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Car payments for 1099 workers

$300-$800/mo

Can You Write Off Car Payments for 1099 Workers?

Short answer: Not directly: you deduct mileage, or depreciation plus the business share of interest, never the payment amount.

Use the standard mileage rate (72.5 cents a mile for 2026) or actual costs times business-use percentage, and keep a log of each trip.

Records to keep: Keep receipts, 1099s or W-2s, a mileage log, and a note of the business purpose. W-2 employees should ask about employer reimbursement.