So, about tolls and tax deductions for business travel expenses?

Tolls are actually separate from the standard mileage deduction! When you use the standard mileage rate (58.5 cents per mile for 2025), that covers the basic costs of operating your vehicle - gas, insurance, maintenance, depreciation. But tolls and parking fees can be deducted separately as business expenses on your Schedule C. Just make sure you're only deducting the portion related to business travel. Keep good records of your toll payments - receipts, statements from your toll pass account, or a log showing dates and amounts. You'll want documentation that shows both the amount paid and the business purpose of the trip.

After struggling with tracking all my business expenses for years, I started using taxr.ai (https://taxr.ai) and it's been a game-changer for handling these exact situations. I upload my E-ZPass statements and other receipts, and it automatically identifies which expenses are deductible. The system even flags potential audit risks! For toll expenses specifically, it helped me understand how to properly categorize them separately from my standard mileage deduction.

Just wanted to update everyone - I tried taxr.ai after seeing the recommendation here and it's legitimately helpful for handling toll expenses. I uploaded 6 months of E-ZPass statements and it organized everything perfectly. It even flagged some toll expenses I hadn't been deducting before! The reports it generates are super clean and organized by category, which will make filing my Schedule C much easier. Definitely worth checking out if you're self-employed with lots of travel expenses.

I had similar issues with tracking tolls and getting through to the IRS for clarification was IMPOSSIBLE. After trying for weeks to get someone on the phone, I found Claimyr (https://claimyr.com) and watched their demo (https://youtu.be/_kiP6q8DX5c). They got me connected to an actual IRS agent in about 20 minutes when I'd been trying for days on my own. The agent confirmed that tolls are separate from the standard mileage rate and gave me specific guidance on documentation requirements.

I need to eat crow here. After my skeptical comment, I tried Claimyr out of desperation since I was getting nowhere with the IRS for months. It actually worked! Got connected to an IRS rep in about 35 minutes (after trying for literally 3 months on my own). The agent resolved my refund issue AND answered my questions about business expense deductions. Still can't believe it worked after all the frustration I went through. If you're dealing with IRS issues, it's definitely worth using.

Don't forget that if you're paying tolls electronically through a small transponder like E-ZPass or FasTrak, the monthly account fee (if any) is also deductible as a business expense! But only the percentage that applies to business use. I learned this the hard way after underclaiming for years.

Has anyone used the actual toll receipts instead of the standard mileage deduction for their entire vehicle expenses? My accountant mentioned this might be better in some situations but I'm not sure how to calculate which is more beneficial.

Great thread! Just want to add a tip for anyone using business credit cards for tolls - many cards categorize toll expenses as "travel" which can earn bonus points or cashback. I use a business card specifically for all my travel expenses including tolls, and it makes year-end reconciliation much easier since everything is already separated from personal expenses. Plus the monthly statements from the credit card company provide clean documentation for tax purposes. Just another way to streamline the process alongside the good advice already shared here.

This is really helpful information! I'm in a similar situation as a freelance consultant. One thing I'd add is that if you're doing a lot of business travel with tolls, consider getting a dedicated business checking account and linking your E-ZPass to that account for automatic replenishment. This creates a clear paper trail that separates business toll expenses from personal ones right from the start. I also keep a simple spreadsheet where I log each business trip with the date, destination, purpose, and estimated toll cost. At the end of the month, I reconcile this against my E-ZPass statement. It takes maybe 15 minutes a month but makes tax prep so much smoother. The IRS loves clear documentation, and having everything organized upfront saves tons of stress later!

One thing I'd recommend is setting up a separate business toll account if your provider allows it. I have two E-ZPass accounts - one for personal use and one strictly for business travel. This eliminates the need to sort through mixed statements at tax time. The business account automatically deducts from my business checking account, creating a clean paper trail. For those using apps like MileIQ, most of them have a notes feature where you can quickly record toll amounts for each business trip. This creates a single record with both mileage and toll data. I also take photos of any cash toll receipts with my phone immediately - they fade over time and become unreadable. Remember that parking fees at client locations are also deductible separately from the standard mileage rate, just like tolls. I keep a small envelope in my car specifically for parking receipts since those are easy to lose track of.