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Can freelancers deduct can you deduct gas from taxes?

TL;DR

Freelancers can deduct gas expenses if they are directly related to business use.

Detailed Answer

Freelancers can deduct gas expenses when the vehicle is used for business purposes, such as driving to client meetings or purchasing supplies. Personal use of the vehicle is not deductible. The deduction can be calculated using the actual expense method, which includes gas, or the standard mileage rate, which simplifies the process by using a fixed rate per mile driven for business purposes.

Where to Put It on the Tax Form

Schedule C (Form 1040), Part II, Line 9 (Car and Truck Expenses)

Real World Example

A freelance graphic designer drives 100 miles to meet a client and purchase supplies. They can deduct the gas cost if using the actual expense method or use the standard mileage rate for those 100 miles.

Calculation Required

A calculation is required for this deduction.

Calculate the deduction using the actual expense method by tracking all vehicle-related expenses, including gas, and multiplying by the percentage of business use. Alternatively, use the standard mileage rate by multiplying business miles driven by the IRS mileage rate.

Audit Risk & Documentation Tips

Keep a detailed log of business miles driven, including dates, destinations, and purpose. Retain all 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

Relevant Industries

FreelancersSmall BusinessConsultantsContractors

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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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