Can I write off my car payments while working for Door Dash?
In Oregon, what specifically can I write off while driving for door dash? Gas with receipts? How do I calculate mileage? Can I write off my car payments? The cost of extra insurance coverage? My cell phone bill and other hands free accessories such as car phone mounts and chargers? Please help explain this in exact detail.
Answers
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Hi,
You may deduct car expenses and the interest on the car loan, but you do not write off the whole car payments.
When you begin your Business Income Schedule C in the software, visit the "Vehicle Expenses" section, which will guide you on what to enter for write-offs.
Often Door Dash will provide you a mileage report for all your deliveries in 2024. Otherwise, you should keep track of your miles. Use a phone app.
You may write off part of your cell phone bill. Use a ratio of business use. For example if you use it 60% for business, then write off 60% of the total bill. You can write off supplies used in your business like the phone mount and chargers.
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Most people who Door Dash use the standard milage rate to write-off on their tax return. You only need to track your miles. You will be given a standard rate .67/mile as a writeoff. You cannot write off gas, car paymets, car insurance, repairs/maint as the .67/mile covers that.
Your door dash app may track mileage for you. If not, it is your resposibility to track miles. There are apps to help you track.
If you bought hands-free car mounts and other accessories for your Door Dash job, you can write those off on your Schedule C. Many people also figure out a % of business cell phone use for their Door Dash vs personal use. Then they write off the businesss % of cell phone bill.
