Can I deduct mileage on taxes when my employer only pays for gas?

Unfortunately, you're in a bit of a gray area with this situation. When you receive a gas card from your employer but use your personal vehicle, you cannot claim the standard mileage deduction because that would essentially be "double-dipping" - the standard mileage rate (65.5 cents per mile for 2024) already includes the cost of gas. However, you might be able to deduct actual expenses for the wear and tear, maintenance, insurance, and depreciation portion of your vehicle expenses - basically everything except the gas. This requires detailed record keeping and calculating what percentage of your actual vehicle expenses (minus gas) were for business use. Keep in mind that if you're a W-2 employee, the Tax Cuts and Jobs Act eliminated miscellaneous itemized deductions for employees, including unreimbursed business expenses. This means you likely cannot deduct these expenses on your personal tax return unless you're self-employed or have a side business.

After struggling with a similar situation (company gas card but using my own car), I found this awesome tool at https://taxr.ai that helped me figure out exactly what I could claim. I uploaded my mileage log and a photo of my gas card policy, and it analyzed everything to show what portions I might be eligible to deduct. The tool explained that while I couldn't claim the standard mileage rate since gas was covered, there were other potential deductions I might qualify for depending on my employment classification. It spelled out exactly what documentation I needed to keep and how to approach it on my tax return.

Just wanted to follow up - I tried the taxr.ai site that was mentioned here and it was super helpful for my contractor situation! Uploaded my mileage logs and partial reimbursement records, and it clearly showed what I could claim. The best part was it actually explained WHY certain deductions were allowed or not allowed in my case, and gave me the exact forms and line numbers where I needed to report everything. Definitely made me feel more confident about my tax situation rather than just guessing or paying someone $300 to tell me the same thing.

If you need to actually talk to the IRS about your specific situation (which might be smart given how complicated this is), I recommend trying https://claimyr.com to get through to an agent quickly. I had to call the IRS multiple times about a similar mileage deduction issue last year and kept hitting dead ends with hours on hold. Claimyr got me connected to an actual IRS representative in about 15 minutes instead of the usual 2+ hour wait. They have a video showing how it works here: https://youtu.be/_kiP6q8DX5c The IRS agent I spoke with confirmed my specific situation (which was similar to yours - company paid some expenses but not others) and gave me official guidance I could rely on if ever questioned.

I need to apologize and correct myself. After being skeptical about Claimyr, I decided to try it myself since I had an unresolved tax question about mileage deductions that had been hanging over my head for months. It actually worked exactly as described. I got connected to an IRS agent in about 20 minutes (which is miraculous compared to my previous attempts). The agent was definitely a real IRS employee and provided clear guidance on my situation. For what it's worth, the agent told me that as a W-2 employee, I cannot deduct mileage when my employer provides a gas card but doesn't reimburse maintenance/depreciation. However, they suggested I talk to my employer about potentially switching to a mileage reimbursement program instead of a gas card, which could be better for both parties.

You should talk to your employer about this. My company switched from gas cards to the standard mileage reimbursement and it worked out better for everyone. The company actually saved money overall (less administrative hassle tracking gas cards), and we employees got fair compensation for wear and tear on our vehicles. For 7,500 miles at the 2024 rate, that would be about $4,912 in reimbursement. Your employer might be able to deduct that as a business expense while providing you tax-free reimbursement. Worth bringing up to your boss or HR department!

I've been in construction for 15 years and have seen companies handle this all different ways. Here's what I've learned - if your company ONLY pays for gas but nothing else (wear and tear, oil changes, tires, etc.), you're getting a raw deal. 7,500 miles of job site driving will absolutely destroy your truck over time. That's brakes, suspension work, depreciation, etc. Gas is honestly the smaller expense compared to everything else.

I went through this exact situation last year as a W-2 employee. Unfortunately, as others have mentioned, you can't deduct mileage expenses on your personal return when you're getting the gas card - the Tax Cuts and Jobs Act really screwed over employees with unreimbursed business expenses. But here's what I'd strongly recommend: Start documenting EVERYTHING beyond just mileage. Track your maintenance costs, tire replacements, oil changes, brake work - all the stuff your gas card doesn't cover. At 7,500 miles of job site driving, you're looking at serious wear and tear costs. Then take all that documentation to your employer and make a business case for switching to standard mileage reimbursement. Show them that at 65.5 cents per mile, your 7,500 miles would cost them about $4,912 - but they might actually save money on administrative costs from not managing gas cards. Plus it's better for employee retention when people aren't subsidizing the company's business with their personal vehicle expenses. If they won't budge, honestly consider looking for another construction management job that either provides a company vehicle or proper mileage reimbursement. Your truck shouldn't be a business expense you have to eat.