AlanT222
Expert Alumni

Deductions & credits

Mileage is an allowable deduction if you are self-employed or own your own business. You can choose between the standard mileage rate or the actual cost method where you keep track of what you paid for gas and maintenance.

 

To use the standard mileage rate, you must keep a log of each trip with miles driven during the first year your vehicle is used for business. After that, you can either go with standard mileage or actual cost (unless you lease, in which case you must stick with standard mileage for the duration of the lease).

 

Taxpayers can also claim mileage for medical or charitable purposes, and active-duty military can claim mileage for the move to a permanent change of station (PCS) under military orders.

 

Employees can no longer deduct work-related mileage in tax years 2018 through 2025 due to the Tax Cuts and Jobs Act (TCJA) that Congress signed into law on December 22, 2017. Prior to the tax law change, employees could deduct mileage for commuting between multiple job sites during the same day, as well as commutes to temporary work locations and off-site business meetings.

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