How to Track Your Amazon Flex Mileage

When delivering packages for Amazon Flex, tracking your mileage is extremely important because it allows you to accurately report your business-related mileage for tax purposes. By diligently tracking your mileage, you can provide accurate and detailed records to your tax preparer, which can help maximize your deductions and potentially lower your tax liability. This can result in significant savings come tax season.

Additionally, tracking your mileage is crucial for monitoring and managing your expenses. As an independent contractor, you are responsible for the costs associated with operating your vehicle - such as fuel, maintenance, and insurance. By keeping a record of your mileage, you can accurately calculate the costs incurred for each mileage driven.

This information allows you to analyze your expenses and make informed decisions about your operating costs. Understanding your mileage and associated costs can help you optimize your earnings and improve your overall profitability as an Amazon Flex driver.

👉 So, how do you track your mileage as an independent contractor?

First, there are no wrong ways to track your mileage. The most important thing is that you actually have a system in place. Because if you are going to write off your miles as a business expense on your taxes, you will need an organized way to document your miles driven.

Second, you need redundancy built into to tracking your mileage. In case one method fails, you have the second as a backup or for your own reference. For example, I use both a manual mileage log and mileage tracking app:

1️⃣ Mileage Tracking Apps - One very convenient option is to use mileage tracking apps - like Stride, MileIQ, Everlance, and TripLog, that are available for your smartphone. These mileage tracking apps use GPS to automatically track your mileage while you drive. It can accurately calculate the distance traveled and provide a breakdown of trips made business purposes. It even has a map overview and give you your total deduction amount.

Many mileage tracking apps also offer additional features like categorizing trips, generating reports, and integrating with other financial, tax, insurance, or health savings tools. However, if for whatever reason the app fails, you need to make sure you have another way to access your mileage. This is why I not only use the Stride app but take detailed notes in my iPhone.

2️⃣ Manual Mileage Log - Another way to track your mileage is by maintaining a manual mileage log. Keep a digital note in your phone to record the date and starting and ending odometer readings for each shift. Additionally, take note of the purpose for each trip, such as delivering packages for Amazon Flex or driving for other gig apps like Uber or Lyft.

This method requires discipline and consistency in recording the necessary information accurately. At the end of each shift, calculate the total miles driven for business purposes by subtracting the starting odometer reading from the ending odometer reading.

📈 Remember, regardless of the method you choose, it is important to be consistent and diligent in tracking your mileage. Accurate records will help you when it comes to tax deductions and managing your expenses effectively as an independent contractor and gig worker.