DoorDash drivers can deduct miles driven from your home to the first pickup, between deliveries, and back home. Make sure to keep detailed, accurate records by leveraging a mileage tracker or printable mileage log

Yes, as a Dasher you can deduct vehicle expenses including gas, repairs, maintenance, insurance, and depreciation attributable to your delivery mileage. You have two options for claiming these car expenses - the standard mileage deduction or the actual expense method. Most use the standard mileage deduction, but this is unique to each dasher. Dashers can estimate which method would be better with Everlance's free standard vs actual mileage deduction calculator

Keep a mileage log with date, purpose, start location, destinations, and total miles for every DoorDash trip. This can be done by hand on paper, or with a mileage tracking app for DoorDash such as Everlance.

No, DoorDash earnings and deductions are reported on Schedule C just like other self-employment income. The 1099 forms verify your earnings to the IRS.

Yes, the cost of hot bags, insulated cups, snacks or bottle water purchased for DoorDash deliveries are deductible business expenses. Make sure to keep receipts for documentation! To learn more about the top deductions Dashers claim, check out our top DoorDash tax deductions guide

Review a typical monthly bill and categorize the percentage of use that was for DoorDash vs personal. Alternatively, track time in the DoorDash app vs total phone time to derive percentage.

Yes, all tips you receive from DoorDash deliveries are considered taxable income. Be sure to accurately report the full amount of tips when filing.

If your total earnings are over $600, DoorDash will send a 1099-MISC. For over $20,000 in earnings and 200+ rides, they will send a 1099-K.

The IRS offers free taxpayer resources online, such as the Self-Employed Individuals Tax Center. Consider working with a tax professional experienced with rideshare drivers to maximize deductions and avoid mistakes. Apps like Everlance also provide education for help throughout the year to prepare for tax time.

Use a mileage tracking app like Everlance to assign drives to specific companies like DoorDash. Or use a manual log with detailed notes on provider for each trip. Thanks to the partnership between DoorDash and Everlance, Dashers get 20% off Everlance Premium products. Follow the link for more details: Mileage Tracking for DoorDash | Everlance

The IRS understands it costs money to run your business. They don’t want to tax your revenue, just your profit. What this means is, any expenses you incur to run your business can be deducted from your income, to show that bottom line profit. Mileage is typically the biggest deduction for DoorDash drivers, however, expenses such as hot bags, tolls, insurance, and even your DoorDash Mileage Tracking subscription can be tax deductible. To learn more, check out our guide on the top deductions for Dashers.

Most drivers need to pay quarterly estimated taxes to avoid underpayment penalties. Use Form 1040-ES to calculate and pay estimates on Schedule C earnings based on prior year amounts, or check out Everlance’s easy to use 1099 tax calculator.

Yes, lack of detailed mileage logs makes audit risk more likely. Drivers should keep precise records like date, purpose, miles, and addresses for every business trip to validate deductions.

Contemporaneous mileage logs separate all business and personal use clearly. Lacking evidence makes justifying deductions difficult. GPS location history also helps prove driving for work.

Yes, tolls, parking fees and other similar driving expenses can be deducted. Keep receipts and tie expenses to specific DoorDash deliveries in records.

Keep tax returns, mileage logs, and expense receipts for at least 6 years after filing to be safe in case of an audit. The statute of limitations for the IRS is typically 3-6 years. Everlance provides your mileage logs for you as long as you have an account.

We see many mistakes when it comes to mileage deductions including: Not keeping detailed logs, deducting total miles instead of just business miles, including commuting miles, and missing trip segments are common errors that reduce deductions.

Yes, apps like Everlance are great for Dashers to automatically record your mileage while working without any manual logging needed. This simplifies logging, without having to remember to stop and start, and provides IRS compliant exports at the end of each year to protect Dashers in the event of an audit.

Mileage and driving deductions are very similar between delivery and rideshare apps. Rideshare may have slightly higher mileage while food delivery has more incremental supplies.

Review delivery history in the DoorDash app. Recreate trips in mileage tracking apps. Estimate using typical mileage for stores. But precise logs are always recommended.