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I am an independent contractor. I also receive disability income, which is not enough so I have found a way to work, and stay Social Security compliant, by being an independent contractor. That way SSA looks at my net income on my 1040 for Substantial Gains Activity, instead of my gross, as with a W2. I don't have to report earning monthly either, but rather annually. Therefore expenses are important to me in remaining compliant as I work. As an Instacart Driver, and Brand Ambassador, I get to deduct the following expenses - portions of utilities, internet, cell phone, mortgage, association fees, uniforms, mileage (some car maintenance, unsure), and supplies.
1. Does this sound correct so far? I filed this way last year and everything went fine.
2. I use a mileage tracker on my phone, Everlance. It gives me reports of mileage expenses already calculated each month. Expensing this, does that exclude any maintenance on the car, including big expense related to driving (Instacart)? I spent $ 6000 on my car in repairs this year.
3. Any advice? I have receipts and worksheets for every month very neatly organized and digitized.
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I think you are doing a terrific job of understanding how expense management and support can reduce your net income form self employment, which will help ensure your disability income doesn't get taxed or reduced.
I have nothing to add to your approach.
Well done!
Kelly C.
CPA
Thanks so much. I appreciate your advice. I am very well prepared and organized this tax year.
Warm Regards
Kevin
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