Can I Write This Off?

Can freelancers deduct can you write gas off on your taxes?

TL;DR

Freelancers can deduct gas expenses if they are directly related to business use of their vehicle. However, personal use of the vehicle is not deductible, and accurate records must be maintained to substantiate the business portion of the expenses.

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 the actual expense method, where you track all vehicle-related expenses, or the standard mileage rate method, which simplifies record-keeping by allowing a deduction based on miles driven for business. Personal commuting and personal trips are not deductible. 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 gas expenses if using the actual expense method. Alternatively, they can use the standard mileage rate, which for 2023 is 65.5 cents per mile.

Where to Put It on the Tax Form

Schedule C, Line 9 for car and truck expenses. If using the actual expense method, additional details may be required on Form 4562.

Real World Example

A freelance graphic designer drives to various client locations for meetings and project discussions. Over the year, they drive 5,000 miles for business out of a total of 8,000 miles driven. They choose the standard mileage rate method, allowing them to deduct $3,275 (5,000 miles x $0.655) on their Schedule C.

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 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 showing dates, destinations, and purpose of each trip. Keep receipts for all vehicle-related expenses if using the actual expense method. Consider using apps or tools to track mileage automatically.

IRS Reference

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

Relevant Industries

FreelancersConsultantsReal Estate AgentsDelivery Services

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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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