Commuting to work can be expensive for those who live far from their jobs. It would be nice if you could claim a tax deduction for some or all of your commuting costs, but most people cannot do that. Commuting to and from work is considered a personal expense. It is not tax-deductible any more than the coffee you bought on your way.
Changes to Mileage Deductions
In previous tax years, self-employed individuals, most businesses, and even many individual taxpayers could deduct mileage for business purposes. However, in the tax years from 2018 to 2025, many of these exemptions for individuals were eliminated.
Mileage Deduction for Travel Away from Home
Generally, you cannot deduct travel expenses from and to your tax home. This is your regular place of work (or place of service). It encompasses the entire city or general area where the business or place you work is located.
Mileage Deduction for Temporary Assignment
The IRS allows you to deduct mileage when you travel away from your tax home to perform a temporary assignment. If you drive from home to your regular workplace, that mileage cannot be deducted. But if it’s necessary for your employer to work at a different location, you may be able to deduct that mileage.
How Commuting Miles Work
If you are commuting 800 miles a month from home to work at an offshore oil platform, that will not be deductible. Even if the platform’s location changes, your commuting expenses will not be deductible as they are personal non-deductible expenses. Each platform is your regular place of work and your tax home while you work there.
Standard Mileage Rate vs Actual Expenses
The standard mileage deduction rate is $0.585 for the first half of the 2022 tax year and $0.625 for the second half. You have the option to claim this amount or a percentage of your actual vehicle expenses instead. These expenses include: fuel, insurance, parking fees, tolls, oil, registration fees, tires, repairs, depreciation.
Self-Employment
The rules change significantly if you are self-employed. Any time you leave your work location, you can start counting the miles and costs from the moment you leave that place. This is true whether you are working from home or maintaining another work site, as long as you are traveling for business purposes.
Expiration of the Tax Cuts and Jobs Act
The Tax Cuts and Jobs Act will expire at the end of December 2025 unless Congress takes steps to renew it. If it expires, various tax exemptions may revert to the tax code in 2026. Until then, you are in a bit of a pickle if you have to travel for business purposes unless you are self-employed.
Frequently Asked Questions (FAQs)
What mileage can I deduct for work?
If you are a business owner, you can deduct any mileage since you left your work location for business purposes. For example, if you are going from your office to a business meeting, you can deduct that mileage. It doesn’t matter if your work location is at home or in a traditional office building.
How can I deduct work mileage?
To claim work mileage if you are a business owner, you will report it on Schedule C and you won’t need to itemize expenses to claim the deduction.
Thank you for using our FAQ service. If you have any other questions, please feel free to ask.
Sources:
IRS. “Law change affects moving, mileage, and travel expenses.”
IRS. “Travel, gifts, and car expenses.”
IRS. “Increase in the mileage rate for the remainder of 2022.”
IRS. “Standard mileage rates.”
IRS. “Publication 463, travel, gifts, and car expenses: car expenses.”
IRS.
“Form 2106 Instructions.”
IRS. “Publication 529, Various Exemptions.”
IRS. “Topic No. 510 Business Use of Car.”
Internal Revenue Service. “Topic No. 502 Medical and Dental Expenses.”
Source: https://www.thebalancemoney.com/mileage-deduction-for-commuting-to-work-3973992
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