Door Dash, Grub Hub, Uber Eats, Postmates Tax Deductions

1 year ago
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Mileage or Car Expenses:

Mileage Deduction: You can deduct business-related mileage, including trips to pick up deliveries, travel between deliveries, and the trip back home. The IRS standard

mileage rate (in 2023, it's $0.655 per mile) represents the average cost of using your car for work. Alternatively, you can itemize and deduct specific car expenses like

gas, maintenance, car payments, insurance, and registration fees. Remember, you can't deduct both mileage and individual car expenses simultaneously. Keep a mileage log to

track work-related driving.
Phone & Service Bills:

Deduct a portion of your phone and related expenses if used for work purposes. Determine the work percentage based on phone records, work app usage, or other methods.

Accessories like car chargers and mounts used for work are also deductible, but only for the work-related percentage.
Hot Bags, Blankets & Courier Backpacks:

Deduct expenses for gear used in your deliveries, such as hot bags, blankets, or insulated bags. These items must be used exclusively for work to qualify as deductions.
Tolls:

Toll fees paid during work-related trips are tax-deductible. Ensure that Doordash does not already reimburse these tolls.
Parking:

Deduct parking fees paid while working. However, parking tickets and other traffic violations are not deductible because they result from inappropriate driving, not direct

work-related activities.
Inspections:

Expenses related to work requirements, such as background checks and vehicle inspections, are tax-deductible as long as they are necessary for your job.
Roadside Assistance:

Fees for roadside assistance programs like AAA are tax-deductible. Deduct only the portion of the expense used for work-related purposes.
Health Insurance:

If you pay for your health insurance, the premiums can be tax-deductible for self-employed individuals who meet IRS requirements. Consult IRS guidelines to ensure

eligibility.
Tools and Services:

Deduct costs for tools and services used for business purposes. For example, mileage and expense tracking apps are fully tax-deductible. Any other apps, tools, or services

with a one-time fee or annual subscription that you use for your business are also deductible.
Remember, maintaining detailed and accurate records of these expenses is crucial. Using a dedicated mileage and expense tracking app can help you

automatically log deductible miles and expenses, making it easier to claim these deductions during tax season. Additionally, consulting a tax professional ensures that you

are maximizing your deductions and complying with tax regulations.

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