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Can freelancers deduct can you write gas off on taxes?

TL;DR

Freelancers can deduct gas expenses if they are directly related to business activities, but only for the portion of gas used for business purposes. Personal use of gas is not deductible.

Detailed Answer

Gas expenses are deductible for freelancers when the vehicle is used for business purposes, such as traveling to client meetings or purchasing supplies. The deduction can be claimed using either the actual expense method, which involves tracking all vehicle-related expenses, or the standard mileage rate method, which simplifies the process by multiplying business miles driven by the IRS standard mileage rate. Gas expenses for commuting between home and a regular place of business are not deductible. It's crucial to differentiate between personal and business use, and only the business portion is deductible.

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 line for gas is needed.

Real World Example

A freelance graphic designer drives 1,000 miles in a year for client meetings and purchasing supplies. Using the 2023 IRS standard mileage rate of 65.5 cents per mile, they can deduct $655 (1,000 miles x $0.655) as a business expense.

Calculation Required

A calculation is required for this deduction.

To calculate the deduction using the standard mileage rate, multiply the total business miles driven by the IRS standard mileage rate for the year. For the actual expense method, calculate the percentage of business use and apply it to total vehicle expenses, including gas.

Audit Risk & Documentation Tips

Moderate audit risk. Maintain a detailed mileage log with dates, destinations, and business purposes for each trip. Keep receipts for all gas purchases and other vehicle-related expenses if using the actual expense method. Consider using apps or software to track mileage and expenses accurately.

IRS Reference

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

Relevant Industries

FreelancersConsultantsReal Estate AgentsContractors

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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 25, 2025

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