When Does DoorDash Send Mileage Information?

For DoorDash drivers, accurately tracking mileage is crucial for maximizing tax deductions. The burning question is: When does DoorDash actually provide you with that mileage information? The answer is, DoorDash provides a limited summary of your mileage, usually at the end of each year, for tax purposes. However, this mileage data is notoriously incomplete and often underestimated. Relying solely on DoorDash’s figures can lead to leaving money on the table, so you should track all mileage while driving for DoorDash.

Why DoorDash’s Mileage Information Isn’t Enough

The Mileage Data Deficiency

DoorDash only tracks the distance between the restaurant and the customer’s delivery location. This means they completely overlook several key mileage categories that are perfectly deductible. Think about it:

• Mileage from your home to your first delivery location: This is deductible if you’re starting your shift directly from home.
• Mileage between deliveries: Crucial for those periods where you’re driving around waiting for another order.
• Mileage returning home after your last delivery: Deductible if you’re heading straight home after your shift.

These omissions can add up to a significant amount of deductible mileage, potentially saving you a substantial sum on your taxes.

The Importance of Independent Tracking

That’s why, as a seasoned expert in the gig economy, I always advise DoorDash drivers to meticulously track their own mileage. This not only ensures accuracy but also gives you control over your tax situation. Don’t rely on DoorDash’s incomplete information!

Methods for Accurate Mileage Tracking

The Manual Method: Pen and Paper

While old-school, this method can work for drivers who are incredibly disciplined. You’ll need a notebook dedicated solely to tracking mileage. For each delivery, record:

• Date
• Starting Location (Address or general area)
• Ending Location (Address or general area)
• Mileage

This method is free but extremely time-consuming and prone to errors. You’ll also need to calculate the total mileage at the end of the year.

Spreadsheet Savvy: Excel or Google Sheets

A slight upgrade from pen and paper, spreadsheets offer better organization and calculation capabilities. You can create columns for all the relevant information (date, start location, end location, mileage) and use formulas to automatically calculate totals. This method still requires manual input but reduces the risk of calculation errors.

The App Advantage: Mileage Tracking Apps

This is the most efficient and accurate method. Numerous mileage tracking apps are designed specifically for gig workers. These apps often use GPS to automatically track your mileage while you’re driving and allow you to categorize trips as business or personal. Popular options include:

• Stride: Specifically designed for independent contractors, it estimates deductions and tracks expenses.
• Everlance: Automatic mileage tracking, expense tracking, and detailed reports.
• MileIQ: Automatically logs drives and allows you to classify them with a simple swipe.
• TripLog: Packed with features, including IRS-compliant reporting and vehicle expense tracking.

These apps offer a trial or freemium version. They often pay for themselves in terms of time saved and increased deductions.

Why Tracking is a Must: The IRS Perspective

The IRS requires detailed records to substantiate your business expenses, including mileage. Simply providing DoorDash’s year-end summary is unlikely to cut it if you’re audited. Maintaining a detailed mileage log, whether manually or through an app, demonstrates your commitment to accuracy and significantly strengthens your position in case of an audit.

FAQs: Your DoorDash Mileage Questions Answered

1. Does DoorDash provide a year-end tax summary?

Yes, DoorDash provides a year-end tax summary that includes a 1099-NEC form if you earned more than $600. This form reports your gross earnings but includes very limited mileage information.

2. What mileage can I deduct as a DoorDash driver?

You can deduct the mileage driven for business purposes, including the distance between the restaurant and the customer, the distance from your home to your first delivery, the distance between deliveries, and the distance from your last delivery back home (if you went straight home).

3. What is the standard mileage rate for 2023 and 2024?

For 2023, the standard mileage rate for business use was 65.5 cents per mile for the first half of the year and 67 cents per mile for the second half of the year. For 2024, the standard mileage rate is 67 cents per mile.

4. How do I calculate my mileage deduction?

Multiply your total business mileage for the year by the applicable standard mileage rate. For example, if you drove 10,000 miles for DoorDash in 2024, your deduction would be 10,000 miles * $0.67 = $6,700.

5. Can I deduct actual expenses instead of using the standard mileage rate?

Yes, you can deduct actual expenses like gas, repairs, insurance, and depreciation. However, this method is more complex and requires meticulous record-keeping. You cannot use both the standard mileage rate and actual expenses for the same vehicle.

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

You can only deduct the portion of your car expenses that is directly related to your business. You’ll need to keep detailed records to accurately allocate expenses between personal and business use. Mileage tracking is key to justifying the business use percentage.

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

If you don’t track your mileage, you’ll likely miss out on significant tax deductions. This can result in a higher tax bill and a loss of income. Document everything!

8. Can I deduct the cost of meals while DoorDashing?

Generally, you can deduct 50% of the cost of meals while working if they are ordinary and necessary business expenses. However, this typically applies to meals eaten while traveling away from your tax home. Simply eating a meal while DoorDashing is usually not deductible.

9. Are there any other deductible expenses for DoorDash drivers?

Yes, you can potentially deduct expenses like:

• Cell phone bills: The portion used for business purposes.
• Hot bags: For keeping food warm.
• Car washes: To maintain a professional appearance.
• Parking fees and tolls: Incurred while delivering.
• Health insurance premiums (if self-employed and not eligible for employer-sponsored coverage).

10. What is a “tax home” for DoorDash drivers?

Your tax home is typically your regular place of business or your residence if you don’t have a regular place of business.

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

You’ll need to file a Schedule C (Profit or Loss From Business) with your Form 1040. This is where you report your income and expenses from DoorDash.

12. Should I consult with a tax professional?

Absolutely! Tax laws are complex and can change frequently. Consulting with a qualified tax professional is always a good idea to ensure you are taking all the deductions you are entitled to and complying with all applicable tax laws. A tax professional can provide personalized advice based on your specific circumstances.

The Bottom Line

DoorDash’s mileage information is a starting point, not the final destination. To maximize your tax savings and avoid potential issues with the IRS, diligently track your own mileage using a method that works best for you. Remember, accurate record-keeping is the key to a successful tax season for DoorDash drivers. Don’t leave money on the table – track every mile!