Checkmark iconCan I Write This Off?

Can I write off gas for work?

TL;DR

Yes, you can write off gas for work under certain conditions.

Detailed Answer

If you are self-employed or a business owner, you can deduct the cost of gas for business-related driving. This includes traveling to meet clients, pick up supplies, or any other trip that directly supports your business. However, commuting from your home to your regular place of business is generally not deductible. If you're an employee, you can no longer deduct unreimbursed employee expenses, including the cost of gas, due to changes from the Tax Cuts and Jobs Act. You have two options for deducting vehicle-related expenses: the standard mileage rate (which includes gas) or actual car expenses (including gas, oil changes, repairs, insurance, etc.). You must keep accurate records to substantiate your deductions.

Where to Put It on the Tax Form

Schedule C, Line 9 for self-employed. Form 2106 for employees.

Real World Example

A freelance photographer drives 10,000 miles in a year for business purposes. They can deduct the cost of gas for these miles using the standard mileage rate (58.5 cents per mile in 2021), which would amount to a $5,850 deduction.

Calculation Required

A calculation is required for this deduction.

You can calculate your gas deduction by multiplying your business miles by the standard mileage rate, or by calculating the percentage of time your car is used for business and applying that percentage to your total gas expenses.

Audit Risk & Documentation Tips

There is a moderate audit risk for car expenses. Keep a detailed log of your business miles, including dates, destinations, and the purpose of each trip. Also keep receipts for your gas purchases.

IRS Reference

IRS Publication 463, Travel, Gift, and Car Expenses; IRS Notice 2021-02 for standard mileage rates.

Relevant Industries

FreelancersSmall BusinessRideshare DriversSales Professionals

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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 3, 2025

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