Determining What Exactly Counts as Business Mileage

Forum|Forum|3 years ago
February 11, 2023
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My trips are serving an increasingly messy combination of purposes. I work one W2 job and have multiple 1099 jobs that I do as an independent contractor. A common trip looks like this; 46 miles from home to a health care provider for a regular visit, 2 miles from there to a work location for my job, 101 miles from there to a work location for my business, 144 miles from there to a work location for both my job and my business, 6 miles from there to another work location for both my job and my business, 11 miles from there to a work location for only my job and 17 miles from there back home.

My employer reimburses me for the round-trip distance from my home to the first work location only (since it's located in another city). They are aware that I don't go straight there and back.

I do not have a qualified home office.

Which segments are deductible and which aren't?

MonikaK1

Your mileage between your home and a regular job location (such as your employer's place of business) is always nondeductible commuting mileage.

You should track all of the trips that qualify for your employer's accountable plan separately.

Unlike business miles, what the IRS considers "commuting miles" aren't tax-deductible. If a business mile takes you from one workplace to another, a commuting mile takes you between your home and a workplace.

For your Schedule C / self-employment, trips between business locations and trips outside your commuting area (such as travel away overnight) are deductible.

See IRS Publication 463 for more guidance.

See also this TurboTax tips article for more information on Federal tax laws and employer-accountable plans.

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Matt136Author

So is driving from my 'day job' (if you will) to a location for my business considered commuting or business? And what about vice versa (when I'm done working for clients for the day and drive directly to my place of employment)?

ErnieS0

Your business mileage deduction depends on what these “work locations” are. Driving to a regular place of work is a non-deductible commuting expense, whether you are an employee or an independent contractor. So is driving from one regular place of work to another.

If these are client visits, you may deducible business miles. However, you said you don't have a qualified home office, so I'm unsure how you are defining the primary work location for your business.

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