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How many cents per mile can you write off for DoorDash?

How many cents per mile can you write off for DoorDash?

DoorDash is a popular food delivery platform that allows individuals to earn money by delivering meals from local restaurants to customers’ doorsteps. As an independent contractor for DoorDash, you are responsible for your own expenses, including vehicle maintenance and fuel costs. One question that often arises for DoorDash drivers is how many cents per mile can be written off for tax purposes.

The Internal Revenue Service (IRS) allows self-employed individuals, including DoorDash drivers, to deduct certain vehicle expenses. One of the methods commonly used to calculate these deductions is the standard mileage rate. For the tax year 2021, the standard mileage rate for business use of a vehicle is 56 cents per mile.

To determine the total amount you can write off for your DoorDash business mileage, you need to keep track of the number of miles driven exclusively for work purposes. This would include the distance traveled from the moment you accept an order until the delivery is completed. Keep in mind that personal miles, such as commuting to and from your home, are not deductible.

FAQs about DoorDash mileage deductions

1. Can I claim mileage deductions if I use a scooter or bicycle for deliveries?
Using a scooter or bicycle for your DoorDash deliveries is becoming increasingly popular, and you can still claim deductions for the mileage you travel using these alternative modes of transportation.

2. How can I accurately track my mileage for tax purposes?
There are various mileage tracking apps available for smartphones that can help you accurately track the number of miles you drive for work. These apps typically use GPS technology to automatically record the distance traveled.

3. Can I write off toll fees and parking expenses in addition to mileage?
Yes, toll fees and parking expenses incurred during your DoorDash deliveries can be claimed as separate deductions in addition to the mileage deduction. Be sure to keep all relevant receipts and records to support your claims.

4. What happens if I drive for both personal and business purposes?
If you use your vehicle for both personal and business purposes, you can only deduct the mileage specifically related to your DoorDash deliveries. Keeping a well-documented mileage log can help substantiate your business-related mileage.

5. Are there any restrictions on claiming mileage deductions?
Yes, there are certain restrictions on claiming mileage deductions. For example, if you are already receiving reimbursement for your mileage from DoorDash, you cannot double-dip and claim the same expenses as deductions on your tax return.

6. Do I need to keep a detailed record of each delivery I make?
While it’s not necessary to record every single delivery, it’s advisable to hold on to any documentation related to significant deliveries or mileage discrepancies. This can include timestamps, order details, and customer addresses.

7. Can I claim mileage deductions if I also work for other delivery services?
If you work for multiple delivery services, such as Uber Eats or Postmates, you can generally claim mileage deductions for all the platforms you work for. Keep track of your mileage separately for each service to ensure accurate deductions.

8. Are there any exceptions for claiming mileage deductions?
There are some exceptions to claiming mileage deductions. For instance, if you are already deducting vehicle expenses through the actual expense method (e.g., depreciation, maintenance costs), you cannot claim the standard mileage rate.

9. Can I claim mileage deductions if I lease a car for DoorDash deliveries?
Yes, if you lease a vehicle specifically for DoorDash deliveries, you can still claim mileage deductions based on the standard mileage rate. However, if you choose to deduct your lease payments as an actual expense, you cannot additionally claim the mileage deduction.

10. Is it necessary to keep track of both business and personal mileage?
While it’s not mandatory to track personal mileage separately, it can be helpful for tax purposes. By knowing the total mileage driven on your vehicle and the business mileage, you can accurately calculate the percentage of business use and claim appropriate deductions.

11. Can I deduct mileage if I have multiple jobs?
If you have multiple jobs and use your vehicle for business purposes in each job, you can claim mileage deductions for each job. Simply keep a record of the miles driven for each business-related activity.

12. Should I consult a tax professional for guidance on mileage deductions?
If you have complex tax situations, multiple sources of income, or any doubts about claiming mileage deductions, it’s advisable to consult a qualified tax professional. They can help ensure you maximize your deductions while staying compliant with the IRS guidelines.

Remember, it’s important to maintain accurate records of your mileage and any associated expenses to support your deductions in case of an IRS audit. Keeping organized and utilizing technology to simplify the process can go a long way in ensuring you receive the maximum tax benefits for your DoorDash business.

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