A self-employed independent contractor (1099) can claim a deduction for miles driven to a job assignment. You cannot deduct miles driven for other reasons even if you drove the same vehicle. The IRS requires you to take relatively straight routes from one location to another. An auditor may not allow you to claim side trips between two points if they added to the total length of your reported deductible use. You can deduct mileage driven for non-work reasons related to the business. This includes driving to the bank to make a deposit and meeting with professionals managing your business.
The IRS allows self-employed independent contractors to receive a tax deduction for business miles. The IRS sets the reimbursement rate each year and sometimes adjusts the rate after the first six months of the year. This rate, known as the standard mileage rate, provides the taxpayer with a per-mile tax deduction.. Some states also allow you to deduct business mileage when reporting state income tax, but state mileage rates do not always follow federal rates. Some states use the federal rate while others set their own rates.
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