One way to save money on your taxes is by making deductions. There are some great
deductions for delivery drivers that you can claim on your tax return.
Since a car is necessary for your gig, you can write off the
miles you drive. You have two options when it comes to making the mileage deduction.
- Standard deduction: You can take a deduction for the number of miles you drive and multiply it by the IRS mileage rate to get the deduction amount. For the 2023 tax year, it’s 65.5 cents per mile. You can deduct parking fees and tolls with this option, but you can’t deduct any other car-related expenses.
- Actual expenses deduction: If you take this route, you’ll need to keep track of the miles you drive and any vehicle-related expenses, so don’t throw those receipts away. With this option, you can claim expenses such as insurance, car maintenance and repairs, car depreciation and registration fees. After adding up and calculating your vehicle-related expenses for the tax year, multiply the amount by the percentage that your car is used for business.
It’s best to use a
car mileage tax calculator to help you figure out how much to deduct.
It’s pretty important to have a cell phone when driving for Grubhub. You can deduct the costs of using a cell phone for business purposes. So if you use your cell phone for business 50% of the time, you can only deduct 50% of the bill. Or, to make things simpler, buying a cell phone and using it solely for your delivery driver
gig is best. You can deduct the total cost of the phone, your monthly bill and any phone accessories you might need, like a car charger or stand.
Customers expect their food to arrive either hot or cold, depending on the item. If you need to purchase any equipment to keep the food hot or cold, you can deduct those expenses. This includes any hot bags, coolers or courier backpacks.