[dragonwriter]

> However the advantage of being self-employed is that you can deduct expenses such as fuel.

No, its not. If those expenses aren't reimbursed by your employer (which often they are), you can deduct them as a W-2 employee, as well, so there is no benefit on that point to being a 1099 contractor vs. a W-2 employee.

[toomuchtodo]

You can only deduct those expenses as a W-2 employee if you itemize vs taking the standard deduction. Most people don't itemize.