Door Dash, Grub Hub, Uber Eats, Postmates Tax Deductions
Tax Deductions for Doordash Drivers
As a Doordash driver, you are eligible for various tax deductions as a self-employed individual. Here are the key deductions you can claim:
Mileage or Car Expenses: Deduct non-commuting business mileage, or track vehicle expenses such as gas, maintenance, car payments, insurance, etc. Deduct either standard mileage rate or itemized car expenses, not both.
Phone & Service Bills: Deduct a portion of your phone and related expenses if used for work purposes. Estimate work usage based on phone records or apps like Screen Time.
Hot Bags, Blankets & Courier Backpacks: Deduct expenses for work-related gear used for deliveries, like insulated bags and blankets.
Tolls: Deduct toll fees paid while driving for Doordash, if not already reimbursed by the company.
Parking: Deduct parking fees paid while working. Note that parking tickets and traffic violations are not deductible.
Inspections: Deduct expenses for background checks, vehicle inspections, or similar requirements for your work.
Roadside Assistance: Deduct fees for roadside assistance programs based on the percentage used for work-related purposes.
Health Insurance: Deduct health insurance premiums if you meet the IRS requirements for self-employed individuals.
Tools and Services: Deduct costs of tools and services used for business purposes, such as mileage and expense tracking apps like Everlance Premium.
It's important to keep accurate records of these deductions using a mileage and expense tracking app. When claiming deductions during tax time, report them on the appropriate IRS forms and schedules, ensuring proper categorization and documentation. While this list provides a general overview, it's advisable to consult a tax professional to ensure compliance with tax regulations and to maximize savings through optimal deduction strategies.
Written by Paul Moon on 2023-11-05. Find more articles at Paul Moon's Hive Blog.
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