How to Find My Mileage on DoorDash?

The question of tracking mileage is paramount for DoorDash drivers seeking to maximize tax deductions and manage expenses effectively. The most direct answer? DoorDash itself doesn’t automatically track your mileage. You, as the independent contractor, are responsible for diligently recording your miles. This typically involves using a mileage tracking app, a spreadsheet, or a physical mileage log. Now, let’s delve deeper into how to do this effectively and explore related questions to optimize your tax situation.

Why Mileage Tracking is Crucial for DoorDash Drivers

As a DoorDash driver, you’re classified as an independent contractor. This means you’re responsible for your own taxes, and thankfully, the IRS allows you to deduct expenses incurred while running your business, including business-related mileage. Failing to accurately track your mileage is essentially leaving money on the table, potentially costing you hundreds, if not thousands, of dollars in lost deductions come tax season. We are talking about real money, that should be in your pocket.

The Importance of an Accurate Mileage Log

The IRS is very specific about what they require for a mileage log. It’s not enough to simply estimate. You need detailed records that demonstrate the business purpose of each trip. A proper log must include:

• Date of the trip: When the drive occurred.
• Starting point: Where the trip began.
• Destination: Where the trip ended.
• Business purpose: The reason for the trip (e.g., “Picking up order from [Restaurant Name]” or “Delivering order to [Customer’s City]”).
• Mileage: The number of miles driven.
• Vehicle: The specific car used for the trip.

Methods for Tracking Your DoorDash Mileage

While DoorDash doesn’t offer native mileage tracking, several excellent tools and methods are available to make your life easier:

1. Mileage Tracking Apps

These apps are designed to automate the process. Many can automatically track your mileage while you drive, using GPS to record the distance and timestamps. Popular options include:

• Stride: Specifically designed for independent contractors, including integration with tax software.
• Everlance: Offers automatic mileage tracking, expense tracking, and reporting features.
• MileIQ: Another popular app known for its simplicity and accuracy.
• TripLog: Features include automatic mileage tracking, expense tracking, and route optimization.
• Google Maps Timeline: While not strictly a mileage tracking app, it can provide a historical record of your trips, which you can then manually extract and log.

Pros: Automated, accurate, and often include features for expense tracking and tax reporting. Cons: May require a subscription fee; can drain your phone battery.

2. Spreadsheet or Manual Mileage Log

If you prefer a more hands-on approach, a spreadsheet or physical mileage logbook can be effective. You’ll need to diligently record each trip’s details yourself. You can easily create a very simple spreadsheet.

Pros: Free (if using existing software), customizable. Cons: Time-consuming, prone to human error.

3. Deductible vs. Non-Deductible Mileage

It’s critical to understand what mileage is deductible. Generally, you can deduct mileage incurred from the moment you accept a delivery request until you drop it off, as well as the mileage to pick up the next order. Commuting from your home to your first delivery location is typically not deductible, nor is driving home from your last delivery of the day. However, if your home is your principal place of business (meaning you use a dedicated space solely for managing your DoorDash business), the commute may be deductible. Be sure to consult a tax professional to ensure accuracy.

4. DoorDash Earnings Statements and Mileage

While DoorDash doesn’t provide mileage logs, your earnings statements can offer clues. You can often infer the general areas you were driving in and potentially reconstruct your mileage logs based on order information. However, this is a less accurate and much more time-consuming method.

Frequently Asked Questions (FAQs)

1. What mileage can I deduct for DoorDash?

You can deduct mileage directly related to your DoorDash deliveries. This includes the miles driven from accepting an order to picking it up, the miles driven to deliver the order to the customer, and the miles driven to your next pickup location (or back to a strategic area to receive more orders). Remember, commuting miles (driving from your home to your starting area or back home at the end of the day) are generally not deductible, unless your home qualifies as your principal place of business.

2. How does the IRS mileage deduction work for independent contractors?

The IRS allows independent contractors to deduct either the standard mileage rate or the actual expenses of operating their vehicle. The standard mileage rate is a per-mile rate set by the IRS each year (it changes yearly). The actual expense method involves tracking all vehicle-related expenses (gas, maintenance, insurance, depreciation, etc.) and deducting the portion related to business use. Most drivers find the standard mileage rate simpler and more beneficial.

3. What is the current IRS mileage rate for business use?

The IRS mileage rates change annually, so it’s crucial to stay updated. Always refer to the official IRS website or consult a tax professional for the most current rate.

4. Can I deduct other expenses besides mileage?

Yes! In addition to mileage, you can potentially deduct other expenses related to your DoorDash business, such as:

• Hot/cold bags and food warming equipment
• Cell phone expenses (the portion used for business)
• Tolls and parking fees
• Health insurance premiums (potentially, if self-employed)
• Supplies (e.g., hand sanitizer, masks)

Keep meticulous records of all expenses.

5. What happens if I don’t track my mileage accurately?

Inaccurate or incomplete mileage records can lead to problems during an IRS audit. If you can’t substantiate your deductions, the IRS may disallow them, resulting in a higher tax bill and potential penalties. Accuracy is paramount.

6. Can I use Google Maps to track my mileage?

While Google Maps doesn’t automatically create mileage logs for tax purposes, you can use its Timeline feature to review your past routes and estimate distances. This requires manually extracting the data and compiling it into a log, which can be time-consuming and less accurate than using a dedicated mileage tracking app.

7. How do I claim the mileage deduction on my taxes?

You’ll claim the mileage deduction on Schedule C (Form 1040), Profit or Loss From Business (Sole Proprietorship). You’ll enter your total business miles driven for the year and calculate the deduction based on the IRS standard mileage rate or the actual expense method.

8. What if I forgot to track my mileage for part of the year?

Don’t panic! Try to reconstruct your mileage as accurately as possible using your DoorDash order history, calendar, and Google Maps Timeline. While it won’t be as precise as real-time tracking, it’s better than claiming nothing. Make sure you start tracking mileage accurately going forward.

9. Is it better to use the standard mileage rate or actual expenses?

For most DoorDash drivers, the standard mileage rate is the more beneficial and simpler option. It typically results in a larger deduction and avoids the hassle of tracking all vehicle-related expenses. However, you should calculate both ways in the first year you use a car for business to see which method benefits you most. Once you use the actual expense method, there are limitation rules on when you switch back to the standard mileage method. Consult a tax professional to determine the best approach for your situation.

10. What if I use my car for both personal and business purposes?

You can only deduct the mileage driven for business purposes. Keep detailed records to differentiate between personal and business miles. A mileage tracking app can be invaluable in this scenario.

11. Do I need to keep receipts for mileage if I use the standard mileage rate?

No, you don’t need to keep receipts for fuel or maintenance when using the standard mileage rate. The standard rate is designed to encompass these costs. However, you should keep records of your total mileage, dates, destinations, and business purposes. If you used the actual expense method, you would need to retain receipts.

12. Should I consult a tax professional about my DoorDash taxes?

Absolutely! Navigating the complexities of self-employment taxes can be challenging. A qualified tax professional can provide personalized advice, ensure you’re taking all eligible deductions, and help you stay compliant with IRS regulations. Don’t underestimate the value of expert guidance – it can save you money and stress in the long run.