Mileage Deduction.
In plain English
The mileage deduction, also called the standard mileage method, lets self-employed people deduct business driving by multiplying their business miles by a flat per-mile rate the IRS sets each year. It covers gas, wear and tear, insurance, and depreciation in one number, so you do not have to add up each car cost separately. You still need a log showing the date, miles, and business purpose of each trip. Commuting from home to a regular workplace does not count; only business travel like client visits or supply runs qualifies.
01Why it matters
Business driving adds up fast, and good mileage records can turn thousands of work miles into a real deduction, but a missing or guessed-at log is one of the first things an auditor disallows.
02The math, step by step
Nina drives 6,000 miles for her cleaning business during the year. She multiplies those 6,000 miles by the IRS standard mileage rate of 72.5 cents per mile (2026 rate) to get a $4,350 deduction. Her phone app logged every trip with the date and client, so the number holds up if anyone asks.
03What this is NOT
The mileage deduction is not the same as deducting your real car costs. With mileage you use one flat rate per mile, while the actual expense method tracks gas, repairs, and depreciation separately. You generally pick one approach per vehicle, not both.
04Receipts
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