Toll Road Payment 73 is a line on Schedule C that reports tolls you paid for business use of a vehicle

Toll Road Payment 73 appears on Schedule C (Profit or Loss from Business) as a place to record tolls you paid while driving for your business. If you drove on toll roads, toll bridges, or toll tunnels as part of running a sole proprietorship, partnership, or self-employed work, this is where that expense goes. The IRS treats tolls the same way it treats gas and parking — as a deductible vehicle operating cost.

The "73" is straightforward the line number on Schedule C. It sits in the vehicle expense section, grouped with other costs like fuel, maintenance, and insurance. You only use this line if you are self-employed or own a business and drove on toll roads for business purposes. If you are an employee who paid tolls to get to work, you cannot deduct them on your personal return.

Tolls are deductible only for the miles you drove on business. If you drove on a toll road partly for personal reasons and partly for business, you must split the toll cost between the two uses and report only the business portion on Schedule C.

Key Takeaways

  • Toll Road Payment 73 is a Schedule C line where self-employed people and business owners report tolls paid for business driving.
  • You can deduct tolls only for miles driven on business, not for commuting to a regular job or personal errands.
  • Keep receipts or toll statements showing the date, location, and amount of each toll you paid.
  • If you use the standard mileage rate instead of tracking actual vehicle expenses, you do not report tolls separately — the mileage rate includes them.

Who reports tolls on Schedule C

You report tolls on Schedule C if you are self-employed or own a business and paid tolls while driving for that business. This includes sole proprietors, partners in a partnership, and LLC members who are not employees of the business. If you are an employee of a company, even if you own part of it, you cannot deduct tolls on your personal return — your employer would need to reimburse you or account for them separately.

Tolls count as business driving only when you drive for a business purpose. Examples include driving to meet a client, traveling to a job site, picking up supplies, or attending a business conference. Driving to your regular office or workplace does not count as business driving, even if you are self-employed — that is commuting. Driving on a toll road to run a personal errand, even if you own a business, is personal driving.

If you drive the same toll road for both business and personal reasons on different days, you report only the tolls from the business trips. If you drive the same toll road on a single trip that is partly business and partly personal, you must estimate what portion of the toll was for business and report only that share.

How to track and record tolls

Keep a record of every toll you pay. The best method is to save your toll receipts or statements. If you use a toll tag or transponder account (like E-ZPass, FasTrak, or a state-specific system), request a monthly or annual statement that shows each toll transaction with the date and amount. These statements are your proof if the IRS asks questions.

For each toll, write down the date, the toll road or bridge name, the amount paid, and whether it was for business or personal driving. If you drive the same toll road regularly, you can note the pattern — for example, "Tuesday and Thursday tolls are business driving to client site; Saturday tolls are personal." This makes it easier to sort them later when you prepare your return.

If you cannot find a receipt for a toll you paid, do not guess the amount. Either leave it off your return or, if you have a credit card or bank statement showing the charge, use that as your record. The IRS expects you to have documentation for every deduction you claim.

Standard mileage rate versus actual expenses

You have two ways to deduct vehicle expenses on Schedule C: the standard mileage rate or actual expenses. This choice affects whether you report tolls separately on line 73.

If you use the standard mileage rate, you multiply your business miles by the IRS rate for that year and report the total on Schedule C. The standard mileage rate already includes an allowance for tolls, so you do not report tolls separately on line 73. You straightforward count the miles and let the rate do the math. The standard mileage rate changes each year — the IRS publishes it in January.

If you use actual expenses, you track what you actually spent on gas, maintenance, insurance, depreciation, and tolls, then report each category separately. Tolls go on line 73. Actual expenses usually make sense if you drive a lot for business, use an expensive vehicle, or have high fuel costs in your state. Standard mileage usually makes sense if you drive fewer miles or want simpler record-keeping.

You must choose one method for the first year you use the vehicle for business. After that, switching between methods is possible but requires IRS approval in some cases. Once you choose, stick with it unless you have a good reason to change.

What tolls are and are not deductible

Tolls paid on roads, bridges, and tunnels are deductible. This includes highway tolls, bridge tolls, tunnel tolls, and toll roads in any state. It also includes tolls paid through a transponder account or toll tag service.

Parking fees are not tolls and do not go on line 73. Parking goes on a different line of Schedule C (usually line 27, Other Expenses). If you pay a combined toll and parking charge — for example, a toll plaza that also charges for parking — separate the two amounts and report each on its correct line.

Congestion pricing charges (like those in some cities where you pay to drive in a certain zone during peak hours) are treated as tolls and are deductible if the driving was for business.

Common mistakes to avoid

The biggest mistake is reporting tolls for commuting. If you drive on a toll road to get to your regular job or office, that is commuting, not business driving, and the tolls are not deductible — even if you are self-employed. The IRS does not allow deductions for getting to work.

Another mistake is mixing personal and business tolls without separating them. If you use a toll tag account for both business and personal driving, you must go through the statement and identify which tolls were business and which were personal. Report only the business tolls on Schedule C.

A third mistake is forgetting to keep records. If you claim tolls on your return and the IRS asks for proof, you need receipts, statements, or credit card records showing the date and amount. Without documentation, the IRS can disallow the deduction and charge you penalties and interest.

Finally, do not report tolls on line 73 if you are using the standard mileage rate. The mileage rate includes tolls, so reporting them separately would be double-counting the same expense.

Frequently Asked Questions

Can I deduct tolls if I am an employee?

No. Employees cannot deduct tolls on their personal tax return, even if they paid them to drive to work. Your employer would need to reimburse you or account for the tolls as a business expense on the company's return. If you are self-employed or own a business, you can deduct tolls for business driving.

What if I use a toll tag account for both business and personal driving?

Request a statement from the toll authority showing each transaction. Go through the statement and identify which tolls were for business trips and which were for personal trips. Report only the business tolls on line 73. Keep the statement as your record.

Do I report tolls differently if I use the standard mileage rate?

Yes. If you use the standard mileage rate, do not report tolls separately on line 73. The mileage rate includes an allowance for tolls. straightforward multiply your business miles by the rate and report the total. If you use actual expenses, report tolls on line 73.

What counts as business driving for tolls?

Business driving includes trips to meet clients, travel to job sites, picking up supplies, and attending business conferences. Commuting to a regular office or workplace does not count, even if you are self-employed. Personal errands do not count, even if you own a business.

What if I cannot find a receipt for a toll I paid?

Do not guess the amount. If you have a credit card or bank statement showing the charge, use that as your record. If you have no documentation at all, leave the toll off your return. The IRS expects proof for every deduction you claim.