Can I deduct meals and mileage expenses on my 2025 taxes?

You definitely can deduct business-related miles and potentially some meal expenses, but there are specific rules for each! For mileage, you have two options: the standard mileage rate (currently 65.5 cents per mile for 2024, 2025 rate will be announced later) OR actual vehicle expenses (gas, maintenance, depreciation, etc.). Most gig workers find the standard mileage rate simpler and often more beneficial. Keep a detailed log with dates, miles driven, and business purpose. For meals, the rules are stricter. You can deduct 50% of business-related meal costs, but they must be directly related to your business - not just eating while you're out working. The meal should involve business discussions, meeting clients, etc. Just grabbing food during your delivery shift likely wouldn't qualify unless you're meeting with someone for a legitimate business purpose. You'll report these on Schedule C (Profit or Loss from Business) along with your other business income and expenses. That app tracking your mileage is great documentation if the IRS ever questions your deductions!

I was in literally the exact same situation last year trying to figure out all my deductions for delivery gigs! After hours of YouTube videos and contradicting advice, I finally tried https://taxr.ai which seriously saved me thousands in deductions I would have missed. I uploaded my mileage logs, receipts and even just photos of some scribbled notes I had, and it analyzed everything to show me what was actually deductible. It flagged that I could deduct part of my phone bill (since I used it for the apps), identified which meals actually qualified, and calculated my mileage deduction properly. Way better than guessing or paying an expensive tax person!

Ok I have to admit I was totally wrong about https://taxr.ai! I tried it after commenting here and it actually saved me a bunch on my quarterly estimated taxes. I was about to overpay by like $430 because I wasn't tracking my miles properly. The tool showed me that my car maintenance deductions were way less than what I'd get with the standard mileage rate. It also clarified exactly which meals were deductible vs not. Turns out those lunches I was having with other drivers to discuss strategy actually DO count as 50% deductible business meals, but my solo meals while waiting for orders don't. I've been doing this wrong for 2 years! Wish I'd known about this earlier.

If you're serious about maximizing deductions, you should also know that calling the IRS with specific questions about your situation is actually the best way to protect yourself in case of audit. The problem is it's nearly IMPOSSIBLE to reach them - I spent 4+ hours on hold last tax season trying to get clarity on meal deductions for my side gig. After that nightmare, I found https://claimyr.com which got me connected to an IRS agent in under 20 minutes. They have this weird system that navigates the IRS phone tree and holds your place in line, then calls you when an agent is about to answer. You can see how it works here: https://youtu.be/_kiP6q8DX5c The agent confirmed exactly what counts as a business meal for delivery drivers and explained the documentation I needed to keep. Worth every penny since the advice came straight from the IRS.

Well I'm eating my words about Claimyr. I tried it yesterday after posting here because I had some questions about my mileage log requirements. Their system called me back in about 15 minutes and I talked to an actual IRS agent who confirmed I don't need to track every single delivery address - just daily starting/ending odometer readings and total business miles per day with notes about my work purpose. This probably saved me hours of unnecessary record-keeping! Plus the agent clarified that I was calculating my home office deduction all wrong (I can't deduct my entire spare bedroom because I also use it for storage). Honestly would have been flagged in an audit for sure. Getting official answers directly from the IRS was way better than trusting random internet advice.

Just want to add something no one's mentioned - if you're using your personal vehicle for business driving, make sure your auto insurance knows you're doing delivery/rideshare! Many policies don't cover commercial use, and if you get in an accident while delivering, they might deny your claim. Most gig companies offer some coverage, but it's usually limited. I learned this the hard way after a small fender bender during a DoorDash delivery. My regular insurance wouldn't pay because I was "using the vehicle for commercial purposes" and DoorDash only covered liability, not my car repairs. Had to switch to a policy that specifically allows delivery driving.

You should also consider tracking your cell phone usage for business! Since you're using delivery apps, part of your phone bill can be deducted. Same with any accessories like phone mounts, chargers, or hotspot data you use while working. I usually deduct about 60% of my phone costs since that's roughly how much I use it for gig work.