Sometimes it’s difficult to find a place to park, especially if you drive in the city. Toll fees that you pay while you drive for Doordash are tax-deductible! Just make sure that they're not already being reimbursed to you by Doordash. You know those insulated bags and blankets that you use to keep food orders nice and warm? Yep! They are deductible as a business expense.Īgain, just be sure these are items you use for work purposes only if you’re going to deduct them from your taxes. Hot bags, blankets & Courier backpacksĪnother great tax deduction for Doordash drivers includes any hot bags, blankets or other gear you use for your deliveries. You can also use the Screen Time feature on iPhone to see the amount of time spent on work apps, like Doordash, vs. We recommend going through your phone records for a normal month and look at how much of your data/phone calls or usage occurs during your work shifts and apply the average to the rest of the year. Of course, it might be difficult to estimate how much of your phone usage is for work. But be careful-if you use these accessories for both work and personal use, you can only deduct the “work percentage.”įor example, if you use your phone for personal use 70% of the time, and work 30% of the time, you’d only be able to deduct 30% of your phone and related expenses. Phone & Service BillsĪs a Doordash driver, you can’t do your job without a phone, lots of data, and some basic accessories.įor example, a car charger and phone mount are essential as a Dasher and thus are reasonable tax deductions for Doordash drivers. A mileage tracking app, like Everlance, can help you track mileage easily and automatically and make sure you’re not missing out on any deductions! 2. With either deduction approach, you do need to keep an accurate record of the mileage you drive for work. When you use the standard mileage deduction, you also don’t have to keep track of gas and maintenance receipts in addition to your mileage log. total mileage on the vehicle.įYI: Using the mileage deduction usually means you can deduct more from your business income than you would if you had deducted all of your individual car expenses. The IRS verifies the percentage of your work-related driving based on a mileage log (that you’ll need to keep up throughout the year) to see the percentage of work-related mileage vs. For example, if you drive your car 30% of the time for work and 70% of the time for personal use, you can only deduct 30% of your overall vehicle expenses on your taxes. If you drive the same vehicle for both personal and work trips, you can only deduct the cost of the expenses for the percentage of time you’re driving the car for work. What kinds of car expenses could you deduct? Things like: You can either deduct the standard mileage rate-currently $0.655 cents per mile in 2023 -or you can itemize and deduct all of your car expenses. Keep in mind that you can’t deduct both car expenses and mileage at the same time! The IRS standard deduction rate for mileage is estimated as the average cost to use your car for work purposes. Alternatively, you can keep track of your vehicle expenses and deduct those from your taxes instead. This includes miles that you drive to your first delivery pickup, between deliveries, and back home at the end of the day. One of the best tax deductions for Doordash drivers-or any self-employed individuals-is deducting your non-commuting business mileage.
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