Question

I have a question about self-employed tax deductions. What self-employed vehicle expenses am I eligible to deduct?

Answer

To deduct vehicle expenses, you can use standard mileage or actual expenses. For either method, keep a log of the miles you drive for your business. Both methods allow self-employed tax deductions for tolls and parking fees.

If you use the standard mileage rate, you can only deduct the mileage at a standard rate. For 2019, the rate is $0.58. You cannot deduct self-employed vehicle expenses, including:

  • Actual vehicle expenses
  • Depreciation
  • Lease payments
  • Maintenance
  • Repairs
  • Gasoline
  • Oil
  • Insurance
  • Vehicle registration fees

If you use actual vehicle expenses, you can’t deduct mileage. Instead, you can deduct:

  • Depreciation
  • Licenses
  • Lease payments
  • Registration fees
  • Gas
  • Oil
  • Insurance
  • Repairs
  • Tires
  • Garage rental

If you use your car for both business and personal use, you must prorate your expenses. To learn more about self-employed vehicle expenses, see Publication 463: Travel, Entertainment, Gift, and Car Expenses at www.irs.gov.

Related Topics

Related Resources

Estimate Earnings If I Haven't Received A W-2?

If you haven't received a W-2, can you estimate your earnings instead? Learn more from the tax experts at H&R Block.

California Tax Rates

Are you a wage earner in California? If so, you may owe California income tax. Learn more about California tax rates, based on your filing status and AGI.

Claiming Child And Dependent Care Credits

Can you claim expenses for a disabled adult dependent? Learn more from the tax experts at H&R Block.

How to Qualify for Tax Deductible Moving Expenses

There are several criteria that you must meet in order to deductible moving expenses. See if you qualify with the tax experts at H&R Block.