Doordash drivers need to set enough money aside to cover income tax (starting at 10%), self-employment tax (15.3%), and any state or local taxes incurred due to their earnings. But there’s more to it than that. Independent contractor taxes can be a bit more involved. To help get a feel for what to save, we’ll …
As a Doordash delivery driver, you provide delivery services as a business, not as an employee. We’re technically small business owners, which has tremendous benefits for you when it comes time to file your taxes. The main benefit is what you are taxed on. Your business tax bill is based on your profits (what’s left …
illustration of self employed delviery contractor surfing on a Form 1040
Gig workers using their car for deliveries (Doordash, Uber Eats, Instacart, Grubhub, Shipt, and a host of others) get a significant tax write-off claiming mileage or actual driving costs. But is there anything else? What if you don’t drive? How do you avoid claiming things you shouldn’t? There are several tax write-offs. We’ll talk about …
Car expenses and hot bags are not tax deductions for independent contractors in the delivery space. They are business expenses. There’s an essential distinction between the two. Knowing that distinction helps you understand the difference between employee taxes and filing as a business owner. In this article, we’ll talk about the similarities and differences between …
The IRS has announced that the standard mileage rate that can be used by delivery and rideshare drivers has increased from 58.5 cents per mile to 62.5 cents per mile. The four cent per mile increase is effective July 1, 2022. This is not the first time that rates have increased. In 2008, the rate …
As a gig economy independent contractor in Delivery (Doordash, Grubhub, Uber Eats, Instacart etc) and Rideshare (Uber, Lyft, etc.), it’s hard to know what you can write off outside of miles and a few minor supplies. You may have heard other drivers tell you that you can take several hundred dollars in home office deductions. …
There’s a place on the Schedule C for meal expenses, so that must mean I can claim them as a business deduction when I’m delivering for gig apps like Doordash, Grubhub, Uber Eats, Instacart and others, right? Right? So, CAN I claim meals as a business expense or deduction while delivering these for gig apps? …
The good news is, you can save a TON of money using your bicycle, scooter, your eBike or your Motorcycle while delivering for gig companies like Grubhub, Doordash, Postmates and Uber Eats or for courier or bike messenger work. The bad news is, you can’t take the same kind of deductions. It would be awesome …
If you read much on this site, you’ll notice that I’m always telling people to track their miles and expenses. It makes a tremendous difference when tax time rolls around. But what if you don’t deliver that much? What if this is a part-time gig and expenses don’t add up to the $12,950 standard deduction? …