First and foremost I am NOT, repeat NOT a tax expert. I have to hire help to do my taxes, because well numbers are just not my thing.
BUT I did learn a few things about driving gigs and what you can write off. Also some members here on JC were asking about this so here is some info.
As a driver for Grubhub you can write things off that count as an expense for work such as mileage (SAVE all of your receipts), car usage expenses such as oil changes, basic maintenance, car insurance costs, etc.
Here is how one Grubhub driver broke things down!
Deduction for use of car (mileage): .575 per mile
Deduction for use of car (actual): save all gas receipts, insurance, maintenance, etc.
Most cars are designed to go 400 miles on one tank of gas, no matter the tank size....a little car with better mpg has a smaller tank than a pickup truck.
400 miles x .575 = $230 deduction PER TANK of gas consumed. Subtract the cost of the gas. Let's call it $30 for a fillup from empty. Now you have $200 left in deduction that has not come out of your pocket. That is PER TANK. I drove over 35,000 miles last year for Grubhub. That gives me a deduction worth $20,125 (35,000 * .575) of which I actually spent $2625 ($30 x 88 fillups).
The rest of the deduction accounts for repairs, maintenance, insurance, etc. If you are spending another $18k over gas cost in a year in actual expenses then you need to use a different car. My only extra expenses are more frequent oil changes (monthly instead of quarterly, which is an extra $300 for the year) and I replace tires annually ($800) so my actual expenses on the car would be:
$2625 (gas) + $300 (oil changes) + $800 (tires) + $1200 (insurance) = $4925
The difference for the rest of the deduction ($15k) accounts for wear and tear and eventual replacement of the vehicle. According to this driver The IRS is VERY, VERY generous with the mileage deduction as it is the same for someone in a sedan as it is for someone driving an 18 wheeler.
And, never, ever, ever, ever, ever depend on anyone else to track your mileage. The info that Grubhub gives you is only the mileage from store pickup to drop off. You can write off all mileage that takes place while you are on in the app - including the trip to the restaurant to get food and the trip home after your final delivery.
I hope that helps!!!
Make sure to contact your local tax experts for more guidance and info!
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