Key takeaways
Everything from mileage to cellphone charges can be tax-deductible for delivery drivers.
Keep track of expenses on a daily or weekly basis to ensure you don’t miss anything.
Calculate gross revenue and expenses to determine how much money you’re actually making.
Gig work is great, but income from these sources comes tax-free. Unlike a W-2, where your employer deducts income taxes before the net pay gets to you, gig work does not deduct these taxes — meaning you could owe the IRS when you file your return if you’re not paying attention.
Instead of being overwhelmed searching for old receipts and pay stubs once a year, here’s how you can track, and what you should track, to make everything easier for gig work like Uber and DoorDash.
Expenses to track as a gig worker
Come tax season, make sure you know these figures:
Where your money came from: Keep a running log of rideshare pay, delivery earnings, tips, and bonuses from the apps.
How much you spent on your car: This includes how many miles you drove for delivery or rideshare services (using the standard IRS mileage rate), plus gas, maintenance, and insurance.
Other gig-related expenses: Since you will be reporting this activity as a side gig, you can deduct the costs as part of your self-employment activity, including expenses such as cellphone costs, delivery gear, tolls, and parking.
How you should track expenses driving for Uber and DoorDash
The easiest way to have these expenses ready for tax season is by tracking them year-round. Some or all of these strategies might work for you:
Set up a separate bank account or card just for business expenses. Using dedicated accounts or cards for gig work makes tracking costs easier and bookkeeping easier to manage.
Log expenses and income weekly. Spend about 20 minutes each week reviewing expenses on Uber and DoorDash. You’ll also want to note income made from gig work each week. Whether you use a spreadsheet, an app, or pen and paper, consistency matters more than the tool.
Build simple habits that make tracking effortless. Waiting weeks to remember expenses rarely works. Instead, snap photos of receipts before leaving the parking lot, log tolls and parking on the same day, and note any additional expenses before leaving your car at the end of each shift.
Choose one system and commit to it. Sticking with the same method all year helps avoid gaps, errors, and unnecessary confusion.
Pay attention to both gross and net income. Gross earnings can look impressive, but net income tells the real story. Subtract expenses and estimated taxes from your total pay to understand what you’re actually taking home. Be sure to account for self-employment taxes that may need to be paid quarterly.
How to make sure you don’t miss out on deductions
Keeping track of gig work income and expenses can feel like a chore, but it could pay off big time come tax season. Discover all the deductions you’re missing out on with TurboTax’s Self-Employed Tax Deductions Calculator. Estimate self-employment taxes, figure out what you can deduct, and eliminate any unwanted surprises when you submit your return.
TurboTax makes it easy to file with confidence.
