Part 2: Vehicle expenses

There are two methods for calculating vehicle expenses: the standard mileage rate and the actual expense method. You can use the standard mileage rate for 2023 only if:

you owned the vehicle and used the standard mileage rate for the first year you placed the vehicle in service, or

you leased the vehicle and are using the standard mileage rate for the entire lease period (except the period, if any, before 1998).

You cannot use actual expenses for a leased vehicle if you previously used the standard mileage rate for that vehicle.

If you have the option of using either the standard mileage rate or actual expense method, you should calculate your expenses both ways to find the method most beneficial to you. When completing this worksheet, fill in only the sections that apply to the method you choose.

If you were a rural mail carrier and received an equipment maintenance allowance, see the line 1 instructions.

For more information on the standard mileage rate and actual expenses, see Itemized deductions and review the 2023 IRS Publication 463, Travel, Gift and Car Expenses .