How do I properly document and deduct my business mileage on my California tax return as a gig worker?

To deduct business mileage, you must keep detailed, contemporaneous records of your driving and report the deduction on the correct tax forms. California generally follows federal rules for this deduction, so proper documentation is critical for both your state and federal returns. Here are the steps to properly document and deduct your business mileage: Step 1: Choose Your Record-Keeping Method Decide whether you will use a mileage-tracking app (like MileIQ, Everlance, or Stride) or a manual logbook. Apps can automate tracking, but a physical log is acceptable if you are diligent. The key is to record trips as they happen or soon after. Step 2: Keep a Contemporaneous Mileage Log For every business trip, you must record the following information at or near the time of the drive: - The date of the trip. - Your starting point. - Your destination. - The business purpose of the trip (e.g., "Client meeting with John Doe" or "Pickup for DoorDash delivery"). - Your vehicle's starting and ending odometer readings, which gives you the total miles for that trip. Step 3: Calculate Your Total Business Miles At the end of the year, add up the miles from all your individual business trips. Do not include personal travel or commuting miles (the distance from your home to your primary place of work, if you have one). Step 4: Calculate and Report Your Deduction Multiply your total business miles by the standard mileage rate set by the IRS for that tax year. Report this total deduction on IRS Form 1040, Schedule C (Profit or Loss from Business). This information will then flow through to your California Form 540 when you file your state taxes with the Franchise Tax Board (FTB). Important Details and Nuances: Under California law (RTC § 17270), your ability to deduct these expenses depends on your classification as an independent contractor. If you are classified as an employee under Labor Code § 2775 (AB 5), you generally cannot deduct unreimbursed business expenses on your state return. Ensure you are correctly classified. Warnings and Limitations: The California Franchise Tax Board and the IRS require you to maintain adequate records to prove your expenses (RTC § 19141.6). Without a detailed and contemporaneous log, your deduction may be disallowed in an audit. Simply estimating your mileage at the end of the year is not sufficient. This is general information and does not constitute legal advice. For complex situations, especially concerning worker classification, consult with a qualified California attorney.