If you drive your personal vehicle for business purposes—such as meeting clients, traveling to conferences, or running operations errands—you may be eligible to claim a mileage deduction on your federal tax return. Below is a clear breakdown of how the deduction works and what you need to do to claim it correctly.

How the Deduction Works

For the 2025 tax year, the IRS standard mileage rate for business use is 70 cents per mile.

For example, if you drove 1,500 business miles in 2025, you could deduct $1,050 (1,500 × $0.70) as a business expense.

This rate is optional—you can instead use actual vehicle-related expenses (gas, maintenance, insurance, depreciation) if that approach yields a higher deduction.

What You Need to Do

To support your deduction (and in case of an IRS audit), follow these steps:

1. Track Each Business Trip

Use a mileage-tracking app or logbook to record every business trip: date, starting point, destination, purpose, and miles driven. Such detailed records are key for substantiation.

2. Record Your Total Mileage Annually

Set a reminder to note your odometer reading on January 1st each year. This gives you the total miles you drove (business + personal), which helps your CPA allocate the proper percentage for business use.

Why This Matters

Having accurate and consistent documentation helps you:

• Maximize your deduction by supporting the business miles claimed
• Minimize audit risk by having substantiation
• Choose the most advantageous method (standard rate vs. actual expense) in later years