@hope10123 wrote:
I didn't keep track of the gas I put in but I did keep track of the all the mileage when i was delivering and I have paperwork where I replaced one of the tires. So my question is what would I do for the actual expense method @Opus 17
I just looked and I do have bank statements where I've paid for gas with my card, not sure if that'll work though
If audited, the IRS will want to see proof of how you determined your work-related expenses. Any expense you can't prove to the auditor's satisfaction may be denied. (All income is assumed to be taxable unless you prove otherwise.)
You need records of your car expenses for the year, and mileage records so you can determine the percentage of the car expenses that count as work expenses. The problem with relying on your credit card statement is that, without more proof, you could have fueled any car, or the expense could be candy and Red Bull. The IRS will usually accept a written log book, diary, spreadsheet program, phone app, or other record as being generally true, if there is evidence that you keep orderly records in a businesslike manner and that the record is made reasonably close in time to the expense. (In other words, using Quickbooks or Mint once a week is considered more reliable than trying to remember your expenses at the end of the month, and monthly is more reliable than trying to catch up at the end of the year.) If you are audited and seem to keep sloppy or incomplete records, they will give them less weight.
Ultimately, the risk is on you; most people are never audited, but if you are, you are responsible for proving your expenses to their satisfaction.
