Stop Using Your Smartwatch for Mileage (Until You Read This IRS Rule)

You bought your watch for tracking steps, but the IRS tracks your mileage. Did you miss out on this key tax deduction? When you purchase through links on our site, we may earn an affiliate commission. Here’s how it works. Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.You are now subscribedYour newsletter sign-up was successfulWant to add more newsletters?Delivered dailyKiplinger TodayProfit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more delivered daily. 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That's because those who use fitness apps to track business miles might not be aware of the in-app limitations.For instance, many free versions of distance-tracking apps cap the number of trips you can take, forcing you to record them later. But if you aren't logging your miles correctly at the time of the trip, the IRS can disallow your entire deduction under the contemporaneous record rule.And at the 2026 IRS business mileage rate of 72.5 cents per mile*, those trips through Uber, DoorDash, real estate clients, and supply stores can quickly add up to a significant tax deduction.Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special IssuesProfit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.Profit and prosper with the best of expert advice - straight to your e-mail.By incorrectly recording miles, you could be leaving some serious cash on the table — or worse, raising an IRS audit red flag if you include those inaccurate trips on your return.Here's the IRS rule you need to follow before claiming mileage on your federal income taxes.Note: If you are currently filing your 2025 taxes, the rate for those miles is 70 cents.The 2026 IRS mileage rate of 72.5 cents per mile has strict requirements for what constitutes a valid business mileage log. You must meet four specific data points for every single trip to be eligible for a deduction:Additionally, to help support your claim to an IRS mileage deduction, you must follow these specific requirements:Though many mileage apps offer "one-tap" tracking from a smartwatch, users should be cautious. Not all convenient features meet the IRS's rigorous standards for a business expense deduction. For instance, GPS-based apps can:To mitigate the risk of data gaps, look for mileage apps that offer offline functionality. Apps like Timeero continue to track GPS coordinates even in "dead zones," syncing the data once your connection is restored.Beyond live tracking, maintaining redundant digital backups of your logs is a critical — yet often overlooked — step. In the event of a smartwatch malfunction or a lost device, these backups can significantly bolster your contemporaneous records during an IRS inquiry.GPS tracking is a powerful tool, but it shouldn't be your only line of defense in substantiating your IRS mileage deduction. Consider these two backup methods to supplement your smartwatch capabilities:However, it's important to note that odometers can be inaccurate as well, especially if you have worn tires, incorrect tire pressure, or non-standard tire sizes. Thus, having two methods of recording each business trip promotes a complete record of your mileage.The bottom line? Your smartwatch is a great tool, but like all tools, it can have flaws. If you use your watch to drive professionally and for personal fitness, the burden is on you to prove which specific miles were strictly for business. And if your watch breaks, you just might be out of luck.Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.Kate is a CPA with experience in audit and technology. As a Tax Writer at Kiplinger, Kate believes that tax and finance news should meet people where they are today, across cultural, educational, and disciplinary backgrounds.