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Can freelancers deduct can i deduct gas from taxes?

TL;DR

Freelancers can generally deduct gas expenses if they are directly related to business use of a vehicle. It's important to distinguish between personal and business use to ensure compliance with IRS rules.

Detailed Answer

Gas expenses are deductible for freelancers when the vehicle is used for business purposes, such as traveling to meet clients or purchasing supplies. Personal use of the vehicle is not deductible. Freelancers can choose between deducting actual expenses, including gas, or using the standard mileage rate, which covers gas and other vehicle-related costs. It's crucial to maintain accurate records of business miles driven versus personal miles to substantiate the deduction. For example, if a freelancer drives 10,000 miles in a year and 6,000 of those are for business, they can deduct 60% of their actual vehicle expenses, including gas, or use the standard mileage rate for the business miles driven.

Where to Put It on the Tax Form

Schedule C, Line 9 for Car and Truck Expenses. If using the standard mileage rate, no separate gas deduction is needed.

Real World Example

A freelance graphic designer drives 8,000 miles in a year, with 5,000 miles used for business purposes such as client meetings and purchasing supplies. They can either deduct 62.5% of their actual vehicle expenses, including gas, or apply the standard mileage rate to the 5,000 business miles.

Calculation Required

A calculation is required for this deduction.

To calculate the deduction using actual expenses, determine the percentage of business use by dividing business miles by total miles driven, then apply this percentage to the total gas expenses. Alternatively, use the standard mileage rate for business miles.

Audit Risk & Documentation Tips

Moderate audit risk. Keep detailed logs of business miles, including dates, destinations, and purposes of trips. Retain all receipts for gas purchases and maintain a mileage log or use a mileage tracking app to substantiate the business use percentage.

IRS Reference

IRS Pub 463, Travel, Gift, and Car Expenses; IRS Pub 535, Business Expenses.

Relevant Industries

FreelancersConsultantsReal Estate AgentsIndependent Contractors

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Disclaimer: This is for informational purposes only and should not be construed as tax or legal advice. Always consult your tax advisor.

Page created on July 15, 2025

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