Does DoorDash Track Miles? A Dasher’s Guide to Mileage Tracking

Does DoorDash track miles? The short answer is no, DoorDash does not comprehensively track your mileage for tax purposes. While the app records the start and end location of each delivery, this data isn’t detailed enough for accurate mileage deduction claims with the IRS. As seasoned veterans of the gig economy know, relying solely on DoorDash for mileage tracking is a recipe for leaving money on the table.

The Importance of Mileage Tracking for DoorDash Drivers

Being a DoorDash driver, or Dasher, offers flexibility and the potential for decent income. However, it also comes with the responsibility of managing your business expenses, and mileage is a significant one. The IRS allows self-employed individuals to deduct business-related mileage, which can drastically reduce your taxable income. Proper mileage tracking is the key to maximizing this deduction.

Think of it this way: every mile you drive for DoorDash is money in your pocket… or rather, out of the IRS’s pocket! Failing to track those miles is essentially leaving free money on the table. You’re working hard, putting wear and tear on your vehicle, and paying for gas. You deserve every deduction you’re entitled to.

Why DoorDash’s Limited Tracking Isn’t Enough

DoorDash does provide some information about the distance between the restaurant and the customer’s location. However, this is a bare minimum. It doesn’t account for:

• The miles you drive from your home to the first restaurant.
• The miles you drive between deliveries while waiting for orders.
• The miles you drive from your last delivery back home.
• Any detours or variations in the route required due to traffic or road closures.

The IRS requires detailed records to support your mileage deduction. Relying solely on DoorDash’s app data will likely fall short and could lead to issues if you’re audited.

Accurate Mileage Tracking Methods for Dashers

So, how should you track your miles? Here are a few effective methods:

1. Mileage Tracking Apps

The most efficient way is to use a dedicated mileage tracking app. These apps often use GPS to automatically record your trips, categorize them as business or personal, and generate reports that meet IRS requirements. Popular options include:

• Stride: Designed specifically for gig workers, Stride also estimates your potential tax savings.
• Everlance: A robust app with automatic tracking, expense tracking, and report generation.
• TripLog: Offers advanced features like vehicle expense tracking and team management.
• MileIQ: A simple and user-friendly app for automatic mileage logging.

2. Manual Mileage Logs

While more time-consuming, a manual mileage log can be effective if you’re diligent. Keep a notebook in your car and record the following information for each business trip:

• Date
• Starting Location
• Ending Location
• Purpose of Trip (e.g., delivery to customer X)
• Odometer Reading at Start
• Odometer Reading at End
• Total Miles Driven

3. Hybrid Approach

A hybrid approach combines the convenience of an app with the detail of a manual log. Use an app for automatic tracking but supplement it with a manual log to record any details the app might miss, such as reasons for detours or specific business purposes for each trip.

Choosing the Right Method for You

The best method for you depends on your personal preferences and level of organization. If you value convenience and accuracy, a mileage tracking app is the way to go. If you’re on a tight budget and don’t mind putting in a little extra effort, a manual log can work. No matter which method you choose, consistency is key. Develop a system and stick to it.

Key Takeaways

• DoorDash does not comprehensively track your mileage for tax purposes.
• Mileage tracking is crucial for maximizing your tax deductions.
• Use a dedicated mileage tracking app or maintain a detailed manual log.
• Be consistent with your tracking method.

By taking the time to track your mileage accurately, you can save money on your taxes and ensure you’re running your DoorDash business efficiently. Don’t leave money on the table – start tracking those miles today!

Frequently Asked Questions (FAQs) about DoorDash Mileage Tracking

Here are 12 frequently asked questions to help you further understand mileage tracking for DoorDash:

1. What exactly can I deduct as a DoorDash driver?

As a Dasher, you can deduct expenses directly related to your business. This includes mileage, vehicle maintenance (or actual car expenses like gas and oil, but not both), parking fees and tolls, and the cost of your insulated delivery bags (within reason). You can also deduct a portion of your cell phone bill if you use your phone primarily for DoorDash. Consult a tax professional for personalized advice.

2. What is the standard mileage rate for the current year?

The standard mileage rate is set by the IRS annually. You can find the current rate on the IRS website. This rate represents the cost per mile of operating your vehicle for business purposes. It typically changes from year to year, so it’s crucial to check the current rate before filing your taxes.

3. How often should I track my miles?

Ideally, you should track your miles every day you drive for DoorDash. This prevents you from forgetting trips and ensures accuracy. If daily tracking isn’t feasible, aim for at least weekly tracking.

4. What happens if I forget to track my miles for a day or a week?

If you forget to track your miles, try to reconstruct your trips as accurately as possible. Use your order history in the DoorDash app, calendar appointments, and memory to estimate the miles driven. While this won’t be as precise as real-time tracking, it’s better than claiming nothing.

5. Can I deduct expenses other than mileage?

Yes, you can deduct other expenses directly related to your DoorDash business. This includes things like parking fees, tolls, the cost of insulated delivery bags, and a portion of your cell phone bill. Keep receipts for all deductible expenses.

6. Can I deduct the cost of a new car if I use it for DoorDash?

You can’t directly deduct the full cost of a new car in the year of purchase. However, you can deduct the depreciation of the vehicle over several years, or you can choose to deduct actual expenses as mentioned in FAQ number 1. Consult a tax professional to determine the best approach for your situation.

7. How do I prove my mileage if I get audited?

To prove your mileage, you need to have detailed and accurate records. This includes a mileage log or app report that shows the date, starting and ending locations, purpose of each trip, and odometer readings. You may also need to provide supporting documentation, such as DoorDash order history or appointment calendars.

8. What is the difference between standard mileage rate and actual expenses?

The standard mileage rate is a simplified method of deducting vehicle expenses. You simply multiply your business miles by the IRS-set rate. Actual expenses involve tracking and deducting the actual costs of operating your vehicle, such as gas, oil changes, repairs, insurance, and depreciation. You can only choose one method, and you must typically stick with that method for the life of the vehicle.

9. Can I deduct mileage if I drive an electric vehicle?

Yes, you can deduct mileage if you drive an electric vehicle. The same rules and rates apply as with gasoline-powered vehicles.

10. What is considered a business mile for DoorDash?

A business mile is any mile you drive for DoorDash. This includes the miles you drive from your home to the first restaurant, between deliveries, and from the last delivery back home. It also includes any detours or variations in the route required due to traffic or road closures.

11. How does commuting affect my mileage deduction?

Commuting miles, or the miles you drive from your home to your regular place of business, are not deductible. However, for DoorDash drivers, your “place of business” is less defined. The IRS allows for deductions starting from your home if that is where you conduct a substantial amount of administrative work for your business. This often applies to Dashers.

12. Should I consult a tax professional?

Yes, it is highly recommended to consult a tax professional. They can provide personalized advice based on your specific circumstances and ensure you are taking all the deductions you are entitled to. Tax laws can be complex, and a professional can help you navigate them effectively.