🚗Vehicle expenses, including mileage and actual expenses, can be a significant tax write-off for independent contractor drivers.
🅿️Parking fees and toll expenses can be deducted to reduce taxable income for drivers.
📱Cell phone costs that are directly related to business purposes can be deducted as a business expense.
💼Health insurance premiums paid by self-employed drivers can be tax-deductible.
📦Supplies used by drivers, such as insulated courier bags, can be deducted as business expenses.
What is the difference between the standard mileage rate and the actual expense method for vehicle deductions?
—The standard mileage rate is a simplified method where you multiply the number of business miles driven by a set rate, while the actual expense method allows you to deduct the actual costs of owning and operating your vehicle for business purposes.
Can I deduct parking fees and toll expenses?
—Yes, parking fees and toll expenses incurred while delivering for Door Dash or Uber can be deducted as business expenses.
Are cell phone costs tax-deductible for independent contractor drivers?
—Yes, if you use your cell phone for business purposes, such as communicating with customers or navigating, a portion of your cell phone costs can be deductible.
Can self-employed drivers deduct health insurance premiums?
—Yes, self-employed drivers can deduct health insurance premiums paid for themselves, their spouse, and dependents.
What supplies can independent contractor drivers deduct as business expenses?
—Supplies such as insulated courier bags, water bottles, masks, and scents used to enhance the customer experience can be deductible as business expenses.
00:00Independent contractor drivers, such as Door Dash and Uber drivers, have the opportunity to deduct various business expenses to lower their tax liability.
01:15FICA taxes, including social security and Medicare payments, are a significant tax burden for self-employed individuals.
05:28Vehicle expenses, such as mileage and actual expenses, can be substantial tax write-offs for independent contractor drivers.
07:44Parking fees and toll expenses incurred while delivering can also be deducted as business expenses.
08:48Cell phone costs directly related to business purposes can be deducted as a business expense.
09:49Health insurance premiums can be tax-deductible for self-employed drivers.
10:37Supplies used by drivers, such as insulated courier bags, can be deducted as business expenses.
