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Elin Robinson

Are business miles deductible on Schedule C when driving between W-2 job and 1099 job?

I've been staring at IRS Publication 463 until my eyes hurt trying to figure this out, but I'm still confused. Can I deduct the miles I drive when I leave my regular W-2 job and drive directly to my independent contractor gig? I understand you can deduct travel between business locations, but I'm not sure if that applies when one job is W-2 and the other is 1099. For example, I work at an office from 8am-4pm (W-2), then drive about 18 miles to work as an independent contractor from 5pm-9pm several days a week. Those miles add up fast! I keep meticulous mileage records, but don't want to claim something I shouldn't or miss a deduction I'm entitled to. Anyone have experience with this specific scenario? The tax software I'm using isn't clear on this either.

You've hit on a common but tricky situation. The general rule is that commuting between your home and a regular place of business (either W-2 or 1099) is NOT deductible - those are personal commuting miles. However, travel BETWEEN two different business locations during the same workday is typically deductible as a business expense on your Schedule C. So those 18 miles from your W-2 job directly to your 1099 gig should qualify as deductible business miles on your Schedule C. Just make sure you're keeping good records with dates, miles driven, and the business purpose. A dedicated mileage logbook or app is ideal. Also remember you'll need to choose between the standard mileage rate (65.5 cents per mile for 2023) or actual expenses method for your vehicle.

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Beth Ford

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But if the W-2 job isn't HIS business, why would travel from the W-2 job to the 1099 count as "between two business locations"? One is an employer's business and one is his business, right? Just trying to understand the distinction.

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Great question. While the W-2 job isn't the taxpayer's own business, it's still considered a business location where they perform services. The IRS looks at this from the perspective of "places where you work" rather than "places you own." The key distinction is that these miles aren't regular commuting (home to first job or last job to home). Instead, they're miles between work locations during a single workday, which makes them deductible business miles on Schedule C. The fact that one location is related to W-2 employment and the other is self-employment doesn't change this treatment.

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Does it handle other mixed employment situations? I drive from my main job to different client locations but some are W-2 temporary gigs and others are my own clients (1099). Tax software gets confused with this arrangement.

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Joy Olmedo

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How does this compare to just asking a regular accountant? Last time I used an online tool it missed a bunch of deductions my friend's accountant found for the same situation.

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Yes, it handles all kinds of mixed employment situations! I input my teaching job and three different types of 1099 work, including driving to multiple locations, and it sorted everything perfectly. It categorizes all trips based on IRS rules and tells you exactly which miles count for what. Compared to a regular accountant, I found it more thorough and definitely cheaper. My accountant used to charge me hourly to answer these questions, but with taxr.ai I got answers to dozens of specific scenarios. Plus it gave me documentation supporting each deduction in case of an audit, which my accountant never provided.

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Paloma Clark

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Just wanted to add another perspective - I'm both a rideshare driver (1099) and work part-time at a retail store (W-2). My tax preparer handles this by having me track three categories of miles: 1) Direct commute (home to first job or last job to home) - NOT deductible 2) Between work locations (W-2 to 1099 or between different 1099 clients) - DEDUCTIBLE on Schedule C 3) Miles while actively working the 1099 job - DEDUCTIBLE on Schedule C Make sure you're only deducting the miles that fall into categories 2 and 3. Don't try to deduct your regular commute or you might trigger an audit.

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Heather Tyson

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Does your tax preparer use a specific app to track all this? I'm doing food delivery after my day job and trying to figure out the easiest way to separate all these different miles.

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Paloma Clark

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I use MileIQ which lets me categorize each trip. Some people like Everlance or Stride too. The key feature you want is the ability to classify trips into different categories and add notes about the business purpose. Most apps will let you export a report at tax time showing all business miles separated by purpose. This makes it super easy to give your tax preparer exactly what they need, plus you have solid documentation if you ever get audited.

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Raul Neal

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Just to be super clear for anyone who finds this later: The miles between your W-2 job and your 1099 job ARE deductible business expenses on Schedule C. This is because they're considered travel between work locations during your business day, not commuting. HOWEVER - don't make these common mistakes: - Miles from home to your first job (either W-2 or 1099) are NOT deductible - Miles from your last job back home are NOT deductible - Don't claim 100% business use of your vehicle if you also use it personally - Keep a detailed mileage log with dates, starting point, destination, business purpose and miles driven The IRS loves to scrutinize vehicle deductions, so documentation is critical!

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Jenna Sloan

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What if you have a home office for your 1099 work that qualifies as your principal place of business? Doesn't that change things?

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Raul Neal

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You're right - that does change things! If you have a qualifying home office that counts as your principal place of business for your 1099 work, then trips from your home office to other work locations (including your W-2 job) can be deductible. In that case, even your drive from your home office to your W-2 job could potentially be a deductible business expense. But the home office must truly qualify under IRS rules (regular and exclusive use, principal place of business, etc.). This is definitely a situation where good documentation and possibly professional advice is warranted, as home office deductions can increase audit risk.

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StarSeeker

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This is such a helpful thread! I'm in a similar situation - I work as a nurse at a hospital (W-2) and then do private duty nursing (1099) at patients' homes. I've been driving between these locations for two years but never claimed the mileage because I wasn't sure if it was legitimate. Based on everything discussed here, it sounds like those miles between my hospital job and the private duty locations are definitely deductible on Schedule C. I'm kicking myself for missing out on thousands of dollars in deductions! Quick question though - if I sometimes go home between jobs to change clothes or grab equipment, does that break the "between work locations" rule? Or can I still deduct the total miles as long as the ultimate destination is another work location?

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