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Can freelancers deduct can you write off gas on taxes 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, with specific documentation required for each.

Detailed Answer

Gas expenses are deductible for freelancers when the vehicle is used for business purposes. Freelancers can choose between the actual expense method, which includes gas, maintenance, and other vehicle-related costs, or the standard mileage rate method, which covers all vehicle expenses at a set rate per mile driven for business. Personal use of the vehicle is not deductible, and the business portion must be clearly documented. For example, if a freelancer drives 10,000 miles in a year and 6,000 of those are for business, only 60% of the actual expenses can be deducted. Alternatively, they can use the standard mileage rate for the 6,000 business miles.

Where to Put It on the Tax Form

Schedule C, Line 9 for car and truck expenses. If using Form 2106, refer to Line 1 for unreimbursed employee expenses.

Real World Example

A freelance graphic designer uses their car to meet clients and attend networking events. They drive 8,000 miles for business out of 12,000 total miles in a year. They choose the standard mileage rate method, which allows them to deduct 8,000 miles at the IRS rate (e.g., $0.655 per mile in 2023), totaling $5,240.

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 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. Keep a detailed mileage log, including dates, destinations, and business purposes of trips. Retain receipts for gas and other vehicle expenses if using the actual expense method. Consistent and accurate records are crucial to substantiate the deduction.

IRS Reference

IRS Publication 463, Travel, Gift, and Car Expenses; IRS Publication 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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