How to See Your Mileage on DoorDash: The Ultimate Guide for Maximizing Tax Deductions
So, you’re hustling hard as a Dasher, racking up miles delivering deliciousness to hungry customers. But are you keeping track of those miles? You should be! Those miles translate directly into valuable tax deductions, potentially saving you a significant chunk of change come tax season.
How to See Your Mileage on DoorDash?
The straightforward answer: DoorDash does not directly provide an in-app, comprehensive mileage tracker. While the app shows you the distance for each individual delivery, it doesn’t automatically calculate your total mileage for a shift, week, month, or year. This means you’ll need to employ alternative methods for accurate tracking.
Here’s a breakdown of the methods you can use:
- Manual Tracking: This involves using a physical notebook or spreadsheet (like Google Sheets or Excel) to meticulously record your starting odometer reading, ending odometer reading, and the date for each shift. While reliable, it requires diligence and can be time-consuming.
- Mileage Tracking Apps: Numerous apps are specifically designed for mileage tracking, and many integrate seamlessly with driving. Popular choices include Stride, Everlance, MileIQ, and TripLog. These apps use GPS to automatically track your miles, categorize trips (business vs. personal), and generate reports.
- Google Maps Timeline: This is a hidden gem for many Dashers! Google Maps tracks your location history (assuming you have location services enabled). You can access your Timeline to see your routes and estimate distances driven. However, accuracy can vary, and you’ll still need to manually calculate the mileage.
- Vehicle’s Odometer: The good old-fashioned method! Before starting your Dash, record your odometer reading. At the end of your shift, record it again. The difference is the total mileage for that shift. Remember to track starting and ending odometer readings, and daily Totals.
The most accurate and recommended method is using a dedicated mileage tracking app. These apps not only automate the process but also ensure compliance with IRS guidelines, which require detailed records for claiming mileage deductions.
Frequently Asked Questions (FAQs) About DoorDash Mileage Tracking
1. Why Doesn’t DoorDash Track Mileage Directly?
DoorDash, like other gig economy companies, considers its Dashers independent contractors, not employees. As such, they are responsible for their own record-keeping and tax obligations. Providing direct mileage tracking would potentially blur the lines between contractor and employee, which could have significant legal and financial implications for DoorDash.
2. What Mileage Can I Deduct as a Dasher?
You can deduct the miles you drive from the moment you leave your house/starting point to begin your Dash, until the time you return to your house/end point once your Dash is over. This includes miles driven:
- To pick up food from restaurants.
- To deliver food to customers.
- Between deliveries.
- To restaurants if the delivery is canceled.
- To and from zones or hot spots to begin Dashing or when relocating to a more active zone.
You cannot deduct personal miles, such as driving to the grocery store or running errands, even if they occur during your Dashing hours. Also, note that in 2023, the IRS standard mileage rate for business use was 65.5 cents per mile. For 2024, the IRS standard mileage rate for business use increased to 67 cents per mile. Make sure you know the current standard mileage rate for the year you are filing your taxes.
3. What Information Do I Need to Record for Mileage Deductions?
The IRS requires specific information to support your mileage deduction claim. This includes:
- Date of the trip: The date you drove for DoorDash.
- Purpose of the trip: Clearly indicate that the trip was for DoorDash deliveries.
- Starting point: Where you started your driving.
- Destination: The location where you ended your driving.
- Miles driven: The total number of miles driven for that trip.
- Odometer readings: Starting and ending odometer readings for each trip.
Using a mileage tracking app simplifies this process, as it automatically records this information.
4. How Does the IRS Define “Business Use” of a Vehicle?
The IRS defines “business use” as driving your vehicle for income-generating activities. In the context of DoorDash, this includes all driving related to picking up and delivering orders. The primary key is that the driving directly relates to your business of providing delivery services.
5. Can I Deduct Actual Vehicle Expenses Instead of Mileage?
Yes, you can choose to deduct actual vehicle expenses instead of using the standard mileage rate. This includes expenses like gas, oil changes, repairs, insurance, and depreciation. However, this method requires meticulous record-keeping of all vehicle-related expenses and can be more complex to calculate. You also need to choose a method, and stick to it in future years. You can’t use actual expenses one year, and standard mileage rate another.
6. What if I Forget to Track My Mileage for a Few Days?
Don’t panic! While it’s best to track mileage daily, you can still reconstruct your mileage using methods like Google Maps Timeline or by reviewing your DoorDash delivery history to estimate the distances driven. However, remember that these are estimations and may not be as accurate as real-time tracking. Always keep the best records possible.
7. Can I Use My Car Insurance Information to Track Mileage?
No, your car insurance company typically does not track your mileage for business purposes. While they may ask for your annual mileage estimate for insurance purposes, this information is not sufficient for claiming mileage deductions.
8. Are There Any Mileage Tracking Apps Specifically for DoorDash Drivers?
While there isn’t a single app exclusively for DoorDash drivers, many popular mileage tracking apps like Stride, Everlance, and MileIQ are widely used by Dashers due to their ease of use, accuracy, and features tailored to independent contractors. Some even allow you to categorize income and expenses associated with DoorDash.
9. Can I Deduct Tolls and Parking Fees in Addition to Mileage?
Yes, you can deduct tolls and parking fees incurred while delivering for DoorDash, in addition to your mileage deduction. Be sure to keep receipts for these expenses.
10. What Happens if I Use My Vehicle for Both Personal and Business Use?
If you use your vehicle for both personal and business purposes, you can only deduct the portion of your mileage and expenses that are directly related to your DoorDash deliveries. This is why accurate record-keeping is crucial to separate business miles from personal miles.
11. How Long Should I Keep My Mileage Records?
The IRS recommends keeping your mileage records for at least three years from the date you file your tax return or two years from the date you paid the tax, whichever is later. This is in case you are audited and need to provide documentation to support your mileage deduction claim.
12. Should I Consult with a Tax Professional About My Mileage Deductions?
Absolutely! While this guide provides valuable information, it’s always a good idea to consult with a tax professional to ensure you are maximizing your deductions and complying with all IRS regulations. They can provide personalized advice based on your specific situation.
In conclusion, while DoorDash doesn’t offer direct mileage tracking, there are several effective methods you can use to accurately track your miles and maximize your tax deductions. By choosing the right tracking method and maintaining detailed records, you can keep more money in your pocket and ensure you are complying with IRS regulations.
Leave a Reply