There is a term in business known as “sticky money.” It refers to how much of the money you earn sticks to you as opposed to having to pay it out in expenses and taxes. Some expenses you can control, but as a gig driver, taxes can decimate your earnings. Gig drivers are self-employed. In addition to the taxes on your earnings, there is a self-employment tax. Making matters more complicated, the gig companies don’t deduct these taxes for you. As a gig driver, you must discipline yourself to make those quarterly tax payments.

As a gig driver and a businessperson, one of the first questions you ask yourself, or another gig driver is, “How do I track my business mileage?”

This is easy if you have the wisdom and foresight to use the best business mileage tracking app—-Gridwise. 

App-based gig work has become common 

Before getting into the need for the best mileage tracking app for business, let’s address our use of the term “business.” An unbelievable number came out of the Pew Research Center back in 2021. Over 16% of US adults have earned money working on gig platforms. That number has likely increased since then, considering that the number came during the pandemic. In light of the Great Resignation, tens of thousands have flocked to gig driving. More are using gig driving to fill gaps in their budget or to fund the “revenge travel” we hear so much about. Their number one reason is the flexibility. Uber alone increased their number of drivers globally by 31% in 2022, according to a report by Business Insider. 

For all these drivers, gig driving is a business. That’s why it’s necessary to treat it like one, including using Gridwise, the best business mileage tracking app. 

The Gridwise business mileage tracking app also works for gigpreneurs, businesspeople who have discovered that they can also earn money on gig apps that don’t involve gig driving. Many gig drivers also work with these apps. They find it breaks the monotony and gives them options in the event of an unfair deactivation or some other issue with their gig driving (see the Gridwise blog post Sudden account deactivations on delivery platforms: What can you do?). These include apps such as Rover (pet care), Taskrabbit (handyman services), and others. 

Business mileage tracking apps: What’s all the fuss?

This past December, the IRS released an updated standard mileage deduction for miles incurred for business driving, with a1.5 cent increase, to 67 cents a mile. Full-time gig drivers can easily put 1,000 miles on their car weekly and 50,000 miles a year. At 67 cents a mile, you can deduct $33,500 miles from your taxable income. This kind of deduction makes a considerable difference for the tax bracket you fall into. 

At the beginning of each year, gig drivers receive a report of their earnings for tax purposes. That report also includes the miles you covered as you earned that money. Most people don’t know that the gig platforms only track your mileage from the time you have received a ride request or food order, through the time you pick up the passenger or food, until you complete the ride or deliver the order. The gig platform apps do not record the time between rides or orders; they don’t track the miles you incur before your first order or ride request; and they don’t log the miles you cover when you go home at the end of your shift. 

All those miles not counted by the gig app platforms are tax deductible. The Gridwise mileage tracker records all those miles. In many cases, that can add tens of thousands of business miles you can deduct. 

Must-have features in an app for tracking business mileage

The question among drivers is, “What is the best app to track mileage for taxes?” The answer—Gridwise. It’s the only business mileage tracking app designed for gig drivers by gig drivers. And since Gridwise understands that you’re in business for yourself, the Gridwise app was developed to be the best app for tracking mileage for business gigpreneurs. Consider the features of the Gridwise app. 

The Gridwise mileage app is the best mileage tracking app for businesses. Download it today!

FAQs–taxes and business mileage 

Am I better going with the standard mileage deduction or actual automobile expenses?

The IRS permits two ways of claiming mileage and automobile-related costs: actual expenses or the standard mileage rate. Both methods account for mileage and other auto expenses such as oil changes, tires, and repairs.  

The standard mileage rate is easier. You determine the total miles you drive as part of your gig-driving job and write it off at 67 cents per mile (65.5 cents before January 1, 2024). In almost all cases, gig drivers and other business owners realize more significant savings using the standard mileage rate.

With method number two, deducting expenses only, you save all your receipts for fuel, repairs, and maintenance, and at the end of the year, you add them up. Businesspeople who use this deduction method typically do so in situations where they have less mileage, but drive an expensive car with significant maintenance costs. 

Here’s another little jewel: the IRS allows you to compute your mileage at 67 cents per mile even if you drive an electric car. 

What about claiming my fuel costs?

Your standard mileage rate includes fuel expenses. Claiming the standard mileage rate while at the same time claiming your gas expenses is a quick way to get audited. 

What are the chances of a gig driver getting audited?

Estimates are that between 0.3% and 1% of all returns get audited. Remember, though, you’re a self-employed businessperson, which increases your audit prospects. In addition, the gig industry is the newest area for IRS auditors to explore. It’s a bright, shiny thing for them, and they’re still trying to figure out how current IRS policies apply to the gig economy. Don’t take chances. 

What if I didn’t keep a record of my mileage?

If you spent all of 2023 driving rideshare and didn’t keep a mileage log, your best option is to go with the report you received from Lyft or Uber. The same goes for meal and grocery delivery. 

Another option is a technique the IRS calls “sampling.” After several false starts at keeping a mileage log, let’s say you start using the Gridwise mileage tracker on October 1. For the year’s final quarter, you must keep diligent mileage records. You can then extrapolate that report for the entire year. There is a good chance the IRS will accept that in an audit. Review Publication 463 (2021), Travel, Gift, and Car Expenses, for a full explanation of sampling. Look under Section 5, Recordkeeping. 

Does the IRS require odometer readings as part of a mileage report?

Nothing in IRS policies says your records should include odometer readings. 

The IRS instructs examiners to verify total miles for the year by requiring repair receipts or other records showing mileage at the beginning and end of the year. Take a photo of the odometer on the first and last day of the year and upload it to the Gridwise mileage tracker. That’s solid proof. 

Can you round out your mileage numbers?

Stay away from rounded-off numbers. The IRS finds them a sign of less-than-stellar record keeping. Gridwise provides an accurate mileage reading. The more precise you can be in your information, the better you look in an audit.

The Gridwise mileage app is the best mileage tracking app for businesses. Download it today!

Gridwise provides the best business tools for gig drivers.

If you’re looking for an app for tracking business mileage, look no further than Gridwise. Veteran gig drivers developed the Gridwise mileage tracker specifically for other gig workers. They realized that gig driving was more than a way to make extra money. For many, it’s a business, not just a side hustle.  

Check out these Gridwise pages to learn more about the Gridwise mileage tracker:

• Download the Gridwise app for free (includes the Gridwise mileage tracker) 
• Download the Gridwise Annual Gig Mobility Report
• The best mileage tracking app for DoorDash
• The best business mileage tracking app
• The best mileage tracking app for delivery drivers