Most Doordash delivery contractors use their personal vehicle to deliver meals and merchandise. Those who do can get a significant tax write-off from tracking and deducting car expenses on their tax return. Unfortunately, too many people either don’t know they can write off their vehicle expenses or mistakenly believe they can’t do so. That mistake …
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 …
You may have noticed some things are different tax-wise when it comes to delivering for Doordash. Dashers don’t get a Door Dash W2, and the form you do get is very different. How does this all work? Why did you get a 1099 form instead of a W2? What are we supposed to do with …
There are two parts of the income tax puzzle for independent contractors in the gig economy: Determining your taxable income for your business Including your business income with other income to determine your income tax bill A lot of it can be overwhelming. It can be more so when you throw in the whole self-employment …
If you’ve been looking into information about taxes for gig workers (Doordash, Instacart, Uber, Lyft, Grubhub, etc.), you may have noticed this ugly phrase pop up: Self-Employment tax. The first time you see that phrase can throw you for a loop. Why am I being taxed for being self-employed? How does that seem fair? It …
illustration of self employed delviery contractor surfing on a Form 1040
Business information section of Schedule C for 2020
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 …
As you may know, the IRS lets you choose between actual expenses and the standard mileage allowance when claiming car expenses as a gig worker. It’s one or the other. You can’t do both. However, there are three exceptions you may be unaware of. We’ll examine three car-related expenses and why you can claim them …
As an independent contractor in the gig economy (Doordash, Uber Eats, Instacart, Lyft, etc.), the IRS lets you choose how to write off your car expenses. You can either claim the actual cost of driving, or claim a standard mileage allowance (a flat rate per mile driven). How do you know which is better? How …
It’s tax time, and you didn’t track your miles as an independent contractor delivering for Doordash, Grubhub, Uber Eats, Instacart, or others. Is it time to panic? Maybe you didn’t know or think you needed to. Or perhaps you didn’t realize you CAN claim your miles even when taking a standard deduction. All you know …
The IRS allows you to claim your car expenses if you drive for your deliveries as an independent contractor (or for rideshare trips). Whether you claim the standard mileage rate or use the actual expense method, you must have written evidence of your business miles. Another article discussed how to track miles for gig economy …
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. Delivery contractors in the gig economy put hundreds, if not thousands, of miles on their cars. At the …
For those of us using our cars for gig economy delivery, our car expenses are usually the most significant expense item on our tax returns. How does the car expense thing work for delivery drivers? What does it mean when we can claim either miles or actual expenses? We’ll talk about how it works to …
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 …