How to Find Miles Driven on DoorDash: Your Comprehensive Guide
Tracking your mileage is critical for DoorDash drivers looking to maximize their tax deductions and understand their true earnings. Unfortunately, DoorDash doesn’t automatically provide a comprehensive mileage log. Therefore, you’ll need to be proactive in tracking your miles yourself. Here’s the lowdown on how to find and document your miles driven on DoorDash:
The most reliable method is to use a mileage tracking app or a dedicated mileage log. These tools accurately record your trips, distinguishing between personal and business miles, which is crucial for tax purposes. Alternatively, meticulously recording your starting and ending odometer readings for each dash is a more manual but viable option.
Mileage Tracking Essentials for DoorDash Drivers
Why Mileage Tracking Matters
As a DoorDash driver, you’re classified as an independent contractor. This means you’re responsible for your own taxes, and you’re eligible for valuable tax deductions, including the standard mileage deduction provided by the IRS. This deduction allows you to write off a certain amount per mile driven for business purposes, significantly reducing your taxable income. Without accurate mileage tracking, you risk missing out on substantial savings.
DoorDash and Mileage Tracking: What to Expect (and Not Expect)
DoorDash provides limited mileage information. The app records the distance between the restaurant and the customer. However, this is not a complete reflection of your business mileage. It doesn’t account for:
- Miles driven from your home to your first pickup.
- Miles driven while waiting for orders.
- Miles driven from your last delivery back home.
- Miles driven between accepting an order and arriving at the restaurant.
Therefore, relying solely on DoorDash’s information will significantly underestimate your deductible mileage.
Methods for Tracking Your DoorDash Miles
You have a few options for tracking your miles, each with its pros and cons:
- Mileage Tracking Apps: These apps (like Stride, Everlance, MileIQ, and Gridwise) use your phone’s GPS to automatically record your trips. They can differentiate between personal and business drives, generate reports, and even integrate with accounting software. This is generally the most accurate and convenient option.
- Manual Mileage Log: A simple spreadsheet or notebook can work. You’ll need to meticulously record the date, starting and ending location, odometer readings at the start and end of each dash, and the purpose of the trip (DoorDash delivery). This method requires discipline and accuracy.
- Odometer Tracking with a Notepad: If you’re looking for a bare minimum approach, log the starting and ending odometer reading for each dash. Subtract the starting reading from the ending reading to calculate the total miles driven during the dash.
Choosing the Right Mileage Tracking Method
The best method depends on your preferences and tech-savviness.
- For ease of use and accuracy: Choose a mileage tracking app.
- For budget-conscious drivers: A manual mileage log is a cost-effective option, but be prepared to invest time and effort.
- For the minimalist: Odometer tracking, while simple, relies on your diligence.
Best Practices for Accurate Mileage Tracking
Regardless of your chosen method, follow these best practices:
- Start tracking from day one. Don’t wait until tax season to try and reconstruct your mileage.
- Record trips in real-time. Don’t rely on your memory.
- Document all relevant information. Include date, location, purpose, and odometer readings.
- Review your mileage log regularly. Ensure accuracy and completeness.
- Keep your mileage log separate from your other business expenses. This will make tax preparation easier.
- Back up your data regularly. If using an app, ensure your data is backed up to the cloud. If using a manual log, create a digital copy.
Tax Implications of Mileage Tracking
Your tracked mileage directly impacts your tax liability. The IRS allows you to deduct either the standard mileage rate or the actual expenses of operating your vehicle (gas, maintenance, insurance, etc.). The standard mileage rate is typically the simpler and more advantageous option for most DoorDash drivers.
To claim the mileage deduction, you’ll need to report your business miles on Schedule C (Form 1040) of your tax return. Consult with a tax professional to determine the best approach for your specific situation and to ensure compliance with IRS regulations.
Frequently Asked Questions (FAQs)
1. Does DoorDash track my miles for tax purposes?
No, DoorDash does not provide a comprehensive mileage log that’s sufficient for tax purposes. They only track the distance between the restaurant and the customer, which is an incomplete picture of your total business mileage.
2. What is the standard mileage rate for DoorDash drivers?
The standard mileage rate changes annually. You can find the current rate on the IRS website.
3. Can I deduct gas expenses in addition to the standard mileage rate?
No, you cannot deduct both gas expenses and the standard mileage rate. The standard mileage rate is intended to cover all vehicle-related expenses, including gas, maintenance, insurance, and depreciation.
4. What if I forget to track my miles for a few days?
Do your best to reconstruct your mileage as accurately as possible. Use your delivery history in the DoorDash app, combined with your memory, to estimate the miles driven. However, remember that this will be an estimate, and it’s best to avoid relying on reconstruction whenever possible.
5. Can I use the same mileage log for multiple delivery platforms (Uber Eats, Grubhub, etc.)?
Yes, you can use the same mileage log for all your delivery platforms. Just be sure to clearly document which platform you were driving for on each trip.
6. Is a free mileage tracking app sufficient?
Free mileage tracking apps can be a good starting point, but they may have limitations, such as limited storage, fewer features, or ads. Paid apps typically offer more robust features and better support.
7. What happens if I get audited by the IRS regarding my mileage deduction?
If you’re audited, you’ll need to provide documentation to support your mileage deduction. This includes your mileage log, as well as any other relevant records, such as delivery confirmations or receipts. Keep your logs in a safe place, as you may need them in the future.
8. Can I claim the actual expenses of operating my vehicle instead of the standard mileage rate?
Yes, you can choose to deduct the actual expenses of operating your vehicle, such as gas, maintenance, insurance, and depreciation. However, this requires more detailed record-keeping and is often more complex than using the standard mileage rate. Consult with a tax professional to determine which method is best for you.
9. What constitutes a “business mile” for DoorDash drivers?
A “business mile” is any mile driven for the purpose of delivering for DoorDash. This includes miles driven from your home to your first pickup, miles driven between deliveries, and miles driven from your last delivery back home. Miles driven for personal reasons are not deductible.
10. How far back can I amend my tax return to claim missed mileage deductions?
Generally, you can amend your tax return to claim missed deductions for the previous three tax years.
11. Are there any penalties for overstating my mileage deduction?
Yes, overstating your mileage deduction can result in penalties from the IRS. It’s important to be accurate and honest when claiming your mileage deduction.
12. Where can I find more information about mileage tracking and tax deductions for independent contractors?
You can find more information on the IRS website (irs.gov), as well as from tax professionals and reputable online resources. Seek professional advice from a tax accountant, if needed.
Tracking your mileage is a crucial aspect of being a successful DoorDash driver. By implementing a reliable tracking method and following best practices, you can maximize your tax deductions and gain a clearer understanding of your business expenses.
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