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Question
Can I deduct car mileage, phone bill, gas receipts, new tires, car maintenance, car insurance and tolls on my SE form?
Answer

Yes and yes, but it’s an either-or situation.You have two options when writing off your car: business mileage or actual costs. You have to pick one or the other.

  1. The business mileage deduction is a flat rate of $0.56 per mile for 2021. The IRS releases a new standard mileage rate every year that is intended to cover the cost of depreciation, fuel, repairs, insurance, etc.
  2. The actual costs method lets you write-off your what you actually paid for fuel, maintenance, insurance, etc, as well as depreciate your vehicle over its useful life.

For more in-depth instructions on how to write-off your auto expenses, check out our Guide to Car Deductions.

Note: tolls and parking fees are fully deductible under both methods.

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Sarah York, EA

Sarah is an Enrolled Agent with the IRS and has 6 years of tax and accounting experience. She's an avid hiker, animal lover, and self-proclaimed chocolate connoisseur.

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