Tax Tips6 min read

Tax Guide for Food Delivery Drivers: DoorDash, Uber Eats, Grubhub

Maximize your earnings as a food delivery driver by understanding taxes, deductions, and financial best practices.

SM

Sarah Mitchell

Tax Specialist · May 8, 2024

Food Delivery Driver Tax Essentials

Delivering for DoorDash, Uber Eats, Grubhub, or other platforms? Here's what you need to know about taxes.

Your Tax Status

As a delivery driver, you're self-employed:

  • Independent contractor (1099)
  • Responsible for self-employment tax (15.3%)
  • Must pay quarterly estimated taxes
  • Can deduct business expenses

    • Tax Forms You'll Receive

    1099-NEC

  • Non-employee compensation
  • If earnings exceed $600

    • 1099-K

  • Payment card transactions
  • Threshold: $600 in 2024

    • The Big Deduction: Mileage

    Standard Mileage Rate (2024): 67 cents/mile

    Deductible Miles:

  • Driving to restaurant
  • Restaurant to customer
  • Between deliveries
  • NOT: Home to first delivery or last delivery to home

    • Example:

  • 15,000 business miles
  • x $0.67 = $10,050 deduction

    • Other Deductible Expenses

    Phone and Data

  • Business use percentage
  • Phone mounts and chargers
  • Power banks

    • Delivery Supplies

  • Insulated bags (if you bought them)
  • Hand sanitizer
  • Flashlight

    • Vehicle Costs (if using actual expense method)

  • Gas
  • Maintenance
  • Insurance
  • Repairs

    • Mileage Tracking Tips

    Track from Day One

  • Use an app (like GigTracker)
  • Log every delivery trip
  • Note the purpose

    • What to Record:

  • Date
  • Starting and ending locations
  • Business purpose
  • Miles driven

    • Multi-App Strategies

    Many drivers use multiple apps:

  • Track income from each separately
  • Keep unified mileage log
  • Note which app for each trip

    • Quarterly Taxes

    Due Dates:

  • April 15
  • June 15
  • September 15
  • January 15

    • How Much:

  • Estimate 25-30% of net profit
  • Pay to avoid penalties

    • Maximizing Your Take-Home

  • Track every mile
  • Log all expenses
  • Set aside taxes immediately
  • Pay quarterly to avoid penalties
  • Consider a tax professional

    • GigTracker's automatic mileage tracking is perfect for delivery drivers working multiple platforms.

    Tags

    #food delivery#DoorDash#Uber Eats#taxes#mileage

    Share this article

    Share on TwitterShare on LinkedIn

    Ready to take control of your gig finances?

    Join thousands of gig workers who use GigTracker to manage their income, expenses, and taxes.

    Get Early Access

    Get the latest gig economy tips

    Subscribe to our newsletter for tax tips, productivity hacks, and industry insights delivered to your inbox.

    Related Articles

    View from inside a car on the road
    Tax Tips8 min read

    Tax Guide for Rideshare Drivers: Uber, Lyft, and Beyond

    Everything rideshare drivers need to know about taxes, from deductible expenses to filing requirements and common mistakes.

    SM

    Sarah Mitchell

    July 25, 2024

    Read more →
    Calculator and tax documents on a desk
    Tax Tips8 min read

    The Ultimate Guide to 1099 Taxes for Gig Workers in 2024

    Everything you need to know about filing taxes as a freelancer or gig worker. Learn about deductions, quarterly payments, and how to avoid common mistakes.

    SM

    Sarah Mitchell

    November 15, 2024

    Read more →
    Modern home office setup with laptop
    Tax Tips6 min read

    Home Office Deduction: Complete Guide for Gig Workers

    Maximize your home office tax deduction with this comprehensive guide covering requirements, calculation methods, and common mistakes.

    SM

    Sarah Mitchell

    August 18, 2024

    Read more →