You can — but only if you don’t deduct your mileage!
People who drive for work have two options when deducting expenses:
1) The actual expense method: the cost of actual car expenses (such as gas, maintenance, car payments, and a few others),
OR
2) The standard mileage method: deducting a standard amount for every business mile driven. The standard mileage rate for 2019 rate was 58 cents per mile and will be 57.5 cents per mile for 2020. Stride will automatically calculate your mileage deduction for you based on the year in which you're driving.
If you deduct both your mileage and your gas and maintenance expenses, you’d be double-deducting the same expense (since the mileage rate includes the cost of gas and maintenance already)—which the IRS really doesn't like!
Not sure which method is best for you? No problem. The mileage deduction typically gives the highest deduction, especially if you drive a lot for work.
That being said, you might as well track both your mileage and your actual car expenses. Then you can determine at the end of the year which expense method is best for you!
Comments
3 comments
...more great tips!
Cheers!
Rich
Glad to hear this was helpful, Rich!
-Tade @ Stride
This is great thank you!
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