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

TL;DR

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

Detailed Answer

Gas expenses are deductible for freelancers when the vehicle is used for business purposes, such as traveling to meet clients, picking up supplies, or attending business-related events. Personal commuting and personal errands are not deductible. Freelancers can choose between deducting actual vehicle expenses, which include gas, or using the standard mileage rate, which accounts for gas and other vehicle costs. The standard mileage rate for 2023 is 65.5 cents per mile. If using actual expenses, only the business-use portion of gas expenses is deductible. Detailed records must be kept to substantiate the business use percentage.

Where to Put It on the Tax Form

Schedule C, Line 9 for car and truck expenses. If using actual expenses, attach Form 4562 for depreciation and amortization.

Real World Example

A freelance photographer drives to various locations for photo shoots. She keeps a log of her business mileage and chooses to deduct actual vehicle expenses. In 2023, she spends $1,200 on gas, and her log shows 70% of her vehicle use is for business. She can deduct $840 (70% of $1,200) as a business expense.

Calculation Required

A calculation is required for this deduction.

To calculate the deductible portion of gas expenses, multiply the total gas expenses by the percentage of business use. For example, if $1,200 is spent on gas and 70% of the vehicle use is for business, the deductible amount is $1,200 x 70% = $840.

Audit Risk & Documentation Tips

Moderate audit risk. Maintain a detailed mileage log, including dates, destinations, purpose of trips, and odometer readings. Keep all gas receipts and any related documentation to support the business use percentage. Consider using apps or software to track mileage and expenses accurately.

IRS Reference

IRS Publication 463 (Travel, Gift, and Car Expenses), IRS Publication 535 (Business Expenses), IRS Publication 334 (Tax Guide for Small Business)

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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