Can I deduct mileage?
Mileage is an allowable deduction if you’re a business owner or self-employed.
You can also claim mileage:
- For medical or charitable purposes.
- As a moving expense that was related to your job.
- If you qualify to claim it as part of employee business expenses. (You would only benefit from taking these expenses if you use itemized deductions on your return.)
But, if you’re an employee, you can’t claim mileage for commuting between your home and your main workplace.
As a business owner self-employed individual, you can either take the standard mileage rate or the actual cost method, which tracks what you paid for gas and maintenance.
To use the standard mileage rate, you must keep a log of each trip with miles driven during the first year your vehicle is used for business. After that, you can either go with standard mileage or actual cost (unless you lease, in which case you must stick with standard mileage for the duration of the lease).