I have a full-time W-2 job, and I also have a side "gig" job as an independent contractor / mystery shopper. I use my own vehicle to travel. My home is my tax home for my independent contractor work, but I do not take a home office deduction because my work space is the kitchen table and so is not used exclusively for this purpose.
During the work week, I take mystery shop assignments that I can perform on my way to or from work, or on my lunch hour. Mystery shopping includes 4 steps: a) applying for and being assigned to a shop, b) studying instructions so that the assignment will be done to specifications, c) going to the location and performing the mystery shop, and d) reporting the results of the mystery shop. Each of these steps is important and necessary for successful completion of the assignment.
I study and print instructions for my assignments from home before I leave for the day. I complete the reporting portion of the mystery shop work as soon as I get back to my home office. I don't want to run afoul of the commuting rule, but I do want to make sure I am taking legally allowed expenses against the income I am earning from the mystery shops.
On work days when I also perform mystery shop assignments, my route looks like one of the following:
1) home - home office - full-time job - mystery shop (after work) - home office - home
2) home - home office - mystery shop (before work) - full-time job - home office - home
3) home - home office - full-time job - mystery shop (on lunch hour) - full-time job - home office - home
For these scenarios, which legs of travel qualify as commuting, and which qualify for mileage I can use as an expense against the related mystery shopping income on my Schedule C? Or am I looking at this the wrong way somehow? I have searched all over the internet and cannot find a clear answer to this question. Thank you.
Commuting is going from your home to your full-time W-2 job or your full-time W-2 job to your home. Any deviation from that route that is for your Mystery Shopping side gig are deductible business miles. If you are driving for your side gig, it is deductible on Schedule C. You just need to make sure you do not include the commuting miles (back and forth to your W-2 job) or personal miles (anything not commuting or side gig related) in your total miles driven number. If you take a detour (to do mystery shopping work) during your normal commute, those miles are deductible as they are for your Schedule C work and not your W-2 job.
I will include some links below with more information.
https://www.irs.gov/pub/irs-pdf/p463.pdf#page=13 IRS map (scroll up 1 page after clicking the link)
https://ttlc.intuit.com/questions/1901578-can-i-deduct-mileage
Commuting is going from your home to your full-time W-2 job or your full-time W-2 job to your home. Any deviation from that route that is for your Mystery Shopping side gig are deductible business miles. If you are driving for your side gig, it is deductible on Schedule C. You just need to make sure you do not include the commuting miles (back and forth to your W-2 job) or personal miles (anything not commuting or side gig related) in your total miles driven number. If you take a detour (to do mystery shopping work) during your normal commute, those miles are deductible as they are for your Schedule C work and not your W-2 job.
I will include some links below with more information.
https://www.irs.gov/pub/irs-pdf/p463.pdf#page=13 IRS map (scroll up 1 page after clicking the link)
https://ttlc.intuit.com/questions/1901578-can-i-deduct-mileage
Thank you for your reply, Dawn. I have read through the links above. However, I need additional clarity regarding travel to and from my home office. As mentioned above, the Mystery Shopping gig has two locations: 1) the site of the mystery shop, and 2) my home office, where the mystery shop reporting and administrative work is done. Can travel between these two locations be deducted on Schedule C?
Yes, you can deduct any mileage related to your Mystery shopping - it is only the commuting (to your W-2 job) that you can't include. You don't have a regular place of work for the side gig. It is always somewhere different so all your miles (for mystery shopping) are deductible. . Think of it like this: Your home/admin office and W-2 job location are both ''regular'' places. The places you go to do the mystery shopping are ''temporary'' places. Commuting is between regular places. It is a business expense/mile if the beginning or end destination is a ''temporary'' place. I hope that helps and doesn't further confuse.