Is double dipping on vehicle expenses frowned at by the IRS? Need advice!

This isn't double dipping at all - it's actually a completely legitimate deduction as long as you're tracking things properly. The key is maintaining separate, detailed records for your W-2 employment driving versus your self-employment driving. For your self-employment/consulting work, you can absolutely claim the standard mileage deduction on Schedule C for the miles driven exclusively for that business. The IRS understands that people use the same vehicle for multiple purposes. They just expect you to have good documentation showing which miles were for which purpose. Make sure you keep a mileage log with dates, starting/ending odometer readings, destinations, and the business purpose of each trip for your consulting work. A digital app that tracks this can be really helpful, but even a physical notebook works fine as long as it's consistent and detailed.

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Just wanted to add that you should consider actual expenses vs. standard mileage rate too. With 50k miles annually on your car, you might be better off with actual expenses depending on your vehicle. For 2023 its 65.5 cents per mile for standard, but if you have a gas guzzler or expensive maintenance, actual expenses might be better. I track both throughout the year and calculate which gives the better deduction at tax time. Remember though, if you use actual expenses the first year, you're locked into that method for the life of that vehicle. If you use standard mileage the first year, you can switch between methods each year.

One more thing to consider - if your main employer offers any kind of reimbursement for mileage (even partially), make sure you're taking advantage of that too. Its not double dipping to get reimbursed from your employer AND deduct your self-employment miles separately. Just don't claim the same miles twice. Also, don't forget about potential home office deduction if you have a dedicated space for your consulting business. That can also increase the deductible miles since you'd count trips from your home office to clients as business miles rather than commuting.

Great question about vehicle expenses! As others have mentioned, you're absolutely fine to deduct mileage for your consulting business as long as you keep proper records. This is completely legitimate and not double dipping at all. One thing I'd add that hasn't been mentioned yet - make sure you're aware of the updated 2024 standard mileage rate, which is 67 cents per mile for business use (up from 65.5 cents in 2023). With 8,700 miles for your consulting work, that's a potential deduction of $5,829, which is definitely worth claiming properly. Also, since you're driving 50k miles annually, make sure you're factoring in the increased depreciation on your vehicle. Even though you can't deduct your W-2 job mileage, that heavy usage does affect your vehicle's value, so maximizing legitimate business deductions becomes even more important. Keep detailed logs with date, destination, business purpose, and odometer readings for each consulting trip. A simple spreadsheet or mileage tracking app works great for this. The IRS just wants to see that you can substantiate the business purpose of each mile claimed.