Checkmark iconCan I Write This Off?

Can freelancers deduct is gas a write off?

TL;DR

Freelancers can deduct gas expenses as a business expense if the vehicle is used for business purposes, but they must choose between deducting actual expenses or using the standard mileage rate.

Detailed Answer

Gas expenses are deductible for freelancers when the vehicle is used for business activities, such as traveling to meet clients or purchasing supplies. Freelancers can choose to deduct either the actual expenses incurred (including gas, maintenance, and depreciation) or use the IRS standard mileage rate, which covers all vehicle-related costs. Personal use of the vehicle is not deductible, and accurate records must be kept to substantiate the business use percentage. For example, if a freelancer uses their car 60% for business, only 60% of the gas expenses can be deducted if using actual expenses. The standard mileage rate for 2023 is 65.5 cents per mile.

Where to Put It on the Tax Form

Schedule C, Line 9 (Car and truck expenses).

Real World Example

A freelance graphic designer drives 5,000 miles in a year for business purposes, such as meeting clients and attending industry events. Using the standard mileage rate, they can deduct $3,275 (5,000 miles x $0.655) 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. For actual expenses, calculate the percentage of business use and apply it to the total vehicle expenses, including gas.

Audit Risk & Documentation Tips

The audit risk is moderate. Freelancers should maintain a detailed mileage log, including dates, destinations, and business purposes of trips. Keep all receipts for gas and other vehicle expenses if deducting actual costs. Consider using apps to track mileage and expenses to ensure accuracy and compliance.

IRS Reference

IRS Publication 463 (Travel, Gift, and Car Expenses), IRS Publication 535 (Business Expenses), IRC §162.

Relevant Industries

FreelancersConsultantsReal Estate AgentsIndependent Contractors

Popular Related Pages

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

Back to Search