Top 5 Tax Write Offs for Doordash, Delivery & Uber Drivers (2023)
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- Опубліковано 23 тра 2024
- Let’s look at the top tax write-offs for Doordash, Delivery & Uber drivers for 2023. Now, if you identify with any of these roles then that means you are likely an independent contractor.
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This is great because as an independent contractor, you are allowed to write off a lot of business expenses like your car, and of course, the more tax write-offs or deductions you have, the less you will have to pay in taxes.
So, when you become an independent contractor, you are pretty much self-employed, so your tax situation becomes a little bit more advanced than a typical W2 employee.
Because you don’t have an employer who will withhold or pay any taxes for you. So the big tax problem for most self-employed people is around FICA taxes.
Timecodes
Intro (0:00)
What Taxes are Independent Contracts Required to Pay? (1:07)
What Tax Forms Do You Need to File? (3:34)
Top Tax Write-Offs for Doordash & Delivery Drivers (4:25)
Write Off #1 (5:20)
Write Off #2 (7:00)
Write Off #3 (7:45)
Write Off #4 (8:27)
Write Off #5 (9:08)
BONUS (9:45)
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Disclaimer: The information provided in this video is for informational purposes only and is not meant to take the place of professional legal, accounting, or financial advice. If you have any legal questions about this video or the subjects discussed, or any other legal matter, you should consult with an attorney or tax professional in your jurisdiction (i.e. where you live).
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1. Mileage 2. Tolls 3. Cell phone 4. Health Insurance 5. Supplies
Subscribed just for putting in shortcuts, much appreciated, keep it up!
Thank you I truly appreciate This Gem 💎
So here is an idea. You start your shift with a full gas tank. When you finish your shift, fill back up. Then enter that as your gas cost for the day. That way you know exactly what your fuel cost was that day. Or do it weekly if you do not use your car for personal use.
Or use an app that u log into once u head out and it keeps track of all ur miles. When ur done u go back in the app and stop it. This is more accurate cuznu can stop n start it at anytime and it continues at the mileage u last stopped at. With ur method u gotta keep in mind that if something came up like a change of plan n u stop working for like an hour to do something else...... u doing miles that technically shouldn't count towards the work miles u putting in during deliveries. Get what I mean? So say u do deliveries for 3 hrs driving making stops then u stop working n do personal errands or whatever then go back to work. At end of day when u go fill up to do your fuel count it really is not genuinely correct as it wasn't all work related
@@42caw unless you drive something with horrendous gas mileage like an SUV or a truck, the standard mileage deduction will likely allow you to deduct more than what you actually spent.
Imagine actually telling the IRS only the gas you used for work. Lol.
Here's my idea....use a separate credit card for gas used for business. I use your suggestion to log ACTUAL BUSINESS MILES which I can prove....
how can you get deduction with ebike thats just for this?
Awesome video.
Thanks for the information.
Excellent video.
Great video!
Solid video
Thank you for the info
No problem! I assume you are a driver?
@@LYFEAccounting Yes, it’s my first year doing this type of thing so I’m learning everything!
Thanks for the information. What would the circumstances have to be for a delivery driver to claim per diem? Would they have to be spending the night out of town away from home to qualify? Also what about the tax breaks for the RV Transport industry who flat tow their own vehicle behind a motorhome? Even though the tow car isn't being driven, there is still a lot of wear and tear on the vehicle, especially on the tires. Would a person be allowed to claim the standard milage deduction on their work vehicle that is being towed behind the motorhome? I'll be waiting for your response..thanks
thank you
What about the quarterly estimated tax payments?? Do we just file those using in-app earnings reports? I'm new to doordash -and the tax world in general 😅
This guy wrote, directed and acted every part! Definitely coming back when I'm doing my taxes. lol
What's the video link for the independent contractor retirement plan
I plan to start an LLC soon for a transport business. So I’m able to work under my EIN/LLC for DD/UE?
Great video. How much should we put aside for quarterly taxes?
Did u not watch the video lol?
This is a great review of available deductions, but I have a question. I am a rideshare/gig economy, driver across many of the apps and I am paid via 1099, but I don’t use an EIN. You mentioned deductions for a personal vehicle, which is great like tires cost of gas and repairs maintenance. I recently had to spend a lot of money on repairs so that will be deductible. However, I was hoping that you could cover whether the cost of a rental I’ve been using would also be considered a deduction. The rental has been 100% for business related activities.
I'm in atlanta
If you use the standard mileage rate in year 1, can you use the actual mileage rate in year 2 or you must use one rate and have to continue using the same method every year?
Great video! Just had a question. I do Uber eats delivery with a bicycle/scooter. Will the mileage deduction .56 cents/mile also apply to delivering with bicycle/scooters or just with cars?
Just gas vehicle I think
Vvvv
Can I use the change oil and the maintenance to my car ? To the tax
How do we calculate the percentage of the phone bill that’s counts
Question. Uber eats allows this, what if I am delivering as a delagate under someone elses account. They do the taxes but the miles were on my car, they don't have a car. Can they claim my miles? Very good video, thank you👍
Is there a video on showing what info goes where on the tax forms?
Is it possible to write off your whole car as a door dash driver
Can I deduct car insurance if I use standard deduction?
What about moving violations while driving to pick up a passenger for Lyft?
so according to the miles DD sent me, my deductions is more than i owe in taxes. like way more. so i took a financial loss with DD last year
Not a financial loss. Did you make more than you spent? Cause if you did, then it's not a loss. It's just a tax write off. If your write off is bigger than what you owe, then you owe nothing and may actually get money back. Which is a plus. So, you earned more and got more back from the government. How's that a loss?
In 2021 you get to claim .56cents for every mile driven for DD
So say you drove 100miles in a day
Your entitled to $56 bucks back in mileage reimbursement!!
Just think of the Mileage reimbursement that Walmart and UPS drivers get!! The Mileage reimbursement is a deduction for the drivers not the Corporations!!
And those Corporations are paying for the Gas ⛽️ insurance etc
It pays to Drive!!
How does this make sense ....
@@amerikanviking no. i made less than spent
@@marianolasco1151 if u can’t comprehend i cant help u
Let's say 75% of the miles on my car are for business purposes and I want to use the Actual Expenses method for eligible expenses. Would it be correct to multiple my eligible expenses by .75 to determine the business use value? (Assuming I'm tracking my business miles as justification for business use.)
See my suggestion in comments
Thank you for information. But my concern is how much I have to pay for my taxes. I am praying that I don’t have to pay a lot. If I do I will pay little by little I can’t pay all at once if it more than 2,000.00.
What if I'm on disability and get social security Medical insurance do I still have to pay into the Social security
When does the business mileage technically begin? From the time I leave to dash to the time that I get home?
Yeaa
Yes, as long as your home is considered to be your dedicated home office
I love working for Uber Eats I started doing it full time in 2022 so I'm a little nervous but I feel like my expenses are high so it should even out or I get a little credit
how did that worked out?, its been a year
How do you report two vehicles if you used them to do Doordash and Uber?
Is there a tax deduction for people who ride Uber as a passenger back and forth to work. I had a driver tell me that?
Can we turn doordash into a business with tax if number and not use or ssn?
Can we write off salon expenses or clothing as a door dash driver
So if on my nec says 2500 I only pay 2500 for taxes without including deductions?
tips are taxed too?
Not gonna lie, I'm considering doing this for a loss to offset my W2 taxes
I’m scared will I owe and how much?? Any possible way after deductions that I’ll get any money back
What if already paid self-employed tax? Could I re-file again LLC as a S-corporation ?
Is it possible to do the standard mileage rate AND the actual expense method. ? Or is it just 1 or the other
1 or the other
Is this one or the other forever, or can you decide which one you want to take each year you file?
But what if I also work for W2 my fica taxes is calculated right?
Can you only deduct parking & tolls if you use the “actual” method to calculate taxes?
No you can deduct that even if you use the standard milage rate option. It's separate from vehicle expenses. :)
Will this work in California....
Great videos.
Can uber drivers take full advantage of tax code 179? Assuming of course the vehicle is strictly for business.
I would say yes. If you are operating under an LLC that you have created and the vehicle is registered/titled and insured under the name of your LLC. Also assuming the vehicle weighs more than 6,000 pounds and less than 14,000 pounds. *this is not legal advice. I’m not an attorney.*
@@jasonrock5220 delivery services do not allow you to work under an llc
@@carlos23mendoza really? Why not? Aren't you working for urself? Why wouldn't u be able to operate as a llc business entity?
@@DaGenius86 they dont have an option for it when signing up
Can I use my car insurance as a write off?My insurance increased significantly after adding ride share.
Yes, every single payment.
Where do you find all the miles you’ve used for the year on door dash?
You write down yourself at the end of the day so when tax season comes, you write it off.
So with tax write #5 supplies: i can write off my bike under supplies?
Do we even get a return? Do we get any money back?
I live in California is this information right for me
What if the Tax summary in the app amount doesnt match the 1099 amount for the year
I work a full time job and have a tax shelter with my job. Can I also open a Solo 401k for my small business that I recently opened?
Yes
can you get deduction from using Ebike??
Is documentation needed for the 5 write off you mentioned? If so, what kind?
Well you want to document as much as you can, especially mileage. There is no specific documentation process, so there are many ways to do it. You just want to think in the mindset of "how can I prove this write off?"
It may be as simple as keeping a receipt or invoice
Can we write off the miles of us driving back home from Uber with the app off or non receiving?
Yep
How do I start tracking stuff like miles and $ amounts of gas after not doing so for almost 3 months since beginning? So that I can use those values to write off
I have had to purchase extra gas for sure, each week
1:09
Hold the phone.. So I need to open a LLC to take advantage of most of this?!
Is there any benefits for tax deductions for social security disabilitity.
If you get a large amount of social security and need write offs then yes
The IRS has raised the amount since then so instead of .56 it's now .625 🥳
Amount of what exactly?
@@metaphor239 $ per mile!
Only for half the year
@@ezeraeham8589 $6.25 per mile now?
From July 2022. Before it was the .56
Can I write off uber booking fees, Uber service fee/other adjustments, Airport and city fees collected? I am doing my own taxes with TurboTax and I am filing self employed. I noticed on "misc expenses" section. It asked do I pay all these fees. I'm asking cause when I plugged the information in, It gave me a big boost in my refund. I made nearly $19K last year with uber but uber took $8K in fees😭 This my first year filing self employment so I guess I'm nervous that I am doing it wrong.
What if I use the millage deduction on taxes, but the deductions are greater than what you earned? How does that work? Do you get money back or you just owe nothing in taxes?
How much did you make and how many miles did you drive, so you’re saying you drive a lot more miles than 1dollar per mile?
I made 36,000 and just went with the mileage deduction and still owed 3,000 at tax season…should I have gone with actual expenses? Should I redo them? I have receipts on my bank account
It’s supposed to lower your taxes not get rid of them. 3000 seems right
Was this your gross or net income?
@@Chris-vz2kv well so I just did them this year with this same income on TurboTax and only owe like $1600…low audit chance so I’m sending her through lol best of luck
@@WideHarryCockso you basically took 36,000 miles as well?
what about delivery bikers?? this seems to cater only to people using cars. any info for delivery bikers?
You can most likely write off the whole bike (if you bought it that year), any bags you buy for transporting food or whatever, etc. It's not really rocket science. If you use it for your "business", you can probably write it off. You just gotta keep track of it all.
Can i do my taxes with you or get a consultation
❤ 7:18 7:21
Do you guys have a business address where we can go and do our taxes?
We can do a virtual appointment
lyfetaxes.com
TIPS i got from customer will be included in income tax or not ???
Tips received are considered to be taxable income
Is either or? Can't write off actual expenses and mileage?
H and r block. Did not let me claim anything but mileage and gas And I had to. Pay for Medicare. Has anyone else does this
can we write off the miles driving back home?
I dont think so, only the Miles driven when you're activity taking orders. I could be wrong, but this is a safe way to go
Yes
So I can write off my entire lease payment on my EV for $590 x 12 months?
If you write off miles driven than you can’t do that.
After watching this video, I recommend lyfe accounting
Can I write off dental insurance??
Google says yes
Can I write all of these off without an LLC ?
Yes , soul proprietor its called
I had worked as a paper boy for 3-4 years didn't how that worked. The IRS started hunting me, i quit started a new job i didn't get tax returns for a few years.😂😤😡
can I deduction my business car insurance & car premium ?
Yes
@@LYFEAccounting if I use rental car to door dash can I write off the miles or do I have to own the car.
@@elijahdavis6618 write off the rental payments.
I can write off FICA taxes???
The employer portion of FICA is a deductible expense for independent contractors
@@LYFEAccounting so we can deduct 7.5%??
@@LYFEAccounting I drive for DoorDash bro from aug 11 to dec 1 and now they say I should pay 9060 in tax is that possible first time doing DoorDash
@@GANGSTAlKINGjamaicanboy how much did you make 16.8k ?
Write offs or deductions?
37k is tax like $5661yet IRS put a cap on the mileage and you cant write it off. Subsequently you payed $4000 in gas and car maintenance and driving insurance. Total like $20k in operational cost not much left but $17k with rent and other expenses. All year working for $10k at 40 to 60 hours a week not worth it.....
Exactly, that’s why this is my last year dashing! I made $50,000….$9,000 for gas, $4,000car repairs, $8,000 taxes… it’s just not worth putting in ALL those hours… which estimates to be minimum wage once everting is deducted. It SUCKS!
@@doordashindiva2739 If you made $50,000 dashing you should have written off your miles. If you drove 40,000 you could have written off about $24,000. $50,000-$24,000=$26,000. $26,000×.152%= $3952. Then you pay your federal tax on 26,000-$12950 standard deduction.
There's no cap on mileage. Ofcourse you have to show some type of proof as to what you report.
Get to the meat and potatoes..
IDK man. That haircut is a red flag but I will try to focus on the message
😂😂😂😂
🔥💚🤝✨✅
💯
💰🏃🚗🍔🍕🍟🌮 🔥🔥🔥
I been doing doordash for 7 years yet they dont allow any tax write off.....
Um doordash isn't the IRS.
Tf
Because you choose the standard deduction.
Topic and content don't match.
What did you think the video was going to be about?
This is a troll job if I have ever seen it. It's Tax write off tips for Gig work I.E. Spark, Doordash, Uber Eats, Grubhub etc. He gave deduction tips on how to tax write off for tax time to save you money on what you may the IRS.