I did doordash in '21 PT. Car was totaled at the end of '21 and got a payout from the insurance company. I used the money to buy a new car. How do i account for this?

[missjessica47]

Can someone tell me if I need to account for this or not and explain it to me?  I am pretty confused about it.  I drove part time in 2021 but made a considerable amount - 15,000.  I worked a few different jobs in 2021.

[AliciaP1]

The best thing to do is report your doordash income as self-employed income then you can take a mileage deduction for your car.  The insurance settlement is not income to you unless you have been reporting depreciation on your returns in previous years.

A helpful guide to reporting expenses against your doordash income is What self-employed expenses can I deduct? 

[missjessica47]

Great, thank you! 🙂