Can You Write Off Mileage for Work?

Claiming tax deductions can reduce taxable income, and work-related mileage is a common area for this. Individuals using their vehicles for business may deduct associated expenses. This deduction helps offset vehicle operating costs for professional activities. Understanding the rules is essential for claiming this benefit accurately.

Understanding Eligibility and Qualifying Mileage

Mileage deductions for work-related travel are primarily available to self-employed individuals and business owners. This includes freelancers, independent contractors, and those reporting income on Schedule C. Employees generally cannot claim a deduction for unreimbursed work mileage. Limited exceptions exist for certain government officials, qualified performing artists, and Armed Forces reservists.

Qualifying business mileage includes driving to meet clients or customers, traveling between different workplaces, and visiting temporary work locations. Running business-related errands, such as trips to the bank or for office supplies, also qualifies. Travel to business meetings, conferences, or trade shows is deductible.

Certain types of mileage do not qualify for a deduction. The most common non-deductible travel is commuting from home to your regular workplace. This daily travel is a personal expense. However, if you have a legitimate home office as your principal place of business, trips from your home office to other business locations or client meetings are deductible. Driving from home to pick up a first passenger or returning home after dropping off the last passenger for rideshare drivers is not deductible.

Calculating Your Mileage Deduction

Two primary methods are available for calculating your mileage deduction: the standard mileage rate and the actual expense method. Each approach offers a different way to calculate the deductible amount, impacting your tax savings. You generally cannot switch from the actual expense method to the standard mileage rate for the same vehicle in later years if you start with actual expenses. However, you may switch to the actual expense method in a later year if you begin with the standard mileage rate.

The standard mileage rate method is a simpler approach. You multiply your total business miles by a set rate determined annually by the IRS. For 2025, the business standard mileage rate is 70 cents per mile. This rate accounts for average vehicle operating costs, including depreciation, fuel, oil, maintenance, and insurance. You can also deduct business-related parking fees and tolls separately.

Alternatively, the actual expense method allows you to deduct the actual costs of operating your vehicle for business purposes. This method requires more detailed record-keeping but can result in a larger deduction if your vehicle expenses are higher than the standard mileage rate would provide. Deductible expenses under this method include gas, oil, repairs, tires, insurance premiums, and registration fees. You can also include lease payments or a depreciation deduction if you own the vehicle. To calculate the deduction, you determine the percentage of your vehicle’s total use that was for business and then apply that percentage to your total vehicle expenses.

Essential Record Keeping

Accurate and detailed record-keeping is essential for substantiating any mileage deduction claimed. The IRS requires specific information to validate your business vehicle expenses, regardless of the method chosen. Maintaining proper records is important in case of an audit.

For each business trip, your records should include the date, destination, purpose, and miles driven. Recording starting and ending odometer readings for each trip is recommended, though the IRS primarily requires annual readings. Records should be kept at or near the time of the trip to ensure accuracy.

Various methods can be used for record-keeping, including written mileage logs, mobile applications, or GPS tracking devices. Digital solutions often simplify the process by automatically tracking miles and generating reports. Consistency and completeness are essential, regardless of the method chosen. Retain these records for at least three years from your tax return filing date, as this is the general IRS audit period.

Claiming Your Deduction

After tracking your business mileage and calculating your deduction, the final step is reporting this information on your tax forms. Self-employed individuals and small business owners typically report mileage deductions on Schedule C (Form 1040), Profit or Loss from Business.

On Schedule C, you will enter your car and truck expenses on Line 9. If you elect the standard mileage rate, you will also complete Part IV, Information on Your Vehicle, to provide details about the vehicle’s business use. If you are claiming actual expenses, depreciation is reported on Line 13, and lease payments are reported on Line 20a. Parking fees and tolls incurred for business purposes are added to your total car and truck expenses on Line 9, regardless of the calculation method used.