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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

If you have self-employment income, 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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Answer

If you have self-employment income, 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.

No answer given yet!

Keeper Staff

Keeper is a delightfully smart tax filing software that's especially useful for people with 1099 contracting and freelance income. Our blog breaks down IRS guidance with real-world examples and analysis by tax professionals — empowering taxpayers to save money and take control of their finances.

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