How to Find Your DoorDash Mileage: The Dasher’s Deduction Guide

Finding your DoorDash mileage is crucial for maximizing your tax deductions and accurately tracking your business expenses. The most reliable way is to use a dedicated mileage tracking app, but there are alternative methods such as using your car’s odometer or reviewing your DoorDash delivery history. Let’s delve deeper into these methods and how to optimize them for accurate record-keeping.

Why DoorDash Mileage Matters: The Tax Deduction Goldmine

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 some significant tax deductions. One of the biggest is the mileage deduction, allowing you to deduct a standard rate per mile driven for business purposes. This can substantially reduce your taxable income, putting more money back in your pocket.

Currently, the IRS standard mileage rate changes each year, so be sure to confirm the current rate before filing. Keeping meticulous records of your DoorDash mileage is essential to substantiate your deduction claims and avoid potential issues with the IRS. Failing to accurately track your mileage could result in a missed opportunity to save hundreds, or even thousands, of dollars on your taxes.

Methods for Tracking Your DoorDash Mileage

1. Mileage Tracking Apps: The Automated Approach

The most efficient and accurate method for tracking DoorDash mileage is using a dedicated mileage tracking app. These apps leverage your smartphone’s GPS to automatically record your trips, eliminating manual log-keeping. Some popular options include:

• Stride Tax: Specifically designed for independent contractors, Stride Tax automatically tracks mileage, categorizes expenses, and helps estimate your quarterly taxes.
• Everlance: Offers automatic mileage tracking, expense tracking, and customizable reports. It also integrates with accounting software for seamless tax preparation.
• MileIQ: A simple and user-friendly app that automatically tracks mileage and allows you to categorize trips as business or personal.
• TripLog: Another robust mileage tracking app that offers features like automatic trip detection, customizable reports, and integration with other business apps.

Benefits of using mileage tracking apps:

• Accuracy: GPS-based tracking provides more precise mileage data compared to manual methods.
• Automation: Eliminates the need for manual log-keeping, saving time and effort.
• Organization: Keeps your mileage records organized and readily accessible for tax purposes.
• IRS Compliance: Many apps generate reports that meet IRS requirements for mileage deductions.

2. Odometer Tracking: The Manual Method

If you prefer a more traditional approach, you can track your DoorDash mileage using your car’s odometer. This involves recording your odometer readings at the beginning and end of each work day or delivery shift.

How to track mileage with your odometer:

1. Record your starting odometer reading before you begin your DoorDash deliveries.
2. Record your ending odometer reading after you finish your DoorDash deliveries for the day.
3. Subtract the starting odometer reading from the ending odometer reading to calculate the total miles driven for DoorDash.
4. Keep a detailed log including the date, starting and ending odometer readings, total miles driven, and a brief description of your work (e.g., “DoorDash deliveries”).

Drawbacks of odometer tracking:

• Manual effort: Requires consistent and accurate record-keeping.
• Potential for errors: Prone to human error, especially if you’re busy or distracted.
• Time-consuming: Can be time-consuming to manually log each trip.

3. DoorDash Delivery History: A Supplementary Resource

While not a primary source for mileage tracking, your DoorDash delivery history can provide supplementary information. DoorDash provides a summary of your deliveries within the app. However, the mileage information is often an approximation and may not include all miles driven, such as the distance to the restaurant or back home after your last delivery.

How to use your DoorDash delivery history:

1. Access your Dasher app.
2. Check earnings section.
3. Use trip tracking to obtain the mileage.

Limitations of using DoorDash delivery history:

• Inaccuracy: Mileage estimates may not be precise and could lead to underreporting.
• Incomplete data: May not include all business miles driven.
• Lack of detail: Doesn’t provide detailed records for IRS compliance.

Essential Elements of a Good Mileage Log

Regardless of the method you choose, a good mileage log should include the following information for each trip or work day:

• Date: The date the trip occurred.
• Starting Location: The address or location where the trip began.
• Ending Location: The address or location where the trip ended.
• Purpose of Trip: A clear description of the business purpose of the trip (e.g., “DoorDash delivery”).
• Miles Driven: The total number of miles driven for the trip.

Frequently Asked Questions (FAQs)

1. Is DoorDash mileage deductible?

Yes, DoorDash mileage is deductible as a business expense for independent contractors. You can deduct the standard mileage rate set by the IRS for each mile driven for business purposes.

2. Can I deduct the miles I drive to the restaurant to pick up food?

Yes, you can deduct the miles you drive to the restaurant to pick up food, as well as the miles driven to deliver the food to the customer. These are both considered business miles.

3. What about the miles I drive back home after my last delivery?

You can deduct the miles you drive back home after your last delivery if you are driving directly home from your last delivery location. If you make any personal stops along the way, you cannot deduct those miles.

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

If you use your car for both personal and business purposes, you can only deduct the business miles. You must keep accurate records to separate your personal and business mileage.

5. What is the IRS standard mileage rate for 2024?

As of 2024, the IRS standard mileage rate for business use of a car is 67 cents per mile. However, always verify the current rate on the IRS website, as it is subject to change.

6. What other expenses can I deduct as a DoorDash driver?

In addition to mileage, you may be able to deduct other expenses such as:

• Car Insurance (proportional to business use)
• Phone Expenses (proportional to business use)
• Hot Bags or Delivery Equipment
• Tolls and Parking Fees
• Health Insurance Premiums (subject to certain limitations)

7. Do I need to keep receipts for my mileage deductions?

While you don’t need to keep receipts for mileage itself, you should maintain accurate records of your mileage, including the date, starting and ending locations, purpose of the trip, and miles driven. This information is crucial to substantiate your deduction claims.

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

If you don’t track your mileage accurately, you risk underreporting your deductions, resulting in paying more taxes than necessary. Additionally, if you are audited by the IRS, you may have difficulty substantiating your deduction claims without proper documentation.

9. Can I deduct the actual expenses of my car instead of using the standard mileage rate?

Yes, you can choose to deduct the actual expenses of your car instead of using the standard mileage rate. This includes expenses such as gas, oil changes, repairs, and depreciation. However, this method is more complex and requires detailed record-keeping. You can’t switch back and forth between methods.

10. How do I file my taxes as a DoorDash driver?

As a DoorDash driver, you will file your taxes using Schedule C (Profit or Loss from Business) to report your income and expenses. You will also need to file Schedule SE (Self-Employment Tax) to calculate your self-employment tax.

11. What is the best way to track my mileage for tax purposes?

The best way to track your mileage for tax purposes is to use a dedicated mileage tracking app. These apps automatically record your trips, provide accurate mileage data, and generate reports that meet IRS requirements.

12. Are there any other tax benefits for DoorDash drivers?

Yes, DoorDash drivers may be eligible for other tax benefits such as the qualified business income (QBI) deduction. This deduction allows eligible self-employed individuals to deduct up to 20% of their qualified business income. Consult with a tax professional to determine if you are eligible for this deduction.

Conclusion: Drive Smart, Track Smart

Accurately tracking your DoorDash mileage is essential for maximizing your tax deductions and minimizing your tax liability. By using a dedicated mileage tracking app or diligently maintaining a manual mileage log, you can ensure you are claiming all eligible deductions and keeping your tax records in order. So, drive smart, track smart, and keep more of your hard-earned money!