Can I Write This Off?

Can freelancers deduct can you claim gas to work on taxes?

TL;DR

Freelancers can deduct gas expenses if they are directly related to business activities, but not for commuting between home and a regular place of work. Misunderstanding commuting rules is a common mistake.

Detailed Answer

Gas expenses are deductible when they are incurred for business-related travel, such as visiting clients, attending meetings, or running business errands. However, commuting expenses, which are costs incurred traveling from home to a regular place of business, are not deductible. For freelancers who work from home, any travel from their home office to a business location can be considered business travel. It's important to distinguish between personal and business use of the vehicle. The IRS allows for two methods to deduct vehicle expenses: the standard mileage rate or actual expenses, which includes gas. The standard mileage rate for 2023 is 65.5 cents per mile. If using actual expenses, you must calculate the percentage of business use.

Where to Put It on the Tax Form

Schedule C, Line 9

Real World Example

A freelance graphic designer drives 100 miles in a month to meet clients and purchase supplies. They can deduct either the actual gas costs or use the standard mileage rate, which would be $65.50 (100 miles x $0.655) for that month.

Calculation Required

A calculation is required for this deduction.

To calculate the deduction using the standard mileage rate, multiply the business miles driven by the IRS mileage rate. For actual expenses, calculate the total vehicle expenses and multiply by the percentage of business use.

Audit Risk & Documentation Tips

Moderate. Keep a detailed mileage log, including dates, business purpose, and miles driven. Retain all receipts for gas purchases and any other vehicle-related expenses if using actual expenses. Documentation should clearly separate personal and business use.

IRS Reference

IRS Pub 463

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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