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Can freelancers deduct is gas tax deductible for business?

TL;DR

Freelancers can deduct gas expenses if they are incurred for business purposes.

Detailed Answer

Gas expenses are deductible for freelancers when they are directly related to business activities, such as traveling to meet clients or purchasing supplies. However, personal use of a vehicle is not deductible. Freelancers can choose to deduct actual expenses, including gas, or use the standard mileage rate set by the IRS.

Where to Put It on the Tax Form

Schedule C (Form 1040), Part II, Line 9 (Car and truck expenses)

Real World Example

A freelance photographer drives 50 miles to a client's location for a photo shoot. The gas used for this trip is deductible as a business expense.

Calculation Required

A calculation is required for this deduction.

Calculate the deduction by either tracking actual gas expenses or using the IRS standard mileage rate. For example, if the standard mileage rate is 65.5 cents per mile, multiply 50 miles by $0.655 to get a deduction of $32.75.

Audit Risk & Documentation Tips

Keep detailed records of business mileage, including dates, destinations, and purpose of trips. Maintain receipts for gas purchases if using actual expenses. Consider using a mileage tracking app to ensure accuracy.

IRS Reference

IRS Publication 463, Travel, Gift, and Car Expenses

Relevant Industries

FreelancersSmall BusinessConsultantsPhotographers

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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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