IRS Mileage Calculator

Self-employed people, sole proprietors, 1099 contractors and gig drivers deduct business miles on Schedule C. W-2 employees cannot deduct unreimbursed mileage on their federal return: the deduction for unreimbursed employee expenses is gone permanently. The exceptions are Armed Forces reservists, qualified performing artists, fee-basis state or local government officials and employees with impairment-related work expenses, who use Form 2106.

Counts: driving to clients, customers and job sites; between two workplaces; to a temporary work location; to the bank, post office or supplier for the business; and from a home office that is your principal place of business to other work locations.

Does not count: commuting from home to your regular office or shop, personal errands on the way, or miles your employer already reimbursed.

Instead of the standard rate you can deduct the business share of actual costs: gas, oil, repairs, tires, insurance, registration, lease payments and depreciation. Actual expenses usually win for expensive or inefficient vehicles; the standard rate wins for economical cars and needs far less paperwork. To use the standard rate on a car you own, you must choose it in the first year the car is used for business. You cannot use it for five or more vehicles operated at the same time, or after claiming accelerated depreciation or a Section 179 deduction on the car.

Not if your employer uses an accountable plan and pays no more than the IRS rate. The plan must require a business purpose, a mileage log submitted within a reasonable time (the IRS safe harbor is 60 days) and the return of any excess (within 120 days). Anything paid above the IRS rate, or a flat car allowance with no log, is taxable wages and belongs on your W-2.