How to Classify Drives in MileIQ for Taxes and Business - EVERYTHING You MUST Know!!

When you’re juggling deliveries, client meetings, or just trying to keep your records straight, it’s easy to lose track of which drives count as business and which don’t. 

That’s where MileIQ makes life easier. The app automatically tracks your drives and lets you classify them with just a swipe, so you can hand clean reports to your CPA or tax professional at the end of the year.

So in this article, We are talking about:

• How to classify drives in MileIQ

• Some best practices to save time (and stress)

• Everything in between!

Disclaimer: The content of this article does not contain and is never intended to be legal, business, financial, tax, or health advice of any kind, This article 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.

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Also if you guys haven’t downloaded the #1 Mileage Tracking app in the App store and Google Play, check the link in the description to download MileIQ and get started.

Understanding MileIQ’s Built-In Classifications

MileIQ comes with five main classification types that align with IRS rules:

Business – These are deductible trips you take for work (client visits, deliveries, business errands).

Personal – Non-deductible trips, like going to the grocery store or picking up a friend.

Medical – Deductible at the IRS medical mileage rate (often used for doctor visits).

Charity – Deductible at the IRS charity rate (for example, volunteering at an event).

Commute – Trips between your home and your regular workplace. Important note: commuting miles are not deductible.

These categories alone cover everything the IRS cares about when it comes to mileage and each has their own rates in terms of being able to write off your miles.

How to Classify Drives in MileIQ

Swipe Left for Personal, Swipe Right for Business

The beauty of MileIQ is its simplicity. Once your trips are logged, you can classify them quickly:

1. Open the app and go to your drive list.

2. Swipe right to classify a trip as Business.

3. Swipe left to classify it as Personal.

4. Tap on a drive to add notes (e.g., “Client meeting at Starbucks” or “Delivery”).

You can also use the bulk edit feature if you need to classify multiple drives at once and the app will even take notice when you take a drive enough times to classify it automatically for you. 

That’s it! The more consistently you classify, the easier it is to export a clean report later the more automated the process becomes. 

Best Practices for Classifying Drives

Do it regularly: Don’t wait until the end of the year. Classify daily or weekly so you don’t forget trip details. For gig workers this can be during your wait-times between or during deliveries, or after getting back from a hard day's work.

Add notes: The IRS loves details, and your CPA will too. A quick note on “who/what/why” can save you trouble in an audit. If there is only one reason you would need to classify your drives you can give them a category as well, such as “courier” or “delivery”.

Be consistent: If you always classify deliveries as Business, do it the same way every time. Figure out a system and stick with it, if you have multiple reasons why you would drive for work, make sure to make notes on it.

Watch your commutes: Remember, home-to-work trips don’t count as business miles and vice-versa. There is a work around with that being if you have a home office but make sure you have that conversation with a tax professional so you can classify that properly.

Also, if you are on the free plan with MileIQ you can only classify the first 40 drives a month and if you are a gig worker you will be blowing through that in a week tops. 

So if you want to keep your mileage tracking consistent and effective for tax purposes, make sure to upgrade your account to get started on saving on your mileage tracking today. 

Categories vs. Classifications: What’s the Difference?

This is where people sometimes get confused.

Classification = The IRS-approved bucket your trip belongs in (Business, Personal, Medical, Charity, Commute).

Categories = Extra labels you create for your own insight (like “Courier” “In-Person Sales” or “Client Meetings”).

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Here’s the catch: many CPAs prefer you stick with just the Business classification, because that’s what ultimately matters for taxes. If you create multiple business categories, your accountant may just roll them back into one line item.

That said, using categories can still help you. They let you analyze your driving — for example, which gig app makes you the most money for the miles you drive. In other words, this is just as much for you as much as it is for your tax professional. 

Why Proper Classification Helps

When you classify your trips correctly, you’re making your CPA’s or bookkeeper’s life easier. They can:

• Trust your reports without needing to re-check every trip.

• Maximize your deductions by knowing exactly what qualifies.

• Reduce audit risk with clean, consistent records.

It’s a synergistic workflow — you keep everything neat in MileIQ, and they can handle the tax side without headaches.

And classifying your drives in MileIQ is one of the simplest things you can do to stay tax-ready year-round. Stick to the five built-in classifications for IRS compliance, and if you want extra insight into your business, experiment with custom categories.

At the end of the day, the goal is simple: keep your logs accurate, keep your Tax professional happy, and keep more of your money at tax time. Also, if you are looking for a qualified tax professional that can help you at an affordable rate, that is where GigTax is here to help!

As a Gig worker or anyone who is self-employed, your time is too valuable to waste on tax prep. That said, you shouldn’t let taxes eat into your earnings or slow you down.

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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! 

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Book your free strategy session with GigTax at DrivenWyld.com/GigTax to simplify and save, whether you are a gig worker making some extra money, or becoming a successful entrepreneur leading an incredible lifestyle!

Get started with saving the money you made and making even more along the way!

If you would like to add some other perspective to classifying your drives on MileIQ, feel free to email me: drivenwyld@gmail.com and who knows? Maybe your email or perspective and be featured in a post as well!