Checkmark iconCan I Write This Off?

How do I deduct can you deduct gas from taxes on my taxes?

TL;DR

Gas expenses can be deductible if they are directly related to business use of a vehicle. It's important to distinguish between personal and business use to claim this deduction correctly.

Detailed Answer

Gas expenses are deductible when they are incurred for business purposes. This includes travel between job sites, client meetings, and other business-related travel. Personal commuting from home to a regular place of business is not deductible. To deduct gas, you can either use the actual expense method, which involves tracking all vehicle-related expenses including gas, or the standard mileage rate, which simplifies the process by multiplying business miles driven by a rate set by the IRS. For 2023, the standard mileage rate is 65.5 cents per mile. It's crucial to maintain a log of business miles and keep receipts for gas purchases if using the actual expense method.

Where to Put It on the Tax Form

Schedule C, Line 9 for car and truck expenses. If using Form 2106, it would be part of the unreimbursed employee expenses.

Real World Example

A freelance graphic designer who drives to various client locations can deduct gas expenses. If they drove 1,000 miles for business purposes in 2023, they could deduct $655 using the standard mileage rate (1,000 miles x $0.655).

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 actual expense method, 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 mileage log showing dates, miles driven, and business purpose. Save all gas receipts and any relevant documentation such as client appointments or contracts to substantiate the business use of the vehicle.

IRS Reference

IRS Publication 463 (Travel, Gift, and Car Expenses)

Relevant Industries

FreelancersReal Estate AgentsConsultantsDelivery ServicesSales Representatives

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