Key Tax Deductions for DoorDash Taxes on Drivers
You can deduct certain business costs to lower your assessable wage as a self-employed person. Here are a few standard findings accessible to DoorDash drivers:
Mileage and vehicle-related expenses: You can deduct the miles you drive for DoorDash deliveries. In 2023, the IRS standard mileage rate is 65.5 cents per mile. Alternatively, you can deduct actual vehicle expenses, such as gas, repairs, and insurance, but you can’t claim both methods — you must select the one that benefits you most.
Phone and apps: Since you use your phone for navigation and communication with customers, a portion of your phone bill is deductible. You can also deduct any costs related to the DoorDash app or other delivery apps (e.g., mapping services).
Supplies: You can deduct expenses for insulated bags, parking fees, or meals if they qualify.
Hi there! I am Sudip Sengupta, the face behind “Tfin Career”. Tfin Career is a sole proprietorship finance and consulting firm that makes complex tax and financial concepts easy to understand for everyone. With more than 21 years of experience in the field, I have noticed that people cannot make the right decisions in this field. So, I decided to create “Tfin Career” to help individuals and businesses alike. Here I urge those who are confused to make better choices. Also, it is good news for my dear clients and every visitor that I/we are going to start a training module for those who want to choose a career path in Finance and Taxation. Just follow my website.
Thank you for reading this post, don't forget to subscribe!