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New Member
posted Jan 12, 2025 8:04:38 AM

Am I required to take milage deduction when filing if I doordashed? I Don't want to take the deduction.

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7 Replies
Level 15
Jan 12, 2025 8:15:31 AM

If you worked as a DoorDash driver, you have self-employment income and you must enter your business expenses.  It would be foolish to forgo entering your mileage---why would you want to skip entering that?

 

If you have self-employment income for which you will pay self-employment tax for Social Security and Medicare,  you will need to use online Premium software or any version of the desktop software download so that you can prepare a Schedule C for your business expenses.

 

 

DOORDASH, INSTACART, GRUBHUB, ETC.

 

https://turbotax.intuit.com/tax-tips/self-employment-taxes/filing-taxes-for-on-demand-food-delivery-drivers/L7dIkSK6I

 

 

https://ttlc.intuit.com/questions/2926899-how-does-my-side-job-affect-my-taxes

 

 

https://ttlc.intuit.com/turbotax-support/en-us/help-article/form-1099-nec/1099-nec/L5qTsBiSe_US_en_US

 

https://ttlc.intuit.com/community/self-employed/help/how-do-i-report-income-from-self-employment/00/26653

 

https://ttlc.intuit.com/community/self-employed/help/what-is-the-self-employment-tax/00/25922

 

https://ttlc.intuit.com/questions/2902389-why-am-i-paying-self-employment-tax

https://ttlc.intuit.com/questions/1901340-where-do-i-enter-schedule-c

 

 

https://ttlc.intuit.com/questions/3398950-what-self-employed-expenses-can-i-deduct

 

 

https://blog.turbotax.intuit.com/self-employed/self-employed-tax-deductions-

calculator-2021-2022-50907/

 

https://ttlc.intuit.com/questions/1901110-do-i-need-to-make-estimated-tax-payments-to-the-irs

 

 

If you live in a state with a state income tax, you might need to make estimated payments to your state.

 

 

https://turbotax.intuit.com/tax-tools/calculators/self-employed/

 

https://ttlc.intuit.com/community/business-taxes/discussion/self-employed-don-t-miss-these-tax-moves/00/3400413

 

Level 15
Jan 12, 2025 9:02:52 AM

Why don't you want to take the deduction?

 

Generally, you are expected to deduct your ordinary and necessary expenses.  If you skip the expenses so you can show a higher income to qualify for some tax credit (like the child tax credit, EITC, or IRA contributions) that can be tax fraud.   And if inflating your income does not change your tax, it could still be bank fraud. 

 

Story time: A person I know is a delivery driver, and was applying for a mortgage.  The bank said his income was too low -- let's say he grossed $40,000 and had $20,000 worth of mileage, showing net income of $20,000.  Even though the mileage deduction improved his cash flow, the bank was (stupidly in my opinion) looking at the net income.  If this person decided to file, leaving the mileage off his return to show a "higher" income, it would not necessarily be tax fraud, but it could be mortgage fraud.  So he smartly found another bank that was willing to work with him.  

 

 

New Member
Jan 12, 2025 9:03:04 AM

I appreciate the response. 

I know how to do it, thanks. As far as foolish not to.. well, if I don't I earn ea higher earned income credit,which, in return gives me a higher return.  So, I wanted to know if I'm required to take the deduction 

New Member
Jan 12, 2025 9:09:08 AM

Thanks yes again by not taking the deduction I have higher earned Income thus resulting In better eic, and head of household giving me higher return

Level 15
Jan 12, 2025 9:35:27 AM


@cox7862 wrote:

Thanks yes again by not taking the deduction I have higher earned Income thus resulting In better eic, and head of household giving me higher return


Here's an FAQ that applies,

I know taxpayers need to report all income, but what about expenses? What if the client doesn't want to claim business expenses to keep their earned income higher and qualify for more EITC? 

 

Revenue Ruling 56-407 PDF, 1956-2 C.B. 564, held that under IRC § 1402(a), every taxpayer (with the exception of certain farm operators) must claim all allowable deductions in computing net earnings from self-employment for self-employment tax purposes. Because earned income for EITC must include net earnings from self-employment under IRC § 1402(a), the ruling applies equally to the EITC.

 

 

New Member
Jan 12, 2025 10:14:32 AM

Thanks, that's what I needed to know. 

Level 15
Jan 12, 2025 1:00:21 PM

However, that doesn't necessarily mean you need to use the Standard Milage Rate.  If you claim Actual Expenses for the vehicle, in some cases your deduction would be lower than using the Standard Milage Rate, which in your case could possibly be beneficial.