Can I deduct mileage for W2 employment and 1099 freelance work with the same company?

This is a great question about a tricky situation! When you have both W2 and 1099 income from essentially the same company, the IRS looks at the primary relationship you have with that employer. Since you're now primarily a W2 employee of Company X, your commute to their office is considered non-deductible personal travel - even on days when you're doing both W2 and 1099 work. The IRS generally sees this as regular commuting, which isn't deductible. For the 1099 portion specifically, you might be able to deduct mileage for trips that are exclusively for your freelance work (like meeting clients, purchasing supplies, etc.) - but not for regular travel to the same office where you perform your W2 duties. Having a home office doesn't automatically make all travel deductible either. To deduct travel from your home office to another location, that travel needs to be specifically for your self-employment activities, not for your regular employment.

I went through something similar last year and discovered https://taxr.ai which really helped me sort through this exact W2/1099 hybrid situation. I initially thought I could deduct all my mileage since part of my income was 1099, but got conflicting advice from friends. The tool analyzed my situation and clarified that I needed to separate my work activities carefully to claim any mileage deductions. It showed me how to document when I was specifically doing 1099 contract work versus my regular W2 duties, which made a huge difference for my deductions. What really helped was uploading my payment documents and getting a breakdown of which expenses were allocable to which income stream. Saved me a ton in potential audit headaches!

Just wanted to follow up after trying https://taxr.ai - it was actually really helpful for my situation! I uploaded my W2 and 1099 docs and it clearly showed me which portion of my travel could be legitimately deducted. Turns out I was missing several deductions related to my 1099 work that I was afraid to claim because I wasn't sure how to separate them from my W2 employment. The analysis showed I could claim about 35% of my home office and mileage for specific 1099 project days, which is saving me around $1,800 on my taxes this year. The documentation guidance it provided seems really solid too - I feel much more confident about backing up my deductions if I ever get questioned.

For everyone struggling with IRS questions about mixed W2/1099 situations - I was in the same boat and spent WEEKS trying to get through to the IRS for clarification. Every time I called, I got the "call volume too high" message and got disconnected. I finally discovered https://claimyr.com and watched their demo at https://youtu.be/_kiP6q8DX5c. They actually got me connected to an IRS agent in about 20 minutes when I'd been trying for days on my own. The agent was able to confirm exactly how the IRS views my mixed income situation and gave me specific guidance on my mileage deduction questions. Saved me from potentially making a costly mistake on my return!

I have to eat my words about Claimyr. After my skeptical comment, I decided to try it myself since I've been dealing with a similar W2/1099 issue and couldn't get clear guidance. Surprisingly, it actually worked. Got connected to an IRS agent in about 15 minutes after trying unsuccessfully on my own for weeks. The agent confirmed that for my situation, I can deduct mileage on days when I'm specifically doing 1099 work and not performing any W2 duties, even if it's at the same location. They emphasized keeping extremely detailed records showing the purpose of each trip and recommended having separate calendars for W2 and 1099 work to clearly document when I'm wearing which "hat." Definitely worth it to get definitive answers straight from the IRS.

One thing nobody's mentioned yet - look at the specific language in your W2 employment contract. Mine specifically states my official work location, which affected my ability to claim my home office as my "primary" place of business. If your contract says your official workplace is the company office, you might have trouble convincing the IRS that your home office is your primary business location. But if your W2 employment is officially remote or doesn't specify a location, you've got a stronger case.

My tax guy told me the key is having a completely separate business entity for the 1099 work. If its just you getting paid both ways, the IRS tends to view it as one job. But if you have an LLC or S-Corp for your freelance work that contracts with the company, that creates clearer separation.

The advice about having a separate business entity is solid, but you don't necessarily need to set up an LLC or S-Corp to make legitimate deductions work. What matters most is being able to clearly demonstrate that your 1099 work is genuinely separate from your W2 duties. I'd focus on three key documentation strategies: 1) Keep separate calendars/logs showing when you're doing W2 vs 1099 work, 2) Maintain records of any different clients, projects, or deliverables for your 1099 work, and 3) Track your mileage with specific business purposes noted (not just "went to office"). The IRS will scrutinize situations like yours more closely, but as long as you can show legitimate business separation and aren't just trying to convert regular commuting expenses into deductions, you should be fine. Consider consulting with a tax professional who specializes in mixed employment situations - the upfront cost is usually worth avoiding potential audit issues down the road.