How to Write Off Gas on Your Taxes

People who travel frequently on business may be able to deduct gas expenses from their taxable income.

Traveling can be an unavoidable expense in certain lines of work. The government has provided deductions for some people who have to travel frequently on business. You can write off gas on your taxes if you travel frequently for your employer and are not reimbursed, travel from a regular job to a second job, or travel frequently for a self-employed business.

Things You'll Need

• Travel record

Instructions

1. Determine the method that you would like to claim. The government has provided two ways to write off gas on your taxes. The easiest way is the standard mileage rate deduction, which is a set amount per mile. As of 2011, the standard rate is 51 cents per mile for business travel, 19 cents per mile for medical travel and 14 cents per mile for charitable organization travel, but you will want to check with the IRS to determine the current rates. Find a link in the References section. The other method is the actual-cost method. With this method, you deduct the actual cost of gas per mile. This usually yields higher deductions.

2. Keep a detailed record of the trips that are eligible. You will need to have a record to prove that you used your vehicle for business or medical purposes if you ever get audited. It is recommended that you keep a record of the date, start point, ending point, purpose, and trip miles. If you are going to use the actual-cost method, you will need to include the current cost of gas.

3. Begin filing your taxes. Fill out the appropriate forms. This tutorial will use Form 1040. You can fill out the forms by hand or use a web services to file electronically. If you are using Form 1040, make sure to complete Schedule A -- Itemized Deductions.

4. File Form 2106 -- Employee Business Expenses. When filling out this form, fill out Part II first because you will need information from this section to complete Part I. To write-off the gas using the Standard Mileage Rate, complete Section B by multiplying the number of miles driven by the current standard rate. Enter this number in the appropriate box. To write off the gas using the Actual Expenses method, determine the amount spent on gas and any other vehicle expenses that you are claiming. Enter this number in box "23."

References

• Internal Revenue Service: Car Expenses and Other Emploee Business Expenses
• "Smart Money" Small Business: Writing Off Your Car Expenses
• IRS: Standard Mileage Rate 2011