Standard Mileage Rate Deduction: Who Qualifies and What You Get
Learn how freelancers can use a flat rate per mile to deduct business travel costs from their taxes.
The Standard Mileage Rate Deduction allows freelancers to deduct a set amount for every mile driven for business purposes.
Who it's for
This is for freelancers who use their personal vehicles to travel for business.
What you get
You receive a flat deduction for every business mile you drive. This acts as a way to write off a portion of your vehicle's costs without tracking every individual receipt for gas or repairs.
What it costs you
To use this, you must maintain a daily log. You need to record each business trip, the total miles driven, and the specific purpose of the trip.
The catch to know
You cannot claim both the actual expenses of your vehicle and the standard mileage rate for the same vehicle. You must choose one method.
How to apply
- Keep a detailed log of all business-related driving throughout the year.
- Note the date, the destination, and the reason for the trip.
- Total your business miles at the end of the tax year.
- Use the official rate when filing your taxes.
Check the official portal for the current amount: https://www.irs.gov/tax-professionals/standard-mileage-rates