Q. Can I still log those miles for reimbursement if I decide to start using a rental car?
A. You'll have to ask the agency how they want to handle that.
Q. Can I still deduct those miles, on my tax return, if I decide to start using a rental car?
A. No. Instead, you deduct your actual out-of-pocket cost for the rental and gasoline.
Usually, when you are a "1099 employee", the "employer"/agency will include the reimbursement in the amount reported on the 1099. If they do, you must include that amount as income on your tax return (Schedule C). Then you claim a deduction for the mileage (in the case of using your car) or actual expenses (for a rental car).
