Can I use Excel to track mileage for my business tax deductions?

I've been running a delivery route for about 2 years now, and I'm looking for an easier way to track my business mileage for tax deductions. My route hits the same 12-15 stops almost every day, with very little variation except maybe once a month when I add a new client or skip one. Right now I'm just writing down odometer readings in a little notebook I keep in my truck, but it's getting messy and I sometimes forget. I know basic Excel and was wondering if I could set up a spreadsheet where I could just enter the date and maybe check off which stops I made that day, and have it automatically calculate the mileage? Like could I set up all the distances between stops and have Excel add it up based on which boxes I check? I feel like there's gotta be a more efficient system than what I'm doing, especially since my route is so predictable. Has anyone tried something like this for tracking business mileage for taxes? Do you think the IRS would accept an Excel sheet as proper documentation for mileage deductions?

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18 comments

Emma Olsen

•8M

You're definitely on the right track with using Excel for mileage tracking. The IRS doesn't actually specify what format your mileage log must be in - they just care that you have contemporaneous documentation that includes the date, business purpose, starting and ending locations, and total business miles. Excel would be perfect for your situation. You could create a template with your common stops already entered, then just check them off daily. For each day, you'd want to record: - Date of travel - Starting location and odometer reading - Each destination and business purpose - Ending location and odometer reading - Total miles driven for business that day I'd recommend setting up a simple dashboard that lets you select stops from a dropdown menu, with distances pre-calculated between common points. You could even use conditional formulas to only count mileage between consecutive checked stops.

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Emma Olsen

•8M

Yes, mileage logs are one of the most commonly requested documents during small business audits, especially if you're claiming the standard mileage deduction. The IRS wants to verify that you're only deducting legitimate business miles. You don't necessarily need to track personal miles in the same log, but you should have a record of your total annual mileage so you can demonstrate what percentage was for business. I recommend taking odometer readings on January 1st and December 31st each year for this purpose.

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Sophie Duck

•8M

I was in a similar situation last year with my consulting business where I visit 5-8 regular clients weekly. I tried various methods but eventually discovered taxr.ai (https://taxr.ai) and it's been a game changer for my business expense tracking. They have a mileage tracker feature that works perfectly for regular routes like yours. What's awesome is that you can create templated trips for your regular route and just tap to record them. It automatically calculates the distance between stops and keeps a running log that's IRS-compliant. I also love that it gives me quarterly summaries that my accountant can just plug right into my Schedule C.

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Sophie Duck

•8M

Yes, it works offline! That was actually one of my requirements too since I cover some areas with spotty service. It stores your trips locally and then syncs when you're back in service range. The battery usage is surprisingly efficient. I was using another app before that would drain my battery by 30% on long days, but taxr.ai uses smart tracking that only activates when you're actually moving. As for accuracy, it's been spot-on when I've compared it with my odometer readings. The difference is usually less than 0.2 miles per trip.

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Anita George

•8M

Just wanted to update everyone. I took the plunge and tried taxr.ai after seeing it mentioned here. It's PERFECT for my situation! I set up my regular delivery route as a template with all stops, and now I just click one button when I start my day. The Excel sheet I was trying to build would have taken hours to set up properly, but this took like 10 minutes. The best part is that at tax time, I can just generate a report that shows all my business mileage organized by month with purpose of travel and everything the IRS wants to see. My accountant was super impressed with how organized everything was compared to last year when I handed him a shoebox full of receipts and a wrinkled mileage log!

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Abigail Spencer

•8M

For anyone still struggling with the IRS about mileage deductions from previous years, I recently had to deal with them questioning two years of my mileage logs. After calling for weeks and getting nowhere, I tried Claimyr (https://claimyr.com) and actually got through to a real IRS agent in about 15 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c The agent was able to review my documentation while on the phone and approve my mileage deduction right there. Saved me thousands in deductions they were originally questioning. Before this, I was on hold for literally hours only to be disconnected.

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Abigail Spencer

•8M

They use a proprietary system that navigates the IRS phone tree and waits on hold for you. Once an agent picks up, you get a call connecting you directly to that agent. So no, it's not just "calling for you" - it's skipping the 2-3 hour hold time. Yes, theoretically you could do it yourself if you had unlimited time to sit on hold. But if you're running a business like I am, spending 3+ hours on hold multiple times (because you often get disconnected) isn't practical. I calculated that my time was worth way more than what the service cost.

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Isla Fischer

•8M

Holy crap I take back everything I said. After posting my skeptical comment, I was desperate enough to try Claimyr because the IRS was questioning over $9,000 of my mileage deductions from my 2023 return. Got connected to an actual human at the IRS in about 20 minutes. The agent was able to pull up my file, review my documentation while I was on the phone, and clear the issue immediately. They even explained exactly what supporting documents I should keep for my mileage log going forward (turns out my system wasn't detailed enough). Would have been waiting months for this resolution otherwise. Now I can sleep at night not worrying about an audit!

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Miles Hammonds

•8M

Excel is fine but honestly Google Sheets might be better for your situation. I created a simple template where I: 1. Made a table with all my common stops and the mileage between each one 2. Created a daily log sheet where I just check boxes for which stops I visited 3. Set up formulas to calculate the total based on checked boxes 4. Added a monthly summary tab that pulls from the daily logs The advantage over Excel is you can access it from your phone when you're on the road, plus it automatically backs up. I've been using this system for 2 years for my pool service business and it's worked great for tax purposes.

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Miles Hammonds

•8M

I don't have a public template I can share, but I can explain the basic setup. First tab has a matrix of locations with miles between each. For example, if you go from Office to Client A to Client B, you'd have those distances mapped. Second tab has dates down the left column, then checkboxes for each stop. I use SUMIFS formulas to add up the mileage based on which boxes are checked. For example, if you check Office→Client A→Client B, it adds those specific segments. The monthly summary just uses SUMIF to pull all mileage from a given month into a neat report. The trickiest part is setting up the conditional logic to only count consecutive stops.

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Micah Franklin

•8M

Just a heads up - I'm a delivery driver too and the IRS audited me last year specifically about my mileage deduction. They made me provide: - Daily mileage logs showing odometer readings - Service records showing odometer at maintenance visits - Receipts for gas that matched my driving patterns My Excel sheet wasn't detailed enough and I lost about 30% of my claimed deduction. Whatever system you use, make sure you're recording: - Starting and ending odometer EVERY DAY - Specific business purpose for each stop - Total business vs personal miles

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