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?

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.

519

Expert Alumni

Feb 2, 2022 5:58:06 PM

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?

New Member

Feb 4, 2022 10:01:15 AM

Great, thank you! 🙂

Why sign in to the Community?

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?