<img height="1" width="1" style="display:none" src="https://www.facebook.com/tr?id=690758617926394&amp;ev=PageView&amp;noscript=1">
The Complete Payroll Blog

A quick overview of business mileage deductions

Posted by Complete Payroll | Dec 15, 2016 1:38:44 PM

A quick overview of business mileage deductions

Are you eligible to deduct mileage costs when you file your taxes?

If you own or lease your vehicle, and its not part of a fleet, you can deduct mileage and other expenses. So if you're an employee that uses your personal car to conduct your responsibilities for your employer, or if you are self-employed, you can deduct several costs of operating that car.

Standard mileage rate

The easiest way to calculate your mileage expenses incurred for business purposes is to use the standard rate of 53.5 cents per mile—that's the 2017 rate. You'll always want to consult the IRS to see the going rate for the year you're filing, as it usually changes.

Other vehicular deductions

You can also deduct tolls and parking expenses that you have to pay while on the job, except for fees you may have to pay to park your car at your place of work. If you work at two places in one day, you can include the number of miles you drive getting from one workplace to the other.

Tracking your mileage

The important thing is to keep track of your vehicle mileage. This can be as low-tech as keeping a notebook and pencil in your glove compartment and writing down your departure and arrival mileage, or as high-tech as downloading an app that keeps track of it all for you. But you can only deduct trips that are for business.

What counts as a deduction?

What many people forget, or maybe don't know, is that you can also deduct driving miles for:

  • Business-related errands such as trips to the bank, office supply store or post office
  • Trips made to business meals and entertainment, such as meeting with clients or vendors for dinner, coffee or cocktails.
  • The miles you drive to and from the airport for a business trip.
  • Customer visits, whether at a work site, their office, or a job site.

Independent contractors and unemployed workers

If you are a sole proprietor or contract worker and you are driving to a temporary work location that you expect to last less than one year, you should keep track of those miles. And if you're unemployed and looking for a job, you can deduct the miles that you drive for interviews, meetings with career counselors, or other specific job-search-related trips.

Get in touch with us

Topics: Taxes, Employees

Written by Complete Payroll

We do payroll, HR, timekeeping and more for employers all over the country from a small, rural town in Upstate New York. And we're constantly publishing articles and other resources to help business owners, HR managers or anyone that helps manage a workforce. Welcome to Payroll Country!

Are you using our free resources?

We're constantly publishing free tools to help with payroll, HR and other administrative objectives.

New call-to-action
New Call-to-action

Subscribe to instant blog email notifications

Recent Posts

General Disclaimer

The materials and information available at this website and included in this blog are for informational purposes only, are not intended for the purpose of providing legal advice, and may not be relied upon as legal advice.  The employees of Complete Payroll are not licensed attorneys. This information and all of the information contained on this website are provided pursuant to and in compliance with federal and state statutes. It does not encompass other regulations that may exist, including, but not limited to, local ordinances. Complete Payroll makes no representations as to the accuracy, completeness, currentness, suitability, or validity of the information on this website and does not adopt any information contained on this website as its own. All information is provided on an as-is basis.  Please consult an attorney to obtain advice with respect to any particular question or issue.