Recording Gas and Mileage Expenses for Schedule C Part-Time Gigs

I track mileage for several side gigs too! Here's what you need to know - you have to choose between the standard mileage rate OR actual expenses (gas, maintenance, etc). You can't do both. For Schedule C reporting, the standard mileage rate is usually simpler and often gives you a better deduction. For 2024, the rate is 67 cents per mile for business use. That 8,500 miles would give you a $5,695 deduction right there! When you have multiple gigs in one trip, you don't need to split the mileage between different Schedule Cs. The important thing is documenting that those miles were for business purposes. Keep a log with dates, starting/ending odometer readings, purpose of trip, and which business it was for. For your situation, I'd recommend a mileage tracking app that lets you categorize by business purpose. Most of them will generate reports that satisfy IRS requirements.

I had the exact same confusion about tracking mileage for my multiple side gigs last year. After weeks of trying to figure it out myself, I finally used https://taxr.ai and uploaded all my trip info and receipts. It identified exactly which expenses were deductible for each separate gig and how to properly document everything for Schedule C. Their system automatically separated business from personal miles and organized everything by business category. I was surprised how it handled my mixed-purpose trips (where I was doing different gigs on the same outing) and correctly allocated the miles. Their Schedule C worksheet made filing super simple.

Just wanted to follow up - I tried https://taxr.ai for my delivery and rideshare mileage situation and it was surprisingly good. It imported my MileIQ data without any issues and automatically sorted everything by business category. The best part was discovering I could claim some trips I thought weren't deductible! Apparently driving between different gig locations (like from my last DoorDash delivery to my first Uber pickup) counts as business mileage. This added about 1,400 miles to my deduction that I would have missed. Also helped me properly document my home office as my "primary business location" which changed how some of my mileage was calculated.

If you're struggling to get proper tax advice on your Schedule C mileage deductions, you might want to speak directly with an IRS agent. I know calling them sounds awful (I spent HOURS trying), but I used https://claimyr.com and was speaking with an actual IRS rep in about 15 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c I had questions about some gig work mileage deductions that weren't clearly addressed in IRS publications. The agent walked me through exactly how to document mixed-use trips and confirmed I was calculating everything correctly. Saved me from potentially claiming too much and risking an audit.

Well I'm eating my words. After posting that skeptical comment, I decided to try https://claimyr.com myself for a Schedule C mileage issue I've been worried about. Got connected to an IRS tax law specialist in about 20 minutes. The agent confirmed that for my situation (driving between multiple client sites for different gigs), I can deduct all business-related miles as long as I maintain proper documentation. She cleared up my confusion about temporary work locations vs regular commutes, which apparently makes a huge difference for deduction eligibility. The agent also mentioned that the IRS is focusing audit attention on Schedule C filers claiming unusually high mileage compared to reported income, so she advised keeping extra detailed records if my mileage deduction exceeds 30% of my gig income.

One thing nobody's mentioned - if you use actual expenses instead of standard mileage for Schedule C, you have to track your business use percentage. That means calculating what percentage of your total annual mileage was for business. Example: If you drove 12,000 total miles and 8,500 were for business, that's about 71% business use. You'd multiply all your car expenses (gas, insurance, repairs, etc.) by 71% to find your deduction. The first year you use a car for business is crucial because it locks you into either standard mileage or actual expenses for the life of that vehicle. If you choose actual expenses the first year, you can't switch to standard mileage later!

Don't forget that you need to have good documentation regardless of which method you choose for Schedule C. The IRS specifically looks for: 1) Mileage logs with dates and purpose 2) Odometer readings (beginning/end of year) 3) Total miles driven for the year (personal + business) 4) Receipts if using actual expenses I got audited on my Schedule C a few years back and they specifically went after my mileage deduction. I had a decent log but was missing some details. They disallowed about 40% of my claimed miles because I couldn't prove business purpose for every trip.