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Can freelancers deduct can you write off fuel on taxes?

TL;DR

Freelancers can generally deduct fuel expenses if they use their vehicle for business purposes, but they must choose between the actual expense method or the standard mileage rate method.

Detailed Answer

Fuel expenses are deductible when the vehicle is used for business purposes. Freelancers can choose to deduct actual vehicle expenses, which include fuel, or use the standard mileage rate set by the IRS. The actual expense method requires detailed records of all vehicle-related expenses, while the standard mileage rate simplifies this by allowing a fixed rate per mile driven for business. Personal use of the vehicle is not deductible, and only the business-use portion can be claimed. 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 actual vehicle expenses or 6,000 miles at the standard mileage rate.

Where to Put It on the Tax Form

Schedule C, Line 9

Real World Example

A freelance photographer drives 8,000 miles in a year, with 5,000 miles for business. They choose the standard mileage rate of 65.5 cents per mile (2023 rate), resulting in a deduction of $3,275 (5,000 miles x $0.655).

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 the year. For actual expenses, calculate the percentage of business use and apply it to total vehicle expenses, including fuel.

Audit Risk & Documentation Tips

Moderate audit risk. Maintain a detailed mileage log with dates, destinations, and purpose of trips. Keep receipts for fuel and other vehicle expenses if using the actual expense method. Documentation should clearly separate personal and business use.

IRS Reference

IRS Publication 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 25, 2025

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