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Can freelancers deduct is gas tax deductible?

TL;DR

Gas expenses can be deductible for freelancers if they are directly related to business use of a vehicle. Personal use of gas is not deductible.

Detailed Answer

Freelancers can deduct gas expenses if the vehicle is used for business purposes, such as traveling to meet clients or transporting goods. The deduction can be taken using the actual expenses method, which includes gas, or the standard mileage rate method, which covers all vehicle-related costs. Personal commuting or non-business use of the vehicle is not deductible. For example, a freelance photographer driving to a client’s location can deduct the gas used for that trip. However, driving to a personal event is not deductible. It's important to maintain a log of business miles driven and keep receipts if using the actual expenses method.

Where to Put It on the Tax Form

Schedule C, Line 9 or Line 44, depending on the method used (actual expenses or standard mileage rate).

Real World Example

A freelance graphic designer drives 200 miles in a year to meet clients. Using the standard mileage rate for 2023, which is 65.5 cents per mile, they can deduct $131 (200 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 the year. For actual expenses, 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 log of business miles driven, including dates, destinations, and purpose of trips. Save all gas receipts and any other vehicle-related expenses if using the actual expenses method. Consider using a mileage tracking app to ensure accuracy.

IRS Reference

IRS Pub 463

Relevant Industries

FreelancersConsultantsReal Estate AgentsPhotographers

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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 25, 2025

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