{"id":3328,"date":"2020-10-29T11:06:29","date_gmt":"2020-10-29T15:06:29","guid":{"rendered":"https:\/\/falconexpenses.com\/blog\/?p=3328"},"modified":"2022-02-12T17:28:27","modified_gmt":"2022-02-12T22:28:27","slug":"delivery-drivers-tax-deductions","status":"publish","type":"post","link":"https:\/\/falconexpenses.com\/blog\/delivery-drivers-tax-deductions\/","title":{"rendered":"Delivery Drivers Tax Deductions, Maximize Take-Home Income"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_74 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69d34b905bf7a\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69d34b905bf7a\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/falconexpenses.com\/blog\/delivery-drivers-tax-deductions\/#An_overview_of_tax_deductions_for_delivery_drivers_and_couriers_some_you_dont_know_Reduce_your_gross_taxable_income\" >An overview of tax deductions for delivery drivers and couriers (some you don&#8217;t know). Reduce your gross taxable income.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/falconexpenses.com\/blog\/delivery-drivers-tax-deductions\/#Expenses_Related_to_Transportation_Cars_Vehicle_Scooters_Bike\" >Expenses Related to Transportation: Cars, Vehicle, Scooters, Bike<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/falconexpenses.com\/blog\/delivery-drivers-tax-deductions\/#Other_Non_Transportation_Deducible_Business_Expenses\" >Other, Non Transportation, Deducible Business Expenses<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/falconexpenses.com\/blog\/delivery-drivers-tax-deductions\/#What_are_the_to_expense_deductions_for_delivery_drivers\" >What are the to expense deductions for delivery drivers?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/falconexpenses.com\/blog\/delivery-drivers-tax-deductions\/#Commonly_Overlooked_Expense_Deductions_for_Delivery_Drivers\" >Commonly Overlooked Expense Deductions for Delivery Drivers<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/falconexpenses.com\/blog\/delivery-drivers-tax-deductions\/#Self_Employment_Tax\" >Self Employment Tax<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/falconexpenses.com\/blog\/delivery-drivers-tax-deductions\/#About_Falcon_Expenses\" >About Falcon Expenses<\/a><\/li><\/ul><\/nav><\/div>\n<span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 4<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span>\n<h2 class=\"wp-block-heading\" id=\"an-overview-of-tax-deductions-for-delivery-drivers-and-couriers-some-you-don-t-know-reduce-your-gross-taxable-income\"><span class=\"ez-toc-section\" id=\"An_overview_of_tax_deductions_for_delivery_drivers_and_couriers_some_you_dont_know_Reduce_your_gross_taxable_income\"><\/span>An overview of tax deductions for delivery drivers and couriers (some you don&#8217;t know). Reduce your gross taxable income.<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image alignwide size-large\"><a href=\"https:\/\/falconexpenses.com\/blog\/wp-content\/uploads\/2021\/01\/Delivery-Driver-Tax-Deductions.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"560\" height=\"315\" src=\"https:\/\/falconexpenses.com\/blog\/wp-content\/uploads\/2021\/01\/Delivery-Driver-Tax-Deductions.jpg\" alt=\"\" class=\"wp-image-3557\" srcset=\"https:\/\/falconexpenses.com\/blog\/wp-content\/uploads\/2021\/01\/Delivery-Driver-Tax-Deductions.jpg 560w, https:\/\/falconexpenses.com\/blog\/wp-content\/uploads\/2021\/01\/Delivery-Driver-Tax-Deductions-300x169.jpg 300w\" sizes=\"auto, (max-width: 560px) 100vw, 560px\" \/><\/a><figcaption>Maximize your tax deductions by becoming more aware of what is available to you to deduct. Read on to learn.<\/figcaption><\/figure>\n\n\n\n<p>There are many advantages to being a delivery driver. Often called a courier. <br>One advantage is self-employment. Self-employment gives delivery drivers autonomy over their schedule and life. Delivery drivers are a bit like a small business. In addition, delivery drivers have to manage businesses expenses. Continue reading for tips about how to do this.<\/p>\n\n\n\n<p>Delivery drivers have unique business costs that are important to understand if you&#8217;re a DoorDash driver, GrubHub driver, PostMates driver, Amazon delivery driver, UberEATS driver, or InstaCart driver (to name a few). <\/p>\n\n\n\n<p>It&#8217;s important to understand the proper way to account for delivery driver tax deductions. Maximizing tax deductions increases a delivery driver&#8217;s take-home income. More on that below.<\/p>\n\n\n\n<p>There are many delivery driver tax deductions. Most are for expenses related to the cost of doing business. For example, the operation and use of the car or vehicle used for deliveries. We explain each of these next.<br><br>Also, delivery drivers are often challenged with keeping vehicle expenses organized. In the event of this, we recommend checking out this article, <a href=\"https:\/\/falconexpenses.com\/blog\/simplified-ways-to-organize-vehicle-expenses\/\">Simplified Ways to Track and Organize Vehicle Expenses<\/a>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"do-you-work-for-more-than-one-company-as-a-delivery-driver\"><em>Do you work for more than one company as a delivery driver?<\/em><\/h3>\n\n\n\n<p>Check out this article that goes over the only mobile app on the market that allows you to organize expenses (including mileage expenses) by each employer, <a href=\"https:\/\/falconexpenses.com\/blog\/effortlessly-organize-1099-expenses-by-employer\/\">Effortlessly Organize 1099 Expenses by Employer<\/a>. <br>This will save you tons of time and make your life super easy come tax time.<\/p>\n\n\n\n<p>It&#8217;s important for delivery drivers to track their mileage expenses because they are tax-deductible. Mileage tracker apps come with many features and functions. With that said, we want you to be informed about all of the top miles tracker app features and functions so you can get the most value out of your app. Therefore, check out this article we prepared with a lot of thought and care just for you, <a href=\"https:\/\/falconexpenses.com\/blog\/top-mileage-tracker-app-features-for-self-emloyed\/\">Top Mileage Tracker App Features for Self Employed<\/a>. <br>We assure you, you want to know what features you might be overlooking, this could save you time, and money.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"expenses-related-to-transportation-cars-vehicle-scooters-bike\"><span class=\"ez-toc-section\" id=\"Expenses_Related_to_Transportation_Cars_Vehicle_Scooters_Bike\"><\/span>Expenses Related to Transportation: Cars, Vehicle, Scooters, Bike<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"for-deliveries-by-car-choose-a-mileage-expense-deduction-method\">For Deliveries by Car, Choose a Mileage Expense Deduction Method<\/h3>\n\n\n\n<p>Each mile you drive for delivery is tax-deductible.<\/p>\n\n\n\n<p>First, choose your mileage expense tax deduction method. <br>You have two options*:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"actual-expense-method\">Actual Expense Method<\/h3>\n\n\n\n<p>The <em>Actual Expense Method<\/em> is a method where the tax payer deducts each individual expense. For example, the tax payer deducts separately depreciation, lease payments, registration fees, etc.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"standard-mileage-method\">Standard Mileage Method<\/h3>\n\n\n\n<p>The Standard Mileage Method is a method for deducting car expenses that uses a per mile driven amount. This amount is predetermined annually by the IRS; it&#8217;s called the <em><a href=\"https:\/\/falconexpenses.com\/blog\/irs-standard-mileage-rate\/\">Standard Mileage Rate.<\/a><\/em> Use this method if you own or lease your delivery vehicle. For the last 5+ years this amount has been around fifty cents per mile. <br><br>The <em>Standard Mileage Method<\/em> is convenient. Instead of spending a lot of time to itemize each expense, as done in the <em>Actual Expense Method<\/em>, all expenses are included in a single per-mile rate. Each year the IRS takes into consideration the cost of fuel, maintenance and the current economic environment to calculate the standard mileage rate. This method is straight forward, easier and will result in a larger tax deduction for delivery drivers than the <em>Actual Expense Method.<\/em><\/p>\n\n\n\n<p>*These two options are only for delivery drivers that use a car or vehicle for deliveries.<\/p>\n\n\n\n<p>Review the following article for detailed information about each of these deduction methods, which one to choose, and how to use them, <a href=\"https:\/\/falconexpenses.com\/blog\/how-to-maximize-business-use-car-tax-deduction\/\">Actual Car Expense Method vs Standard Mileage Rate<\/a>. <\/p>\n\n\n\n<hr class=\"wp-block-separator\"\/>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"standard-mileage-method-1\">Standard Mileage Method<\/h4>\n\n\n\n<p>Please refer to the following article for the most up-to-date per-mile rates for the <em>Standard Mileage Method<\/em>, <a href=\"https:\/\/falconexpenses.com\/blog\/irs-standard-mileage-rate\/\">IRS Standard Mileage Rate<\/a>.<\/p>\n\n\n\n<hr class=\"wp-block-separator\"\/>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"other-non-transportation-deducible-business-expenses\"><span class=\"ez-toc-section\" id=\"Other_Non_Transportation_Deducible_Business_Expenses\"><\/span>Other, Non Transportation, Deducible Business Expenses<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>There are other tax-deductible business expenses available to delivery drivers and couriers. These expenses include:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Health insurance<\/li><li>Communications: Phone and phone accessories such as car charger and car mount.<\/li><li>The cost of hot bags and hot blankets in addition to backpacks<\/li><li>Your car loan interest payment. Check out this article for comple details, <a href=\"https:\/\/falconexpenses.com\/blog\/car-payment-write-off\/\">How to deduct my car payment<\/a>.<\/li><li>Your <a href=\"https:\/\/falconexpenses.com\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Falcon Expenses<\/strong><\/a> subscription<\/li><\/ul>\n\n\n\n<p>Do you need a business loan to finance you next big business purchase or growth strategy?<\/p>\n\n\n\n<p>Check out this article if you answered yes, <a href=\"https:\/\/falconexpenses.com\/blog\/get-a-business-loan-approved\/\">How to Get Approved for a Small Business Loan<\/a>  <\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"what-are-the-to-expense-deductions-for-delivery-drivers\"><span class=\"ez-toc-section\" id=\"What_are_the_to_expense_deductions_for_delivery_drivers\"><\/span>What are the to expense deductions for delivery drivers?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Mileage and vehicle-related expenses are unarguably the top expense deductions for delivery drivers. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"commonly-overlooked-expense-deductions-for-delivery-drivers\"><span class=\"ez-toc-section\" id=\"Commonly_Overlooked_Expense_Deductions_for_Delivery_Drivers\"><\/span>Commonly Overlooked Expense Deductions for Delivery Drivers<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>It&#8217;s not uncommon for delivery drivers and couriers to overlook miscellaneous business expenses. <br>For example, expenses for items and services used specifically for work such as car maintenance expenses (for those using the actual expense method), cost of phone supplies such as car mounts, etc. With that said, most items you purchase to use as part of your work are likely deductible. They are at least partially deductible if not completely tax-deductible.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"self-employment-tax\"><span class=\"ez-toc-section\" id=\"Self_Employment_Tax\"><\/span>Self Employment Tax<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>There are taxes you should be aware of as a self-employed delivery driver. <br>For example, Medicare and Social Security Taxes. Did you know that self-employed individuals pay their own Medicare and Social Security Tax? Don&#8217;t worry, we&#8217;ve got you covered. <\/p>\n\n\n\n<p>Read the following article for details about self-employment tax, <a href=\"https:\/\/falconexpenses.com\/blog\/what-is-self-employment-tax\/\">What is Self Employment Tax?<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"about-falcon-expenses\"><span class=\"ez-toc-section\" id=\"About_Falcon_Expenses\"><\/span>About Falcon Expenses<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Falcon Expenses is a top-rated expense and <strong><a href=\"https:\/\/falconexpenses.com\/blog\/how-to-use-falcon-expenses-gps-mileage-expense-tracker\/\">mileage tracker app<\/a><\/strong> for self-employed and small businesses. Falcon is great for business travels and remote workers. <br><br><strong><em>On average, Falcon customers record $6,600, in annual tax deductions. Get started today. <\/em><\/strong><br><br>The longer you wait, the more tax deductions you miss.<\/p>\n\n\n\n<p>Automatically track mileage expenses and expenses, keep an <a href=\"https:\/\/falconexpenses.com\/blog\/how-to-keep-an-odometer-log-of-business-mileage\/\">odometer log<\/a>, <a href=\"https:\/\/falconexpenses.com\/blog\/business-expense-receipt-management\/\">receipt vault<\/a> and log billable hours. Quickly organize expenses by time period, project, or client. Easily create expense reports and <a href=\"https:\/\/falconexpenses.com\/blog\/mileage-expense-log-requirements\/\">mileage logs<\/a> with your expense data to email to anyone in PDF or spreadsheet formats, all from your phone. Falcon&#8217;s <a href=\"https:\/\/falconexpenses.com\/blog\/falcon-expenses-expense-report-template\/\" target=\"_blank\" rel=\"noreferrer noopener\">expense report template<\/a> is IRS compliant. Use for keeping track of tax deductions, mileage logs, time logs, reimbursements, taxes, record keeping, and more. Falcon Expenses is great for self-employed, freelancers, realtors, delivery drivers, couriers, business travelers, truckers, and more.<\/p>\n<!-- AddThis Advanced Settings generic via filter on the_content --><!-- AddThis Share Buttons generic via filter on the_content -->","protected":false},"excerpt":{"rendered":"<p><span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 4<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span>Various tax deductions for delivery drivers and couriers some are new and unfamiliar. Reduce your gross taxable income.<!-- AddThis Advanced Settings generic via filter on wp_trim_excerpt --><!-- AddThis Share Buttons generic via filter on wp_trim_excerpt --><\/p>\n","protected":false},"author":1,"featured_media":3557,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14,16,1974],"tags":[21,1987,1986,1988,1989,2188,1991,30,1151,2186],"class_list":["post-3328","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-taxes","category-mileage-expenses","category-self-employed","tag-actual-car-expense-method","tag-courier","tag-delivery-drivers","tag-doordash","tag-grubhub","tag-instacart","tag-postmates","tag-standard-mileage-rate-method","tag-standard-mileage-reimbursement-rate","tag-ubereats"],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/falconexpenses.com\/blog\/wp-json\/wp\/v2\/posts\/3328","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/falconexpenses.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/falconexpenses.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/falconexpenses.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/falconexpenses.com\/blog\/wp-json\/wp\/v2\/comments?post=3328"}],"version-history":[{"count":0,"href":"https:\/\/falconexpenses.com\/blog\/wp-json\/wp\/v2\/posts\/3328\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/falconexpenses.com\/blog\/wp-json\/wp\/v2\/media\/3557"}],"wp:attachment":[{"href":"https:\/\/falconexpenses.com\/blog\/wp-json\/wp\/v2\/media?parent=3328"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/falconexpenses.com\/blog\/wp-json\/wp\/v2\/categories?post=3328"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/falconexpenses.com\/blog\/wp-json\/wp\/v2\/tags?post=3328"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}