As a DoorDash driver, you benefit from the booming gig economy, which gives you the flexibility to choose your own hours and establish your own conditions for earning money. The flexibility and freedom of gig labor do, however, come with some obligations, particularly in terms of taxation. The ability to deduct expenditures linked to one’s business, such as mileage, is a substantial tax benefit accessible to gig workers like DoorDash drivers. In order to optimize your tax savings, we’ll explain to you how to measure your miles as a DoorDash driver in this post.
Why Mileage Tracking Matters
For DoorDash drivers, keeping track of your miles is essential since it enables you to correctly submit your travel expenses to the IRS. You can exclude some of your car costs from your taxable income if you keep track of your miles. This can greatly lower your tax obligation and increase the amount of money you get in your refund during tax season.
Here are some reasons why mileage tracking is so important:
- Tax Deductions: As an independent contractor, you may write off some costs associated with your line of work, such as mileage, in order to lower your taxable income. This may result in significant tax savings.
- Proof of Expenses: Mileage monitoring offers a transparent record of the driving you do for work, which may be quite helpful in the case of an audit or if you need to back up your deductions.
- Accurate Reimbursement: Since DoorDash frequently bases remuneration on mileage, recording your mileage will help you determine the reimbursement you are due from the company if you use your car to make deliveries for DoorDash.
Using Google Maps for Mileage Tracking
Using Google Maps mileage tracker is one of the simplest methods for DoorDash drivers to keep track of their miles. This is how you do it:
- Open Google Maps: Start the Google Maps app on your smartphone or go to the website to access it.
- Set Your Destination: Enter your home location as the endpoint and the DoorDash delivery destination as the starting point. Google Maps will be able to compute the miles properly as a result.
- Start Navigation: To start your navigation, select “Start” after tapping the “Directions” button.
- Track Your Trip: Google Maps will now follow your journey in real time and provide you with accurate distance information.
- Save the Trip: Stop navigation after your delivery is finished, then save the trip with a meaningful name (such as “DoorDash Delivery to Customer XYZ”).
- Record the Mileage: Note the distance for your trip that Google Maps shows you.
- Repeat for Each Delivery: Repeat this process for each DoorDash delivery you make, and keep a log of your mileage for tax purposes.
Dedicated Mileage Tracker Apps
There are several choices for dedicated mileage monitoring apps that can simplify the process. How to install a mileage tracker app for DoorDash is shown below:
- Choose a Mileage Tracker App: Search for and download a reputable mileage tracker app from your device’s app store. Some popular options include MileIQ, Stride Tax, and Everlance.
- Create an Account: Follow the app’s setup instructions to create an account and enter your personal information.
- Enable Location Services: Allow the app to access your device’s location services so it can track your trips accurately.
- Set Your Work Hours: Specify your working hours to ensure the app tracks mileage only during your DoorDash shifts.
- Start Tracking: Once set up, the app will automatically begin tracking your mileage whenever you’re on the road for DoorDash.
- Categorize Trips: Most mileage tracker apps allow you to categorize trips as business or personal. Ensure that your DoorDash deliveries are categorized as business trips.
- Review and Export Data: Periodically review your mileage records in the app and export them to a spreadsheet or PDF for tax reporting.
To maximize your tax savings as a DoorDash driver, tracking your miles is essential. The key is accuracy and consistency, whether you decide to use the Google Maps mileage tracker or a specific mileage tracking software for DoorDash. You may benefit from important tax deductions and retain more of your hard-earned money in your pocket by meticulously keeping track of your miles.