You are thinking employee ... the poster is self employed. All billed income is reported on the Sch C and then any expenses can be deducted from the income. So if the income is increased by a "mileage allowance" that is billed to the client then the mileage expense can be deducted as an expense. Same thing if the business owner takes a job out of town for a customer and adds travel costs to the billing invoice ... then the travel expenses can be deducted on the Sch C. Basically an IN & OUT transaction on the Sch C.
