You ever filed taxes working for Doordash or any delivery app with FreeTaxUsa? New Freetaxusa user

Question

Hey, I'm currently new with FreeTaxUsa. I've driven for Doordash for a year(2024 only) and i need help knowing what to EXPECT to be ask in the process of filing . Pls provide information here. I'm kind of worried cause u have to calculate those miles driven and add deductibles expenses. Does freetaxUsa ask for those informations when filing?  And I didn't track my miles from the first month and a half (June 14 to august 11) but i only tracked my last month(December) of the year. However, i'm waiting till january 31st, 2025 for doordash to send the 1099 form and report of calculated miles i drove for each deliveries(hopefully it's accurate) as they said they would. I made only 2106.77 with them so i don't owe federal tax and won't likely owe georgia state tax.   Pls helping me would be appreciated.

What do i expect when i file the tax?

How will freetaxusa helps miles and deductibles expenses?

Will they be accurate when filing?

What would happen if they end up being wrong? do they take responsibilty for it?

KeriC · Answer

@freelanceLV

The software asks if a vehicle was "used for hire" because it affects how you can deduct vehicle expenses, especially for depreciation limits, standard mileage rate eligibility, and business classification.

Vehicles used for hire (except taxis) are not eligible for the standard mileage rate. Instead, drivers must use the actual expense method, which requires tracking gas, maintenance, insurance, etc.

“Used for hire” is part of how the IRS distinguishes between:

* A general business using a vehicle (like DoorDash, real estate agents, etc.) - NOT used for hire
* A transportation business (like Uber, Lyft, taxi services, or trucking companies) - Used for hire

So, it’s about making sure taxpayers are using the right method and getting deductions you actually qualify for based on how the vehicle is used.

If you contact Support while logged into your account, they are able to help with more specific questions about your situation.

freelanceLV · Answer

https://community.freetaxusa.com/discussion/comment/3857#Comment_3857

Is there any information that specifically addresses Doordash? It is not a "rideshare" business (or taxi service for hauling people or property) like is discussed in the article you linked. There is a FreeTax question while filling out the tax information regarding "business vehicle used for hire" without adequate information to know what to choose for Doordash delivery driving income.

KristineS · Answer

Hi swervymervy,

Welcome to FreeTaxUSA!  Thanks for using our software and joining our Community.

Check out IRS Tax Topic 510, Business use of car. Lots of good general info there to start.

Here too, is a great article on this topic inside our Community.

In our software you'll report the miles you drove for Doordash on Schedule C, along with your income and other expenses. You'll follow this menu path to start: Income > Business Income > Business Income (Schedule C). Income reported on a 1099-NEC is considered self-employment/business income.

For vehicle expenses, including mileage, you have one of two options to choose: the standard mileage deduction, which is a set amount per mile driven you can deduct, or actual expense.

Actual expense will allow you to claim a portion of your related expenses such as gas, oil changes, car maintenance, etc., plus some vehicle depreciation, based on a percentage of use for business. The software will calculate all this information based on what you enter. No need for you to do the math, and the prompts will guide you. The math will be 100% accurate, "All of our calculations are guaranteed accurate" based on what you enter.

Vehicle expenses are claimed under the Expenses and Assets section on the "Your Business <name of business>" screen after entering general information on your car and your business (Doordash) income. The prompts ask you to enter information about your car (make, model, year), miles driven and so forth. If you didn't track all your miles that's unfortunate. If Doordash is providing that information for you, you'll want to be very certain or as certain as you can be the number of miles driven is accurate. If you're continuing Doordash work in 2025, now is a great time to a) write down your beginning odometer reading, and b) start tracking your miles. You can use an app, write it all down on a piece of paper, or use an Excel spreadsheet.

You're always responsible for the accuracy of the information you enter on your tax return, and should the IRS request proof or additional information about what you enter, you should be prepared to provide it according to their standards. The IRS may or may not accept what Doordash has provided since that is their record, not yours. I recommend you keep your own separate records.

The IRS standard for claiming vehicles expenses, often called a mileage log, generally includes the following: amount of miles driven for each business-related trip, the date and time each trip took place, the destination for each trip, and the business-related purpose for traveling to this destination.