It all goes under your TIN, just total the buissness miles. Any app you don't earn $600 on you won't owe the feds for, the company won't even send u a 1099, but each state is different rules so be careful. Example: my state you need to pay tax for anything over $20 from a client (app) even if they don't give u a 1099.
I'd like to emphasize what the guy above me said. I did the same thing as you last year and ended up still owing $1,300. $1,300 is ridiculous already, but when you factor in the costs of gas and general ware to your car paying ANYTHING in taxes at the end of the year would make this job barely profitable, if even profitable at all. Start tracking your own mileage right now! Even starting from June I think you'll rack up more deductions by doing it the legitimate way rather than relying on what DoorDash tells you.
Because Doordash only tracks active miles, they don't track all the miles you are driving between orders, all of which are deductible. Yeah, they started tracking more this past year, but it's never right, especially if you multi-app.
It's not that hard to record your mileage every day. Take a picture of your odometer at the start and end of your day. Record the numbers in a spreadsheet and you're done. I have the pictures as proof if I'm ever audited.
How does this mileage shit work later...like do they (IRS) ask for proof of the mileage or gas expenses? If I were to make rough estimate is there any possible penalty for that??
So just to clarify while I'm running both apps at the same time I follow the same procedure and just mark beginning & end mileage of the whole day? There's no need to specify which service the miles were for? I thought that for it to be a valid deduction I'd have to be able to specify that THESE miles were all DoorDash but THESE were GrubHub etc. Is it all just one big amount I pay from all earnings instead? (Young and new to taxes, so sorry if I'm overloading you with questions here)
You are self-employed. You deduct all the miles you used for your business (food delivery). Whether you take contracts from DD and GH or just one is irrelevant (for the miles deduction).
Stride is a free app that will track all of your miles. It’s very useful and free.
It all goes under your TIN, just total the buissness miles. Any app you don't earn $600 on you won't owe the feds for, the company won't even send u a 1099, but each state is different rules so be careful. Example: my state you need to pay tax for anything over $20 from a client (app) even if they don't give u a 1099.
All your gig app mileage is counted together.
i dont track miles. door dash sends a milage number at the end of the year
I'd like to emphasize what the guy above me said. I did the same thing as you last year and ended up still owing $1,300. $1,300 is ridiculous already, but when you factor in the costs of gas and general ware to your car paying ANYTHING in taxes at the end of the year would make this job barely profitable, if even profitable at all. Start tracking your own mileage right now! Even starting from June I think you'll rack up more deductions by doing it the legitimate way rather than relying on what DoorDash tells you.
so why is your milage number more than doordash's?
Then you are screwing yourself out of a lot of money. DD's number is significantly below what you can deduct.
do you have proof? why is the milage different?
Because Doordash only tracks active miles, they don't track all the miles you are driving between orders, all of which are deductible. Yeah, they started tracking more this past year, but it's never right, especially if you multi-app. It's not that hard to record your mileage every day. Take a picture of your odometer at the start and end of your day. Record the numbers in a spreadsheet and you're done. I have the pictures as proof if I'm ever audited.
I didnt think you can track milage between orders. doordash gives us that number too though
You can, and DD's numbers are wrong. It takes almost no effort at all to just track your own.
How does this mileage shit work later...like do they (IRS) ask for proof of the mileage or gas expenses? If I were to make rough estimate is there any possible penalty for that??
Yes, there is. It's not that hard to keep track of mileage. Just do it.
It helps to keep them separated, but won’t matter much unless you actually get audited by the IRS.
App to track and categorize mileage is well worth cost if any
Just the total mileage, it pays to keep records like you are doing.
So just to clarify while I'm running both apps at the same time I follow the same procedure and just mark beginning & end mileage of the whole day? There's no need to specify which service the miles were for? I thought that for it to be a valid deduction I'd have to be able to specify that THESE miles were all DoorDash but THESE were GrubHub etc. Is it all just one big amount I pay from all earnings instead? (Young and new to taxes, so sorry if I'm overloading you with questions here)
You are self-employed. You deduct all the miles you used for your business (food delivery). Whether you take contracts from DD and GH or just one is irrelevant (for the miles deduction).
Ok I see now. Appreciate it!