IRS Mileage Deduction Calculator
See how much you could save — and which deduction method wins for your situation.
Two Ways to Deduct Your Vehicle
The IRS lets 1099 workers deduct vehicle expenses using one of two methods. Understanding both is the key to maximizing your tax savings.
Standard Mileage Rate
- •Multiply your business miles by the IRS rate ($0.70/mile for 2025)
- •Simple — no receipts needed for the car itself
- •Just track your miles — that's it
Actual Expense Method
- •Track ALL vehicle costs: gas, insurance, car payment, maintenance, repairs, tires, registration, depreciation, tolls, parking
- •Multiply total costs by your business use percentage
- •More paperwork, but can be a bigger deduction if your car costs are high
📊 What is Business Use %?
Business miles ÷ Total miles driven = Business Use %
The IRS requires you to track this — Lifeline does it automatically.
🧠 Which method is better?
It depends on your actual car costs vs how many miles you drive.
The SMART move: calculate both and pick the higher deduction.
This is exactly what Lifeline does for you — automatically.
Your Driving
2025 IRS Standard Mileage Rate
$0.70 per mile
Your Monthly Vehicle Costs
Enter your estimated monthly expenses. We'll annualize them and apply your business use %.
Side-by-Side Comparison
16,560 business miles × $0.70
$11,592
$15,180 × 92% business use
$13,966
Actual Expenses wins — you save $2,374 more!
Lifeline calculates both methods automatically and recommends the best one for your situation.
