Can fuel costs be used as a deduction?

I'm in RR construction and my work is all over.
You can claim deductible business auto expenses in one of two ways.

    IRS Mileage Rate:  You can claim business miles times the IRS mileage rate.  IRS mileage rates for business activities are $.555/mile.
    Actual Cost:You can claim your actual costs including depreciation times the percentage that you use your car for business.  Actual costs would include gas, oil, insurance, repairs, etc. Payments on a note would not be deductible.  The cost of the vehicle would be deducted through depreciation instead (or lease deducting lease payments if you lease it.)

Where to Deduct

If you are an employee, they are a miscellaneous itemized deduction.  Miscellaneous itemized deductions are only available if you qualify to itemize and only to the extent that they exceed 2% of your Adjusted Gross Income.  Example:  If your Adjusted Gross Income is $50,000, only miscellaneous itemized deductions over $1,000 are deductible.  Because of this, many items deductible as miscellaneous itemized deductions have no tax value because the taxpayer doesn't itemize, or because they are lost in the 2% of adjusted gross income limitation.

If you are self-employed, these expenses would be business expenses on Schedule C.

(No matter which method you use, your auto expenses must be reduced by any reimbursement not otherwise reported as income.)
  • My expenses do exceed 2% of gross income.  I just can't find where to enter that information.
Contribute an answer

People come to TurboTax AnswerXchange for help and answers—we want to let them know that we're here to listen and share our knowledge. We do that with the style and format of our responses. Here are five guidelines:

  1. Keep it conversational. When answering questions, write like you speak. Imagine you're explaining something to a trusted friend, using simple, everyday language. Avoid jargon and technical terms when possible. When no other word will do, explain technical terms in plain English.
  2. Be clear and state the answer right up front. Ask yourself what specific information the person really needs and then provide it. Stick to the topic and avoid unnecessary details. Break information down into a numbered or bulleted list and highlight the most important details in bold.
  3. Be concise. Aim for no more than two short sentences in a paragraph, and try to keep paragraphs to two lines. A wall of text can look intimidating and many won't read it, so break it up. It's okay to link to other resources for more details, but avoid giving answers that contain little more than a link.
  4. Be a good listener. When people post very general questions, take a second to try to understand what they're really looking for. Then, provide a response that guides them to the best possible outcome.
  5. Be encouraging and positive. Look for ways to eliminate uncertainty by anticipating people's concerns. Make it apparent that we really like helping them achieve positive outcomes.