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Should I track my miles driving for doordash on the side? I will probably drive less that 5000 miles a year but not sure if it is worth the time.

 
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2 Replies
rjs
Level 15
Level 15

Should I track my miles driving for doordash on the side? I will probably drive less that 5000 miles a year but not sure if it is worth the time.

The standard rate for business mileage for 2019 is 58 cents per mile. That means that 5,000 miles would reduce your taxable income by $2,900. If you're in the 22% tax bracket, plus an effective self-employment tax rate of about 12.58%, that saves you over $1,000 in tax. Whether it's worth the time to keep track of it is your call.

 

If you are eligible for the Earned Income Credit (EIC), you must keep track of your mileage and claim all your business expenses.

Should I track my miles driving for doordash on the side? I will probably drive less that 5000 miles a year but not sure if it is worth the time.

and even if you are not eligible for EIC,  you are still required to claim all self-employment expenses.

Rev. Rul. 56-407 held that under §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.

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