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Can freelancers deduct can you write off gas for work?

TL;DR

Freelancers can generally deduct gas expenses if the vehicle is used for business purposes, but they must choose between the actual expense method or the standard mileage rate method for vehicle deductions.

Detailed Answer

Gas expenses are deductible for freelancers if the vehicle is used for business purposes. Freelancers can choose between deducting actual expenses (including gas, oil, repairs, insurance, etc.) or using the IRS standard mileage rate, which accounts for gas and other costs. The vehicle must be used primarily for business, and personal use must be excluded. For example, if a freelancer uses their car 70% for business and 30% for personal use, only 70% of the gas expenses can be deducted if using the actual expense method. The standard mileage rate for 2023 is 65.5 cents per mile driven for business use. It's important to maintain a log of business miles driven and keep receipts if using the actual expense method.

Where to Put It on the Tax Form

Schedule C, Line 9 for car and truck expenses.

Real World Example

A freelance photographer drives to various locations for photo shoots. In 2023, they drove 10,000 miles for business and 3,000 miles for personal use. They choose the standard mileage rate, deducting $6,550 (10,000 miles x 65.5 cents) 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 (65.5 cents per mile for 2023). For actual expenses, calculate the percentage of business use and apply it to total vehicle expenses.

Audit Risk & Documentation Tips

Moderate audit risk. Maintain a detailed mileage log showing dates, business purpose, and miles driven. Keep receipts for all vehicle-related expenses if using the actual expense method. Use apps or spreadsheets to track mileage and expenses consistently.

IRS Reference

IRS Pub 463, IRS Pub 535, IRS Pub 334

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 18, 2025

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