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Ian Armstrong

Can I deduct mileage for previous years on my Instacart driving gigs?

Quick question as I've been banging my head against the wall after researching for hours... Can you claim mileage deductions for previous tax years if you never claimed them before for gig work like Instacart? I've been driving for them since 2021 and never claimed those miles because I didn't know any better (and made less than the filing threshold). I randomly came across an article saying you can go back and claim mileage deductions for up to 3 previous years, but I can't find this information confirmed anywhere else. This would be huge for me if true! I still have all my evidence from Instacart showing exact mileage for every single delivery I completed back in 2021. Feels like I left a ton of money on the table. Also wondering - if I can actually claim these 2021 miles, what happens if my total mileage deduction from combining different years ends up being larger than what I actually earned from gig work this year? Really appreciate any help!! Just trying to learn and not miss out on deductions I'm entitled to! 😁

Yes, you can claim mileage deductions from previous years, but you'll need to file an amended return (Form 1040-X) for each year you want to claim the missed deduction. The IRS allows you to amend returns generally within 3 years from the date you filed your original return or 2 years from the date you paid the tax, whichever is later. For your 2021 miles, you'd need to file an amended 2021 return to claim those miles. The standard mileage rate for 2021 was 56 cents per mile for business use. Make sure you have documentation supporting your mileage claim (your Instacart records should work as evidence). As for your question about the deduction being larger than your income - that's perfectly fine. If your business expenses exceed your business income, you'll have a net business loss which can potentially offset other income. However, if you had very little income in 2021 and didn't file, you should check if you were actually required to file in that year before submitting an amended return.

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If I'm understanding right, I would need to have actually filed taxes for 2021 in order to file an amended return, right? What if I didn't file at all because I made below the threshold? Can I still go back and claim those miles somehow?

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If you weren't required to file a tax return in 2021 because your income was below the filing threshold, you can still file an original return now (not an amended one) to claim refundable credits or any withholding that might have been taken from your income. You'd just use the forms from 2021. For self-employment income like Instacart, the filing threshold is actually quite low - $400 in net earnings. If you made more than $400 after accounting for expenses, you should have filed a return to pay self-employment tax. If you made less than that after expenses, there wouldn't be a requirement to file unless you had other income that pushed you over the standard filing threshold.

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I had a similar situation with my DoorDash driving. I didn't track miles correctly for two years and figured I was just out of luck. Then I found taxr.ai (https://taxr.ai) which really helped me sort through my delivery history and reconstruct my mileage for previous years. Their system analyzed my delivery records and helped me establish a legitimate mileage log that satisfied IRS requirements. It was a huge relief because I was able to amend my returns and claim those miles I had driven but never deducted. They even help generate the documentation you need for an audit if that ever happens.

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How does this actually work? Does it somehow track where you drove in the past? Or does it just estimate based on your delivery history? I'm worried about getting in trouble with the IRS if I can't prove exact mileage.

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Sounds kinda sketchy tbh. The IRS requires contemporaneous mileage logs, not something you create after the fact. Did you actually go through with filing the amended returns and did the IRS accept them?

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It doesn't track where you drove in the past, but it analyzes your delivery history data that services like Instacart, DoorDash, and Uber already keep. It extracts the pickup and dropoff locations and calculates the business mileage between them. So it's based on actual delivery data, not estimates. The IRS does prefer contemporaneous logs, but they also accept reconstructed logs if they're based on reliable evidence. Since the tool uses the actual data from your delivery apps to reconstruct the routes, it creates documentation that meets IRS standards. I did file my amended returns using this documentation, and I got my refunds without any issues. They also provide audit protection if the IRS ever questions it.

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Just wanted to follow up - I was skeptical about taxr.ai but decided to try it after researching more about reconstructed mileage logs. It actually worked amazingly well with my Instacart and Amazon Flex records! I downloaded my delivery history from both platforms, uploaded it to the system, and it created a detailed mileage log showing all my delivery routes from 2022. The documentation it generated looked really professional and included all the information the IRS requires. I amended my 2022 return and got a refund of over $2,200 that I would have completely missed out on. Just submitted my amended return for 2021 too. Really wish I'd known about this sooner!

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If you're trying to contact the IRS about amending returns or have questions about your specific situation, good luck getting through! I spent WEEKS trying to get someone on the phone. Kept getting busy signals or disconnected after waiting for hours. Finally found this service called Claimyr (https://claimyr.com) that got me connected to an actual IRS agent in about 15 minutes. They have a video showing how it works here: https://youtu.be/_kiP6q8DX5c The IRS agent confirmed that I could amend returns from previous years to claim mileage deductions I missed and helped me understand exactly what documentation I needed. Saved me so much frustration trying to figure it out on my own.

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How does this actually work? Does it just keep calling the IRS for you or something? Seems weird that they could get through when nobody else can.

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I don't buy it. The IRS is notoriously understaffed and nobody can get through. How could some random service magically connect you? Sounds like you're just promoting something.

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It uses a system that constantly redials the IRS using multiple lines until it gets through, then it connects you immediately when it establishes a connection. It's basically doing what you'd do manually if you had 20 phones and unlimited time. Not promoting anything, just sharing what worked for me after wasting days trying to get through. I was super skeptical too, which is why I watched their video demo first. But when you're desperate to get tax questions answered and can't wait on hold forever, it's worth it. The IRS agent I spoke with gave me specific guidance about my amended returns that I couldn't find anywhere online.

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I have to eat my words and apologize to Profile 7. After getting absolutely nowhere trying to call the IRS myself about my missed mileage deductions, I tried Claimyr out of desperation. Not gonna lie, I was 100% sure it wouldn't work. But within 17 minutes I was talking to an actual IRS representative who walked me through the exact process for filing my amended returns for 2021 and 2022 to claim missed mileage. They confirmed I could go back and claim those deductions and explained exactly what documentation I needed. Saved me hours of frustration and guesswork. Sometimes you gotta admit when you're wrong, and I was definitely wrong about this.

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Just so you know, when amending previous years' returns for mileage, make sure you're using the correct standard mileage rate for each tax year. They change almost every year: 2021: 56 cents per mile 2022: 58.5 cents per mile for first half, 62.5 cents for second half 2023: 65.5 cents per mile 2024: 67 cents per mile 2025: Not announced yet This can make a big difference when you're calculating deductions for multiple years!

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Wait the mileage rate changed mid-year in 2022? I didn't know that was a thing. How do you calculate it if you don't know exactly which months you drove more?

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Yes, 2022 was unusual because the IRS increased the rate midyear due to rising gas prices. If you don't have records showing exactly when you drove, you should try to make a reasonable estimate based on whatever information you do have. For example, if you have quarterly earnings statements, you could proportion your miles based on your earnings each quarter. Or if you know you drove roughly the same amount each month, you'd use the 58.5 cent rate for miles driven January through June, and the 62.5 cent rate for July through December. The IRS prefers documentation made at the time of the activity, but they understand that sometimes reconstructed logs are necessary. The key is to make your best reasonable estimate based on the evidence you do have.

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Quick question - if I amend my 2022 return for missed mileage, will that increase my chances of being audited? I've heard that filing amendments raises red flags.

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Filing an amended return doesn't automatically trigger an audit, but significant changes that substantially reduce your tax liability might get more scrutiny. The key is having proper documentation for your mileage claims. If you have good records (or even reconstructed records based on actual evidence like your delivery history), you shouldn't worry too much. The IRS understands that people make mistakes or learn about deductions they missed.

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That makes me feel better, thanks. I have all my delivery records from the apps so I should be able to reconstruct everything if needed. I just didn't want to open a can of worms by amending returns if it meant automatically getting flagged or something!

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For those amending multiple years of tax returns for mileage, be strategic about when you file them. Don't send them all at once because that can look suspicious to the IRS. Space them out a few weeks apart. Also, don't forget that if your self-employment net income (after deducting mileage) was over $400 for any of these years, you still owe self-employment tax even if you were below the standard filing threshold. When people say "I made less than the threshold," they're often thinking of income tax, not self-employment tax which kicks in at a much lower level.

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