The standard mileage deduction is the simplest way to calculate your deduction for business travel. The 2022 standard mileage deduction is 62.5 cents per mile driven for business purposes. You can use this method to deduct mileage driven for business, moving, medical, or charitable purposes. You can't deduct your commute to work.

To use the standard mileage deduction:

1. Figure out your total business miles driven for the year.

2. Multiply your total business miles by the mileage rate.

3. Enter the total on line 5 of your Form 1040 Schedule C.

If you use the standard mileage deduction, you can't deduct your actual vehicle expenses. This includes gas, oil, repairs, tires, insurance, or depreciation.

You can switch to the standard mileage deduction in any year. You don't have to use it in the first year you're in business. You can switch back and forth between the standard mileage deduction and actual expenses. But you can't use both in the same year.

The standard mileage deduction is simple and easy to calculate. But it might not give you the biggest deduction. So, you should calculate your deduction both ways to see which gives you the larger deduction.

Here's an example:

You drove your car 10,000 miles this year. Of those miles, 5,000 were for business. You use the standard mileage deduction. Your deduction is $3,125 (5,000 x .625).

You kept track of your actual vehicle expenses. They totaled $3,000 for the year. Your deduction is $3,000.

In this case, you'd take the actual expenses deduction because it's larger.

The standard mileage deduction is the most common way to deduct your vehicle expenses on your taxes. The deduction is based on the number of miles you drove for business purposes, and you can deduct a certain number of cents per mile. The standard mileage deduction is simple and easy to calculate, but it may not give you the biggest deduction possible.

To calculate your standard mileage deduction, simply multiply the number of business miles you drove by the IRS mileage rate. For example, if you drove 1,000 business miles this year and the IRS mileage rate is 62 cents per mile, your deduction would be $620.

If you choose to deduct your actual vehicle expenses instead of taking the standard mileage deduction, you'll need to keep track of all your vehicle-related expenses, including gas, oil, repairs, tires, insurance, and depreciation. You can deduct the business portion of these expenses, which is the percentage of time you use your vehicle for business purposes. For example, if you use your vehicle 50% for business and 50% for personal use, you can deduct 50% of your vehicle expenses.

The standard mileage deduction is the easiest and most common way to deduct your vehicle expenses, but it may not give you the biggest deduction possible. If you choose to deduct your actual vehicle expenses, you'll need to keep track of all your vehicle-related expenses and calculate the business percentage of each expense.