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Question on gas mileage deductions for 1099-NEC self employment

Hello, I earned over $2,000 in gas mileage deductions to be included in this year's tax break for being a self-employed worker for Doordash. However, when I enter the information Turbotax needs for this deduction and I submit it, my federal income tax compensation number drops significantly. This doesn't make any sense to me considering that I filed a W-2 with my main job and the expected tax return from that is over $800. 

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1 Reply
JamesG1
Expert Alumni

Question on gas mileage deductions for 1099-NEC self employment

I think you are saying that the $2,000 'gas mileage deduction' exceeded your reported self-employment income and generated a self-employment loss.

 

Then the self-employment loss reduced your total income.  Is this correct?

 

For example, if your W-2 income was $30,000 and your self-employment income reported from DoorDash was $1,000, your total income reported was $31,000.

 

After your enter the $2,000 standard mileage deduction or 'gas mileage deduction', your total income reported would be $29,000.

 

Is this what you are experiencing?  What changes are you seeing in your tax return refund after entering the standard mileage deduction?

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