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Tax deduction for independent contractor/consultant travel expenses

by Ken, Window Shopper

  • Created: February 24, 2010, 2:41 pm
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5 comments

I am an independent contractor/consultant working for a company who has a contract with the Federal Government.  I bill the company on an hourly basis.

I am considered self-employed.

I am assigned by the company who pays me an hourly billing amount to perform services at a Federal Government Agency building.

I am trying to determine, since I am not an employee, if the mileage to the  Federal Government Agency building that I go to each day is deductible as an expense on my Federal Tax Return.  I have searched the IRS.Gov site and found no information on this question.

Tags: Discuss Popular Topics, Filing and Paying Taxes
‹ How to File tax return online? Mileage rate ›

BizResearcher | Window Shopper | 6/29/2010 - 8:46 am

If the person goes to the same job site every day, that is considered commuter miles and is not tax deductible, just like an employee driving to their office or store every day. However, if they drive to a variety of locations as part of their job as an independent contractor, then it is deductible. Seems strange, I know, but that's the way the IRS handles mileage.

mrhelpful | Contributor | 6/24/2010 - 8:24 pm

why is the mileage rate different dependent on the type of business? Vehicle operating costs (which mileage is supposed to represent right?) are the same irrespective of industry so why the different rate?

cgoldman | Performer | 5/25/2010 - 2:47 pm

Here is the standard mileage rate (Applicable period 2010)   Business- 50 (rates in cents/per mile) Medical and Moving- 16.5 (rates in cents/per mile)  

cmiller08 | Creator | 2/24/2010 - 3:54 pm

If you travel to the company first, then go to the federal govt. Building, then you can deduct the miles between the company and the federal building. If you don't and the contract with the federal building is considered a temporary work location (the job will last a year or less) then the miles are deductible only if the jobsite is outside of the metropolitan area where you live (metropolitan area is generally the area within the city limits and the suburbs that are considered part of that metro area. I know this sounds a little confusing, but I got it out of IRS Publication 17, straight from the IRS!) You can order a free copy of this at irs.gov, plus they have a lot of other useful publications for every type of taxpayer. Hope this helps at least a little!

Ken | Window Shopper | 2/25/2010 - 5:48 pm

Show Replied Text…
If you travel to the company first, then go to the federal govt. Building, then you can deduct the miles between the company and the federal building. If you don't and the contract with the federal building is considered a temporary work location (the job will last a year or less) then the miles are deductible only if the jobsite is outside of the metropolitan area where you live (metropolitan area is generally the area within the city limits and the suburbs that are considered part of that metro area. I know this sounds a little confusing, but I got it out of IRS Publication 17, straight from the IRS!) You can order a free copy of this at irs.gov, plus they have a lot of other useful publications for every type of taxpayer. Hope this helps at least a little!
Thank you.