A shop owner's 13,300 miles in 2026, from odometer readings of 52,300 on January 1 and 65,600 on December 31, as one bar in proportion: line 44a, business, 4,800 miles, 36%; line 44b, commuting, 3,100 miles; line 44c, other, 5,400 miles. Line 9: 2,300 miles by June 30 times 72.5¢ is $1,667.50, plus 2,500 miles from July 1 times 76¢ is $1,900.00, plus $212.00 of business parking and tolls, makes $3,779.50 of car and truck expenses. Not in the $3,779.50: the 3,100 commuting miles between home and the shop, every working day, which go on line 44b only; and loan interest and personal property tax, 36% of each, which go on lines of their own.

For this owner, line 9 takes $3,779.50 × 92.35% × 15.3% = $534.03 off self-employment tax, and income tax comes down too. What it is worth to you 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.

Rent, stock, tools and what you pay people 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 each vehicle, 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 customer or the errand, is yours to add.

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 business owners often hear about tax and driving, and what the rules say.

Often heardThe rule

The drive to my shop 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 that drive business.

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

The business name is on the van, so all its miles are business.

Advertising on the vehicle “doesn't change the use of your car from personal use to business use.” A lettered van on the way to the grocery store is on a personal drive.

IRS Publication 463: Advertising display on car (opens in a new tab)

My tools and stock are always in the car, so every drive is business.

Publication 463: “Hauling tools or instruments in your car while commuting to and from work doesn't make your car expenses deductible.” A drive is business because of where you're going and why, and the log has to say why.

IRS Publication 463: Hauling tools or instruments (opens in a new tab)

With an LLC, the business can deduct all of the car.

A one-owner LLC that hasn't chosen to be taxed as a corporation files Schedule C like any sole proprietor, under the same rules: business miles at the standard rate, or the business share of the vehicle's actual costs. It doesn't turn personal or commuting miles into business ones.

IRS: Single member limited liability companies (opens in a new tab)

I can deduct my car payment 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. Of a car payment, only the business share of the loan interest goes on top.

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

My employees can write off the miles I don't pay back.

Not on a 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. What works is paying the miles back under an accountable plan, against a log.

IRS Notice 2026-10 (opens in a new tab)

With five vans on the road I can still use the mileage rate.

Publication 463 says you can't use the standard mileage rate if you “Use five or more cars at the same time (such as in fleet operations).” Then the deduction is the business share of each vehicle's actual costs, and each one still needs its own mileage log.

IRS Publication 463: Standard mileage rate not allowed (opens in a new tab)

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

“You can't deduct amounts that you approximate or estimate.” An invoice or 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 the business.

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.

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 Bank deposit or Supplier run, or one OdoTax starts you with, such as Errand / supplies or Customer visit.

Home and the shop

Save your home and the shop as Home and Work, and drives between them are offered as Commute, kept out of the deduction but counted for Schedule C. Drives from the shop to a supplier or a customer are offered as business.

The supplier run, sorted as it arrives

Save a route you drive every week, such as the shop to the same wholesaler, 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.

The van and the car apart

Each vehicle keeps its own log and odometer readings. On Android, link each vehicle's Bluetooth. On an iPhone, pick its CarPlay or Bluetooth stereo, and a drive that starts while the phone plays through it goes on that vehicle. Any other drive goes on your default vehicle, and you can change it under Vehicle on the drive.

A report for Schedule C

Every drive priced at its own date's IRS rate, with the parking and tolls you type in on each drive (keep the receipts yourself), as a PDF to keep with your return or send to your accountant, and a CSV, from the app or the website.

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 shop owner's car in tax year 2026. The report's first page, Deduction by form, has a row named Schedule C, line 9: $3,779.50, from 4,800 business miles at each drive's rate plus $212.00 of parking and tolls; it goes on line 9, car and truck expenses, $3,779.50. 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, 4,800, 3,100 and 5,400, counted from the drives OdoTax recorded, with the odometer at 52,300 at the start and 65,600 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 you own it alone and report it on Schedule C: your business miles go on 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 vehicle's running costs, such as gas, repairs and insurance, plus business parking and tolls. 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 vehicle you own only if you used the rate for its first year in your business. You don't need an LLC for it. The total lowers the profit you're taxed on; it isn't money back (Schedule C, line by line).

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.

Pay their business miles back under an accountable plan: they show you the miles and return anything paid over, and the payment isn't income to them. An employee can't deduct driving the employer doesn't pay back on a federal return, and the 2025 tax law made that permanent, apart from a few named groups (IRS Notice 2026-10). In OdoTax each employee keeps a log in an account of their own, and a report made with your rate per mile prints as a mileage reimbursement claim. Set the plan itself up with your accountant (who can use the business rate).

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

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.

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 the business 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).

Which drives count

The drives you make for the business: from the shop to a supplier or a wholesaler, deliveries and pickups for customers, visits to a customer's place, and the drives from one of those stops to the next. Publication 463 counts “Getting from one workplace to another in the course of your business or profession” and “Visiting clients or customers,” 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 your shop or office is commuting unless your home office qualifies. Name the customer or the errand in each drive's purpose (“business” is not a purpose).

Yes, if the shop is your regular place of work and your home office doesn't qualify: home to the shop 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. The shop helps with everything else: drives from it to a supplier or a customer count, and so does home straight to a temporary work location, such as a customer's place for one job, and back. The owner in this page's example drove 3,100 miles between home and the shop in 2026; they stayed out of the $3,779.50 on line 9 and went on line 44b. If you do the ordering and the books at home in a space used only for the business, and not at the shop, the home office can be your principal place of business, and then home to the shop counts too (three cases, side by side).

It can, if your home is the business's principal place of business. Publication 587's test: you use a specific area “exclusively and regularly for administrative or management activities” of the business, such as billing, 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 shop where you serve customers or keep stock doesn't count against it, but an office at the shop where you do that paperwork does. When your home qualifies, the shop is another work location of the same business, and home to it counts. Whether yours does is for you and your tax preparer; this is general information from Publication 587, not tax advice (the home office test).

The drive from the supplier on to the shop does: it is between two business stops. The first leg, from home to the supplier, is the harder one. Publication 463 lets you count the drive from home to a temporary work location when you have a regular workplace, and to any work location of the business when your home office qualifies, but it doesn't say whether a quick stop at a supplier is a work location. Log the drive as it was, with a purpose that names the stop, and ask your tax preparer how to treat that first leg.

A supply run does on Publication 463's own words: its example of business use is a car used to “meet with suppliers and other subcontractors, and pick up and deliver items to clients.” The bank and the post office aren't named, so those runs rest on the general test that a business cost is ordinary and necessary in your line of work, with a purpose you can write down, such as “Bank deposit, Saturday takings” or “Posted orders.” From the shop, the round trip is between business stops; a stop for yourself at the same place, such as your own banking, isn't business. For anything you're unsure of, ask your tax preparer.

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 stop 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).

No. Publication 463: “Hauling tools or instruments in your car while commuting to and from work doesn't make your car expenses deductible”; only an extra cost of hauling them, such as renting a trailer, is. Advertising on the car “doesn't change the use of your car from personal use to business use,” and taking client calls on the way doesn't either. A drive is business because of where you're going and why, and the log has to say why (tools in the back).

Your own car's business miles count wherever the work is, priced on line 9 like any other drive, and a day trip to a customer or a supplier outside your metro area counts from your driveway and back, even with no shop 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 business 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. A trip 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 shop owner in this page's example drove 2,300 business miles before July 1 and 2,500 after, which come to 2,300 × $0.725 + 2,500 × $0.76 = $3,567.50, and with $212 of business parking and tolls, $3,779.50 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 shop owner in this page's example, with $3,779.50 on line 9, that's $3,779.50 × 92.35% × 15.3% = $534.03 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).

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 the business earns. 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 the business is seasonal, 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 vehicles

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 the 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 your own shop 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 van or truck bought for the business 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).

Each needs its own figures: Publication 463's Table 5-1 asks, for each car, for “the cost of the car and any improvements, the date you started using it for business, the mileage for each business use, and the total miles for the year,” and the Schedule C instructions say “If you used more than one vehicle during the year, attach a statement with the information requested in Schedule C, Part IV, for each additional vehicle.” In OdoTax each vehicle keeps its own log and odometer readings: on Android, link each vehicle's Bluetooth; on an iPhone, pick its CarPlay or Bluetooth stereo, and a drive that starts while the phone plays through it goes on that vehicle. Any other drive goes on your default vehicle, and you can change it under Vehicle on the drive (two vehicles, two logs).

Not while five or more are in use at the same time: Publication 463 says you can't use the standard mileage rate if you “Use five or more cars at the same time (such as in fleet operations).” Then the deduction is the business share of each vehicle's actual costs, and each one still needs its own mileage log. Vehicles used at different times aren't in use at the same time: in Publication 463's examples, a salesperson who takes turns with three cars and two vans can use the rate for all five, and a landscaping business with four pickups in use, two of them traded in for newer ones during the year, can use it for all six. OdoTax is built for one driver and their vehicles, with no team plan yet, and its report prices drives at the standard rate, so with five or more in use at once, give your tax preparer the miles, not the report's line 9 total.

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 vehicle works for the business, choose the rate on your 2026 return; if it has worked for the business 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 business owner the purpose says what the run was for, such as “Supplies — Eastside Wholesale” or “Delivery to Reyes Bakery”; “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: supplier invoices, delivery notes, bank deposit slips, your calendar or your phone's location history; an invoice 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 season isn't typical of a slow 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 pocket. 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: “Bank deposit”, “Supplies — Eastside Wholesale”, “Delivery”, “Estimate — Patel”. 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 customer 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 delivery between two customers comes up as personal, while one from or to the shop, saved as Work, is still suggested as business. 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 hours, 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 shop 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 the shop to a supplier or a customer are offered as business. A drive from home straight to a customer or a supplier 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 shop as an ordinary place, so drives from home to it aren't offered as Commute (the commute).

No: an account is one person's log, and there's no team plan yet. A phone signed in to yours adds every drive it's on, personal ones too, to your log and to your free count. Each driver needs an OdoTax account of their own and sends reports from it. An employee who drives their own car can make the report with your rate per mile, and it prints as a mileage reimbursement claim. For one who drives the business's van there's nothing to pay back: the van's business miles are the business's deduction, theirs included, so give their report to your tax preparer with yours.

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: a bank run and back is two drives, a 20-minute stop at a supplier splits a trip in two, and the commute to the shop is two drives a workday on its own, 40 or more a month on a five-day week before a single business drive. 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, 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 customers 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, customer 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
Working for yourself, in a business you own, rather than as someone's employee; nobody takes tax out of what the business earns, and self-employment tax is figured on its profit.
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 business: from the shop to a supplier, on a delivery, to a customer's place, or from one of those stops to the next.
Commuting
Driving between home and your regular place of work, such as your shop or office; never deductible, however far. With a home office that qualifies, home to the shop isn't commuting. OdoTax keeps commuting drives under Commute, out of the deduction but counted for Part IV.
Regular place of work
Your shop, office 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 customer's place for one job.
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 (ordering, billing, the books) and at no other fixed place. A shop where you serve customers or keep stock doesn't count against it.
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 the business, naming the customer or the errand.
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 vehicle started being used in the business (Schedule C, line 43); for a family car, the day the 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 closing or once a week.

Read first: car expenses on Schedule C, and when the first drive of the day counts.