Uber Driver Mileage Deduction: Using Your App for Tax Records

As an Uber driver, accurately tracking your mileage is crucial for both your business and tax purposes. If you are using a dedicated application to log your trips, you might wonder if it can serve as the primary proof for your mileage deduction. This article will guide you through the process of using your Uber application as proof for your mileage deduction and discuss best practices for record-keeping.

Can Uber Application be Used for Mileage Deduction?

The good news for Uber drivers is that yes, your application which tracks your trips, including the beginning and end locations and total mileage, can be used as proof for your mileage deduction. The IRS requires detailed records of your trips, including the date, destination, purpose of each trip, and total mileage. While the Uber app can be very helpful, it's advisable to supplement it with a manual log if possible.

IRS Requirements for Mileage Deduction

To secure the most accurate record-keeping for your tax purposes, the IRS has specific requirements:

Record Keeping: Keep detailed records of your trips. This includes the date, destination, purpose of each trip, and total mileage. The Uber app can help with this, but it’s recommended to keep a manual log as well. Business Use: Only mileage incurred while driving for Uber (from picking up passengers to dropping them off) can be deducted. Personal trips should not be included. Mileage Calculation: You can choose between the standard mileage rate or the actual expenses method. For the standard mileage rate, multiply the business miles driven by the IRS mileage rate for the year.

Documentation and Backup

While the app data can serve as a record, it is good practice to keep additional documentation such as receipts for expenses related to your driving, such as gas and maintenance. Encourage your clients to maintain a backup of their trip records in case the IRS requests more information.

Using an Accurate App for Mileage Tracking

If you are looking for an accurate app to track your mileage, consider using MileageWise. This app is specifically designed for drivers and can log all necessary details, including stops and starts, with a map. You can even name locations if you visit them regularly. The app makes it easy to differentiate between business and personal trips and even provides a breakdown of your total mileage on Excel. With an annual fee of only $25, it is a cost-effective solution for your needs.

Alternatively, MileIQ is another excellent option. I use this app, and it cost just $25 a year. It runs in the background, tracking all the stops and giving a map of both. You can name locations and even indicate whether a trip is for business or personal use. At any time, you can view a complete breakdown of your mileage on Excel, making it easy to report for tax purposes. It’s a lifesaver for accurate mileage tracking and well worth the cost.

In conclusion, using your Uber application for mileage deduction is a viable and helpful strategy, provided it meets the necessary record-keeping requirements. Consider supplementing the app with other documentation and utilizing an accurate mileage tracking app to ensure you are fully compliant with IRS rules and regulations.