Commuting is never tax deductible, either for W-2 employees or independent contractors. Commuting is the travel from your home to your main place of work and back again, no matter how far it is.
If you are a W-2 employee and the business provides you with a company car, and you are allowed to use it for personal use as well, they must include the value of the personal use as part of your taxable income (in most cases). This is complicated and I'm not going to talk about it further for now. If your company is including the value of a company car in your wages, you need to talk to them about how they determined the amount to include.
If you use your personal vehicle for commuting, it is never deductible. If you also use your personal vehicle for other business travel, that used to be deductible (subject to certain limitations) but that deduction was eliminated for the years 2018-2025 by the 2018 tax reform law. Mileage may still be deductible on your state tax return.
If you are a W-2 employee working from home, work mileage on your personal car is never deductible due to the tax reform act. Mileage may still be deductible on your state tax return. You need to keep accurate mileage records as described in chapter 4 of publication 463, also see Figure B in the same publication.
Mileage may still be deductible on your state tax return.
If you are an independent contractor, and your regular place of business is your home, you can deduct most of your mileage away from home on business. You must keep accurate records as described in publication 463, chapter 4.
If you are traveling away from home (away from your tax home) and staying overnight, that is "travel" (chapter 1) and not transportation (chapter 4). Travel expenses for W-2 employees are not deductible, you may want to renegotiate your employment agreement or ask your employer to reimburse you. If you are a schedule C independent contractor, you can deduct mileage, lodging, and half your meals, when you travel away from home on business. Your tax home is where you earn most of your money. For example, suppose you live in Buffalo NY and work in Rochester NY. You drive 90 miles on Monday morning, work 10 hours Monday-Thursday, stay in a hotel or apartment, and drive home Thursday night for the weekend. Because you work in Rochester, Rochester is your tax home, and all the driving and lodging is a non-deductible commute.
