Trips to visit clients, make deliveries, attend meetings, airport transfers for work, and travel between different work areas during your day.
The Two IRS Paths
How do IRS mileage deductions work for 1099 workers?
If you are a 1099 worker and use your car for business, the IRS allows you to deduct your vehicle expenses in two ways: using the standard mileage rate or the actual expenses method. The key is choosing the path that puts the most money back in your pocket. The Millage app uses the standard mileage rate, ensuring that every single business mile and travel expense counts.
Standard mileage rate
Track business miles and multiply them by the IRS rate for the tax year.
Actual vehicle expenses
Report the business-use portion of fuel, repairs, insurance, depreciation, and other vehicle costs.
Standard mileage rate
Miles that DO qualify
Miles that do NOT qualify
The official IRS rate
How does the standard mileage rate work?
It is the most commonly used method because of its simplicity: you only need to record your business trips, and the IRS turns them into deductions. To apply it correctly, you should know these three basic rules:
Your daily trip between home and your main work location, stops for personal errands, or any trip without a clear business purpose.
The IRS sets a cents-per-mile value. At the end of the year, Millage automatically multiplies your accumulated miles by the current official rate for your report.
The Official IRS Rate
The IRS sets a specific cents-per-mile rate depending on the category. Millage automatically calculates your deductions using the current official rates:
Business
$0.67 / mile
Medical
$0.16 / mile
Charity
$0.14 / mile
At the end of the year, the app multiplies your tracked miles by their respective rate to generate your tax-ready report.
Tolls
100% DeductibleHighway, bridge, and express lane fees paid during your business, medical, or charity trips.
Parking
100% DeductibleFees for parking lots, garages, and meters at your destination (client offices, hospitals, clinics, or volunteer sites).
Trip examples
Trips Millage can help you organize
Use these examples to separate business, medical, and charity trips with clearer records.
Don’t see your specific job here? No worries
These are just some of the most common examples, but Millage works for any deductible trip. If your business keeps you on the move, our app tracks it all.
Example
From Miles Driven to Money Saved
Take the example of a rideshare driver, delivery worker, trucker, or independent contractor earning $70,000 a year. Without an accurate log, they would owe taxes on every single dollar of that gross income. But by automatically tracking 30,000 business miles with Millage, the scenario changes completely. Using the official rate of $0.67 per mile, they unlock a $20,100 mileage deduction. When you add $2,500 in business tolls and parking, their total estimated deduction climbs to $22,600. This slashes their taxable income down to just $47,400, protecting their hard-earned money before even factoring in other business expenses.
Gross 1099 income$70,000
Business miles30,000
IRS Standard Rate$0.67
Mileage deduction$20,100
Tolls & Parking$2,500
Total estimated deduction$22,600
Taxable Income$47,400
Try it
How much money will you save this year?
Stop guessing your taxes. Use our interactive calculator to see the real impact your business miles have on your tax return.
Step 1: Enter an estimate of the miles you drive for work.
Step 2: Add your approximate gross income.
Step 3: Watch your taxable income drop in the yellow box.
How to read your results:
Check out "Deducción total estimada": Your miles and tolls turned into a giant tax shield to subtract from your total income.
Keep an eye on "Impacto fiscal estimado": The actual cold, hard cash Millage saves you from taxes and keeps in your pocket.
Focus on "Ganancia sujeta a impuestos" (yellow box): The only amount the IRS can actually tax now. The rest is completely yours!
Try it out with your own numbers on the right!
Deduction calculator
Estimate your mileage deduction
Total estimated deduction
$22,600
Estimated tax impact
$4,972
Taxable Income
$47,400
This estimates a deduction, not a refund. A deduction reduces taxable business profit; tax savings depend on your final tax situation.
Final step
Download the App
Every untracked mile is money left on the table
Stop leaving your hard-earned cash on the road. Every time you drive without Millage, you miss out on massive tax write-offs that are rightfully yours.
Join thousands of 1099 independent contractors who automate their mileage tracking, eliminate tax stress, and get IRS-ready reports instantly.
Download the App
Setup in minutes - No contracts