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How to deduct vehicle expenses on Schedule C (2026)

Step-by-step: how a 1099 contractor reports vehicle expenses on Schedule C, including the standard mileage rate, actual expense method, and Part IV.

By MileTracker · April 18, 2026 · 9 min read

Schedule C is where you report business income and expenses as a sole proprietor or single-member LLC. Vehicle expenses are reported on Line 9, with details in Part IV. Here's how to fill it out correctly.

Step 1: Choose a method

You can deduct vehicle expenses one of two ways:

  • Standard mileage rate — multiply business miles × $0.67 (2026)
  • Actual expense method — track gas, insurance, maintenance, depreciation, etc. and deduct the business-use percentage
If you want to use the standard mileage rate, you must choose it in the first year you place the car in service. You can switch to actual expenses later, but generally not the other way around.

Step 2: Calculate business miles

Add up all your business miles for the year. This is where your mileage log matters. Export from MileTracker and the total is at the top of the PDF.

Step 3: Fill out Schedule C, Part IV

Part IV asks for total miles, business miles, commuting miles, and other miles. It also asks whether you have written evidence of your business use — your MileTracker log is that evidence.

Step 4: Report the deduction on Line 9

Multiply business miles by the standard rate. The result goes on Line 9 (Car and truck expenses).

MileTracker detects every drive in the background, lets you classify business or personal in one tap, and exports an IRS-ready PDF and CSV at tax time. Download MileTracker free on the App Store.

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