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Can freelancers deduct can you deduct gas and mileage?

TL;DR

Freelancers can deduct gas and mileage expenses if they are directly related to business activities.

Detailed Answer

Freelancers can deduct either actual vehicle expenses (including gas) or the standard mileage rate for business use of their vehicle. To deduct these expenses, the vehicle use must be directly related to business activities, such as traveling to meet clients or purchasing supplies. Personal use of the vehicle is not deductible. Freelancers must choose between the actual expense method and the standard mileage rate method for the tax year and cannot switch between them for the same vehicle.

Where to Put It on the Tax Form

Schedule C (Form 1040), Line 9 for car and truck expenses

Real World Example

A freelance photographer drives 100 miles to a photo shoot. They can either deduct the actual cost of gas for that trip or use the standard mileage rate to calculate the deduction.

Calculation Required

A calculation is required for this deduction.

To use the standard mileage rate, multiply the total business miles driven by the IRS standard mileage rate for the year. For actual expenses, calculate the total cost of operating the vehicle (gas, maintenance, insurance, etc.) and multiply by the percentage of business use.

Audit Risk & Documentation Tips

Maintain a detailed mileage log or use a mileage tracking app to record the date, miles driven, and purpose of each trip. Keep receipts for gas and other vehicle expenses if using the actual expense method. Consistent and accurate records reduce audit risk.

IRS Reference

IRS Publication 463 (Travel, Gift, and Car Expenses) and IRS Publication 535 (Business Expenses)

Relevant Industries

FreelancersSmall BusinessConsultantsGig Economy

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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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