Some of the first questions people new to the field ask are "Can delivery drivers deduct mileage?" and "Can delivery drivers deduct gas?" One of the easiest tax deductions for food delivery drivers is the mileage deduction.
It can be a bit of a pain to keep track of the miles you drive for work, but this delivery driver tax write-off is always worth it at tax time.
And today, technology comes to the aid of self-employed people in countless ways when it comes to the tax return for delivery drivers. For example, some apps can track your mileage digitally, so all you have to do is hit record, so-to-speak. This Car Mileage Tax Calculator
can also save you a ton of time.
You can use the standard rate deduction to deduct mileage for your deliveries. Not every driver knows that among the many delivery driver tax deductions is mileage for trips in addition to deliveries. Mileage for taking your car to the repair shop or mileage for going to the car wash are also tax deductions for delivery drivers. Effective July 1 of 2022, the IRS increased the standard mileage rate from 58.5 cents per mile to 62.5 cents per mile.
Or, you can use the actual expenses deduction on the tax return for delivery drivers. Just add up every cost you spent on your car, for deliveries or personal use, and get a year-end total. Multiply that total by the percentage of time you used your car for work, known as the business-use percentage, to get your actual expense deduction when you go to do your delivery driver taxes.
A common delivery driver tax write-off is your cell phone. If you use a separate phone just for your work making deliveries, you can claim every cent you paid for the phone and the monthly cost of your minutes and data plan. Even if you use the phone only partially for work and the rest is personal use, you can still deduct a portion of those expenses.
Commissions and fees
With so many more options for delivery services on the market, it's a good time to be a delivery driver. Many of the newer app-based services charge drivers a commission, which they can typically deduct from their taxes. The same goes for fees drivers often have to pay to the platforms.
Knowledge is power, and when it comes to taxes and write-offs, delivery drivers need information about the company they work for.
It's no secret that take-out food is a more popular delivery item than ever. With so many more kinds of food deliveries and drivers carrying multiple deliveries at a time, the need to keep foods hot or cold has drastically increased. You can deduct the cost of things like hot bags or courier backpacks for this purpose. The same is true for many other items delivery drivers may need, such as phone chargers, a system to mount your phone or a mileage tracking app subscription.
Bike and accessories
One of the best tax deductions for delivery drivers in many cities, delivery drivers on bikes is a common sight. If you use a bike instead of a car to make your deliveries, the cost of the bike, repairs and accessories can be tax write-offs.
This can be a lifesaver for any driver, but especially for delivery drivers, whose livelihood depends on not being stranded on the side of the road. And yet, it's not a well-known delivery driver tax write-off. If you subscribe to a roadside assistance plan, you can deduct a percentage of the fee.