> ## Documentation Index
> Fetch the complete documentation index at: https://docs.taxhomebase.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Mileage Deduction

> IRS standard mileage rates, what qualifies, and how to keep a compliant log.

<Snippet file="tax-disclaimer.mdx" />

The IRS standard mileage deduction is one of the most valuable tax benefits for travel nurses. It covers the cost of using your personal vehicle for work-related travel — but the IRS requires detailed, contemporaneous records.

## IRS Standard Mileage Rates

| Year | Rate per Mile |
| ---- | ------------- |
| 2024 | \$0.67        |
| 2025 | \$0.70        |
| 2026 | \$0.70        |

The rate covers gas, depreciation, insurance, maintenance, and repairs. You don't need to track individual vehicle expenses when using the standard rate.

## What Qualifies as Deductible

| Trip Type                        | Deductible? | Notes                                   |
| -------------------------------- | ----------- | --------------------------------------- |
| Tax home to assignment (initial) | Yes         | Travel to start a new contract          |
| Assignment to tax home (return)  | Yes         | Travel home between/after contracts     |
| Facility to facility             | Yes         | Travel between work locations           |
| Home to licensing office         | Yes         | License renewals, testing               |
| Daily commute at assignment      | No          | Home-to-work at your temporary location |
| Personal errands                 | No          | Non-work-related driving                |

<Info>
  Your daily commute from your temporary housing to the facility is generally **not** deductible — it's treated the same as any employee's commute. The deduction applies to travel **between** your tax home and assignment locations.
</Info>

## IRS Recordkeeping Requirements

The IRS requires a **contemporaneous log** — records made at or near the time of each trip. Your log must include:

1. **Date** of the trip
2. **Destination** (or route)
3. **Business purpose** of the trip
4. **Miles driven**

<Warning>
  Reconstructing a mileage log at tax time from memory is not compliant and may not survive an audit. Log trips as they happen.
</Warning>

## W-2 vs. 1099

<Tabs>
  <Tab title="W-2 Employees">
    Under TCJA (now permanent), mileage deductions for W-2 employees are suspended on federal returns. However:

    * 5 states still allow them on state returns (NY, CA, AL, HI, AR)
    * The deduction is included in assignment profitability calculations
  </Tab>

  <Tab title="1099 Contractors">
    Mileage is a Schedule C business expense that reduces self-employment income before SE tax. This can be significant — for example, 20,000 qualifying business miles at $0.70/mile would produce a $14,000 deduction.
  </Tab>
</Tabs>

## How TaxHomeBase Helps

* **[Mileage page](/guides/mileage)** — Log trips with date, miles, purpose, origin, destination
* **Purpose categories** — tax\_home\_visit, work\_travel, licensing, personal, other
* **Deductibility tracking** — Automatic classification based on purpose
* **Summary calculations** — Total miles, deductible miles, estimated deduction
* **Export** — Mileage Log CSV export for tax preparation
* **Integration** — Mileage feeds into Tax Estimate, Assignment Profitability, and Tax Home Analysis