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 · ‎February 2, 2022

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 · ‎February 2, 2022

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?

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missjessica47 · ‎February 4, 2022

Great, thank you! 🙂

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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?