![]() Second, it's good to know both the mileage and actual expense deduction so you can know which is best for you. First, you need to know how many business miles you drove to determine the business percentage. Should I track miles if using the actual expense method instead of mileage? Whether you drove 10 miles or 10,000, you can write it off. There is no minimum mileage amount required before claiming miles. There's a section in Schedule C where you can enter your total automobile expenses. This means you can claim your business miles regardless of whether you itemize or take the standard deduction. itemized.Īs an independent contractor, you write off business expenses on form Schedule C, not as a personal tax deduction. Yes, because this has nothing to do with standard vs. The Delivery Driver's Tax Information Series Disclaimer Do I need to track miles if I don't have enough deductions to itemize? For advice relative to your personal tax situation, you should seek guidance from a tax professional who is familiar with independent contractor taxes in your area. The purpose is to inform and educate about how taxes work. We'll link to other articles where appropriate, and at the end, we have a list of all articles in the series.įinally, this is not tax advice. For that reason, this is part of a more comprehensive series on gig worker taxes. It's impossible to cover it all and do it well in one article. There are a lot of aspects related to delivery driver taxes. Therefore, many examples will be related to food delivery companies like Grubhub, Shipt, Amazon Flex, DeliverThat, and many larger companies. You should seek out a tax professional who can help you with your locality and the related taxes.ĮntreCourier is mainly about the business side of delivery work in the gig economy. Because there are so many state and local governments, we don't dive into local or state taxes. Other countries have their own tax laws that may or may not be similar. This article is about how how to track mileage in the United States. What miles can you track and claim as a business expense?.What to look for in a good GPS mileage tracking app.Do you need a written log or can you use a GPS app?.What does the IRS require for a mileage record?.Should I track miles if I'm claiming actual expenses instead of mileage?. ![]() Should I track miles if I'm only taking the standard deduction (and not itemizing)?.We'll talk about how to track miles for Doordash, Uber Eats, Uber, Lyft, Instacart, and all the other gig economy apps: At the standard mileage rate of 62.5 cents per mile (for the second half of 2022), that lets you knock a lot of money off your tax bill.įailure to track miles can be an expensive mistake. If you drive as an independent contractor for food delivery apps like Doordash, Uber Eats, Grubhub, Instacart, or rideshare companies like Uber and Lyft and so many others, tracking miles makes a HUGE difference in your tax bill.ĭelivery contractors in the gig economy put hundreds, if not thousands, of miles on their cars.
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