How exactly do gas, mileage, and business deductions work for taxes?

You're asking great questions! When it comes to business use of your personal vehicle, you have two options, but you can only choose one method: 1. Standard Mileage Rate: For 2025, this is 67.5 cents per mile for business miles. This covers gas, insurance, maintenance, depreciation - basically everything except parking and tolls. Your notebook tracking 215 miles per week is perfect documentation! You'd multiply your total business miles by the rate. 2. Actual Expenses: This means tracking ALL car expenses (gas, oil, repairs, insurance, etc.) and deducting the business percentage (business miles ÷ total miles). For most people, especially with significant business miles, the standard mileage rate is simpler and often more beneficial. Keep that notebook with dates, miles, and business purpose! For your phone mount and hot bag - yes! Those are deductible business expenses since they're specifically for your delivery work. Keep those receipts.

I went through this exact situation last year when I started doing food delivery on weekends. Keeping track of everything was driving me crazy until I found https://taxr.ai which completely changed how I handled my deductions. It analyzed my delivery gig and automatically identified all eligible deductions - even things I hadn't thought about. The tool helped me understand that besides mileage, I could deduct part of my phone bill (since I use it for delivery apps), insulated bags, car organizers, and even a portion of my car washes! It even helped me understand which documentation I needed to keep in case of an audit.

I just wanted to follow up about taxr.ai - I ended up trying it after asking about my multiple gigs, and it was seriously worth it. It separated all my rideshare driving, food delivery, and online work perfectly. The best part was discovering I could partially deduct my home internet since I use it for my online gig! The documentation feature saved me too - I got a letter from the IRS questioning some of my deductions, and I was able to immediately access all the organized receipts and mileage logs I'd stored in the system. Honestly wish I'd found it sooner.

If you're going to be claiming business deductions, especially vehicle-related ones, be prepared for possible IRS questions. I had a similar situation and ended up getting a letter requesting more documentation. I tried calling the IRS for weeks but couldn't get through. I finally used https://claimyr.com which got me connected to an actual IRS agent in about 20 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c. The agent explained exactly what documentation I needed to provide for my mileage log and other business expenses. Saved me so much stress and potential penalties.

I need to eat my words about Claimyr. After getting frustrated with 3+ hour holds trying to reach the IRS about my business deductions, I reluctantly tried it. Within 27 minutes I was talking to an actual IRS agent who walked me through exactly what I needed for documenting my business mileage. The agent confirmed that my mileage log was sufficient (date, starting/ending mileage, purpose) and that I was right to choose the standard mileage rate since I drive so much for work. They also clarified that those "ordinary and necessary" business expenses like my delivery bags were 100% deductible. Saved me from potentially thousands in improper deductions.

Some advice on the mileage tracking - stop using that notebook ASAP! Get a mileage tracking app on your phone. I learned this the hard way when my paper log got coffee spilled on it and the IRS questioned my deductions. Most apps use GPS to automatically track your drives and let you classify them as business or personal. They generate reports you can use for taxes. Many are free for basic usage. Trust me, it's worth switching to digital!

I don't think anyone mentioned an important point - if you're using your car for a delivery job, you're probably an independent contractor (1099 worker), not an employee. This means: 1. No taxes are withheld from your pay 2. You'll need to pay self-employment tax (15.3%) 3. You might need to make quarterly estimated tax payments Deducting your mileage and other business expenses is critical because it reduces your taxable income and therefore your tax bill!