7 Mileage Tracking Mistakes That Could Cost You Thousands

Most gig workers know that tracking mileage is important — but a surprising number still fall into bad habits that cost them serious money at tax time. These mistakes don’t always come from laziness; often, they’re rooted in common misconceptions that sound reasonable on the surface.

In reality, these misconceptions can lead to missed deductions, higher taxes, and unnecessary stress when tax season rolls around. The good news is that they’re easy to fix once you know what to look out for.

Let’s clear the air and break down the most common mileage tracking misconceptions — and how using a tool like MileIQ can help you avoid them altogether.

So in this video, We are talking about:

• The Common Misconceptions about Mileage Tracking 

• How it ACTUALLY is for Gig Workers

• Everything in between!

Disclaimer: The content of this video does not contain and is never intended to be legal, business, financial, tax, or health advice of any kind, This video is for entertainment purposes only. It is advised that you conduct your own research and consult with qualified professionals before applying anything you find online. 

I also want to be clear that everything we are going to go over is very market dependent, and what applies to me and my market may not apply to you.

“I’ll Just Estimate My Miles Later”

This is one of the most common (and costly) mistakes gig workers make. On the surface, it sounds harmless: just total up your miles at the end of the week, month, or year. But the IRS expects contemporaneous records — meaning you’re supposed to log your mileage as you go, not guess after the fact.

When you rely on memory, the numbers are almost always off. A “close enough” guess in January might be hundreds or thousands of dollars short by December. And if the IRS audits you, estimates don’t count as proof.

Not to mention, handing a pile of sloppy estimates to a tax professional is a quick way to earn “the look” — and if you wanted a man to be disappointed in your life choices, you could just call your dad.

MileIQ solves this problem by tracking every drive automatically, in real time. No mental math, no scrambling to remember last Tuesday’s lunch shift. It just works in the background so you can stay focused on driving.

“The App I Use for Deliveries Is Enough”

Many drivers assume that apps like DoorDash, Uber Eats, or Instacart track all their deductible miles. Unfortunately, that’s not the case. Most gig platforms only track active delivery miles — the distance between pickup and drop-off.

But what about:

• The drive to your first hotspot?

• Deadheading between orders?

• Driving home after your last drop?

Those miles count as business mileage, and skipping them means leaving money on the table.

Delivery apps also don’t produce IRS-compliant mileage logs. Their built-in tracking isn’t designed for audits — it’s designed for operations.

MileIQ fills that gap by tracking all your drives, not just the ones tied to active orders. Every eligible mile gets logged, whether you’re switching apps or heading to a new zone.

“Manual Logs Are Fine — I’ll Write It Down”

Technically, this one isn’t wrong. You can use a notebook or spreadsheet. But it requires a level of discipline most drivers don’t realistically maintain.

• What happens when the notebook gets soaked during a rainy delivery?

• Or when you forget to jot down your mileage after a busy night — not because you’re lazy, but because you’re wiped out from all the running around you just did.

• Or when a week goes by and you can’t remember exact routes. Now that you’ve been busy all week and exhausted every night, it’s way too easy to fall behind — and once you do, catching up becomes a guessing game.

• “Oh, but it’s always in my car.” Sure — until you toss a drink or a leaky takeout bag in the backseat and your mileage book turns into papier-mâché.

Manual logging isn’t just inconvenient — it’s risky. One lost or ruined notebook can erase your entire year’s deductions. And the time you spend writing everything down is time you’re not earning.

MileIQ automates this in the background. No pens, no spreadsheets, no lost data — just clean, accurate records you can access any time, with simple swipes you can do even when you’re exhausted.

“The Drive From Home Doesn’t Count — Period”

This is one of those half-truths that gets repeated a lot in driver communities. Most people will tell you that the drive from your home to your first delivery zone, and the drive back home after your last order, is considered commuting — and they’re right. Commuting miles are generally not deductible.

But here’s what many don’t realize: if you have a properly established home office that qualifies as your principal place of business, your home becomes your starting point for business travel. That changes the tax treatment of those miles entirely.

If you use a portion of your home exclusively and regularly for administrative work — like scheduling, dispatching, bookkeeping, mileage classification, or in my case, content creation for those of you who actually listen when I say build an exit strategy — then your first and last trips of the day can become deductible business miles rather than commuting.

For example:

• Driving from your home office to your first hotspot can count as business travel.

• Driving home after your last drop-off can also count, because you’re returning to your principal place of business.

This is a big deal for gig workers who treat their business seriously. It’s not about claiming your couch — the space must meet IRS home office criteria — but if you qualify, it’s an easy way to maximize deductions you might otherwise miss.

“I Don’t Need to Track Personal Trips”

Some drivers think they only need to track business miles, not personal ones. But here’s the catch: the IRS expects you to distinguish between business and personal mileage.

If you don’t track personal trips, you can’t accurately show what percentage of your total driving was for work. This can cause problems during audits and may lead to deductions being denied.

I’ve even had this happen firsthand. One year, I showed my tax professional the total miles tracked in my MileIQ app — both business and personal — and he initially thought I was trying to claim every single mile as a write-off. He wasn’t being judgmental, but I could see the gears turning as he asked, “Are you sure all of these miles are 100% business?” It was a misunderstanding — I was showing total mileage, not claiming it all — but that’s exactly the point. If you don’t make the distinction clear, even your tax professional might raise an eyebrow.

The simplest solution is to track everything and classify trips as personal or business. With MileIQ, this is literally just a swipe. It gives you clear, defensible records without extra effort.

“Write-Offs Make It Free”

Ah yes — the classic line: “It’s a write-off!”

This phrase gets thrown around so casually, but the reality is that a lot of people who say it don’t actually understand how the tax code works. And worse, they end up putting themselves — and anyone foolish enough to take their advice — at risk of an audit.

A write-off is not a reimbursement. It doesn’t make the expense free; it reduces your taxable income, not your actual out-of-pocket cost.

For example, if you spend $1,000 on gas and your effective tax rate is 20%, your deduction saves you $200. But you still spent $800.

Treating write-offs like “free money” leads to overspending and sloppy tracking. Smart drivers treat deductions as strategic tools, not permission slips to waste money.

And above all, make sure you discuss these things with a qualified tax professional before applying bad advice from some internet mouthpiece (me) or from someone clinging to outdated information. The rules change, and getting it wrong can cost you a lot more than you save.

That said, you want to make sure you are working with a tax professional that isn’t going to cost you an arm and a leg to work with, and that is where GigTax is here to help. 

Whether you’re a rideshare driver, do food delivery, or any other self employed work, your time is too valuable to waste on tax prep. So while you keep hustling, GigTax can help you save big! 

GigTax was founded by Joseph Mayo, a seasoned Gig Worker with over 7000 deliveries across 7 platforms since 2020, and they understand the challenges of freelancers, rideshare drivers, couriers, online sellers and gig workers of all kinds! 

Their #1 Online Tax Preparation service is designed to maximize your tax savings and save you time, energy and money!

Enjoy exclusive discounts on tax prep services as well as a range of additional benefits such as:

• Electronic Filing

• State Filing

• Year-Round Direct Access to Tax Pros and Financial Partners

• Client App and Portal

• Audit Support

All Absolutely Free and Incredibly Valued Benefits when filing with GigTax!

If you are ready to keep more of what you earn, check out drivenwyld.com/gigtax to book your strategy session and learn more about how GigTax can help you simplify and save on your taxes today!

“All Mileage Apps Are Basically the Same”

They’re not.

Some apps (like Stride) require you to manually start and stop tracking, which means forgetting once can cost you hundreds in deductions. Others (like Everlance) try to be an all-in-one bookkeeping solution, but their heavy background processing can drain your phone and complicate your reports.

MileIQ stands out because it focuses only on mileage. It runs quietly in the background, doesn’t eat battery life, and generates clean, audit-ready reports that tax professionals actually like.

And here’s a bonus tip: if you sign up through MileIQ’s website instead of through app stores, you may avoid extra platform fees and save money on your subscription. (Yes, I learned that the hard way during a financial audit.)

Final Thoughts

Mileage tracking isn’t just a tax requirement — it’s a financial strategy. Believing these misconceptions can lead to missed deductions, higher tax bills, and extra headaches down the line.

By using a purpose-built tool like MileIQ, you take the guesswork out of tracking. Every mile gets logged, every trip is classified, and your reports are ready when tax season arrives.

And when you pair that with a knowledgeable tax professional, like the team at GigTax, you’re setting yourself up to keep more of what you earn — without the stress.

👉 Sign up for MileIQ here to start automating your mileage tracking today.

👉 Check out GigTax here for tax support built for gig workers.

If you would like to add some other perspective to these mistakes and misconceptions about mileage tracking, feel free to email me: drivenwyld@gmail.com and who knows? Maybe your email or perspective and be featured in a post as well!