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Can freelancers deduct can you write off gas on taxes?

TL;DR

Freelancers can generally deduct gas expenses if they are directly related to business travel, but personal use is not deductible. It's important to distinguish between commuting and business travel, as commuting is not deductible.

Detailed Answer

Gas expenses can be deducted when they are incurred for business purposes, such as driving to meet clients, attending business meetings, or traveling to a job site. However, driving from home to a regular place of work is considered commuting and is not deductible. Freelancers can choose to deduct actual vehicle expenses, including gas, or use the standard mileage rate. For 2023, the standard mileage rate is 65.5 cents per mile. If using actual expenses, the deduction must be prorated based on the percentage of business use of the vehicle. For example, if 60% of the total miles driven in a year are for business, then 60% of the gas expenses can be deducted.

Where to Put It on the Tax Form

Schedule C, Line 9 for car and truck expenses. If using the standard mileage rate, include the total miles driven for business.

Real World Example

A freelance graphic designer drives 5,000 miles in a year, with 3,000 of those miles being for business purposes such as meeting clients and attending conferences. If they choose to deduct actual expenses, and they spent $1,500 on gas, they can deduct $900 (60% of $1,500) as a business expense.

Calculation Required

A calculation is required for this deduction.

To calculate the deduction using actual expenses, determine the percentage of total miles driven for business purposes and apply this percentage to the total gas expenses. Alternatively, use the standard mileage rate by multiplying the business miles driven by the IRS mileage rate.

Audit Risk & Documentation Tips

Moderate audit risk. Taxpayers should keep detailed mileage logs, receipts for gas purchases, and records of business purposes for each trip. Use apps or a physical logbook to track business miles driven and maintain records for at least three years.

IRS Reference

IRS Pub 463, Travel, Gift, and Car Expenses; IRS Pub 535, Business Expenses.

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 15, 2025

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