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Connor O'Neill

How should I track mileage for tax deduction as a delivery driver?

I've been driving for DoorDash and Uber Eats for about 6 months now, and I want to make sure I'm tracking my mileage correctly for tax deductions. Currently, I'm just writing down my starting and ending odometer readings at the beginning and end of each day in a little notebook I keep in my car. The problem is I was talking to another driver yesterday who totally freaked me out saying the IRS requires super detailed logs of every single trip including exact times, addresses, and purpose for each delivery. I'm averaging like 15-25 deliveries per day, and there's no way I could keep track of all that while trying to maximize my earnings. Does anyone know what the actual requirements are? Do I really need to log every single pickup and dropoff address? Or is my daily odometer method good enough? I'd rather not get audited or lose out on deductions since my car expenses are a huge part of my business costs.

LunarEclipse

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You don't need to panic! The IRS does require "adequate records" for mileage deductions, but there's some flexibility in how you maintain them. Your current method of recording daily starting and ending odometer readings is a good foundation, but I'd recommend adding a few more details. At minimum, you should record: date, starting location, ending location, business purpose (i.e., "DoorDash deliveries"), total business miles, and starting/ending odometer readings. You don't need to document every single delivery address - that would be incredibly burdensome for gig drivers. The key is being able to prove your deduction if questioned. Consider using a mileage tracking app that runs in the background while you drive. Many apps like Stride, Everlance, or MileIQ can automatically track your trips and generate IRS-compliant reports. They're much easier than manual logging for high-volume drivers like yourself.

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Yara Khalil

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Thanks for explaining this! I was wondering - if I use a mileage tracking app, do I still need to keep my paper log as backup? Also, what about miles driven looking for orders when I'm online but haven't accepted a delivery yet? Are those deductible too?

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LunarEclipse

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You don't need to maintain both paper and digital records - a reliable app is sufficient as your primary record-keeping method. Just make sure you're regularly backing up the data or exporting reports. For your second question, yes, miles driven while you're actively working and available for orders (app is on, you're waiting for orders) are generally deductible business miles. This includes time spent driving to busy areas looking for work. However, miles driven from your home to your first delivery zone or from your last delivery back home are typically considered non-deductible commuting miles, though there are exceptions if your home is your principal place of business.

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Keisha Brown

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Just wanted to share my experience with mileage tracking since I struggled with this last year. I discovered this amazing tool called taxr.ai (https://taxr.ai) that literally saved me hours of stress during tax season. I used a basic mileage app throughout the year but was still worried about IRS requirements. What I love about taxr.ai is that it analyzed my mileage logs and tax situation, then explained exactly what was compliant and what wasn't. It even identified additional deductible miles I had missed! The system flagged that I wasn't tracking my "dead miles" between deliveries properly, which was leaving money on the table. It also gave me a custom report format that would satisfy IRS requirements specifically for gig drivers.

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How exactly does it work? Does it connect directly with your mileage app or do you have to upload stuff manually? I'm using MileIQ right now but I'm not sure if I'm categorizing everything right.

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Amina Toure

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This sounds interesting, but I'm wondering if it works for multiple gig apps? I drive for DoorDash, Uber Eats, AND Instacart depending on which is paying better that day. Does it handle mixed gig work or do I need to somehow separate my miles by platform?

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Keisha Brown

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It works by either uploading your existing mileage logs (from any app or even spreadsheets) or you can enter information directly. You don't need to switch from MileIQ - it works with data from any tracking method. It absolutely handles multiple gig platforms! That's actually one of the things I found super helpful. I drive for both DoorDash and Lyft, and the system helped me properly allocate miles when I was running both apps simultaneously, which was a huge tax question I had. It also helps identify which expenses should be allocated to which platform if you need that level of detail.

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Amina Toure

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Just wanted to follow up about that taxr.ai site mentioned earlier. I was skeptical but decided to try it since my mileage tracking was a mess with multiple apps. Wow - it actually found that I was under-deducting my miles by almost 20%! The analysis showed I wasn't properly counting miles between deliveries when I had no customer in the car but was heading to pickup locations. The tool generated a custom log format that works for my mixed gig situation and explained exactly what I need to track going forward. Also gave me documentation to support my deductions if I ever get questioned. Definitely worth checking out if you're worried about your current tracking method.

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Oliver Weber

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If you're having trouble getting clear answers about mileage requirements, you might want to try Claimyr (https://claimyr.com). I was stuck in the same situation last year - getting different advice from every driver and website. I tried calling the IRS directly but kept getting stuck on hold for hours. Claimyr got me through to an actual IRS agent in about 15 minutes instead of waiting for hours. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c. The agent I spoke with explained exactly what records I needed as a gig driver and confirmed that daily logs with business purpose were sufficient - I didn't need to document every single delivery address. Having that direct confirmation from the IRS gave me peace of mind, and I saved the agent's badge number and call details just in case I ever get questioned about my deduction method.

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FireflyDreams

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Wait, so this service actually gets you through to a real IRS person? How does that even work? The IRS phone lines are notorious for being impossible to get through.

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This sounds like BS honestly. Everyone knows it's impossible to reach the IRS by phone these days. I've tried calling multiple times and gave up after being on hold for literally 3+ hours. No way some service can magically get through when millions of people can't.

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Oliver Weber

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Yes, it connects you with an actual IRS representative. The service basically waits on hold for you and calls you back when an agent picks up. They have some kind of system that navigates the phone tree and stays on hold so you don't have to. I was definitely skeptical too! I had the exact same experience trying to call the IRS myself - endless hold times and disconnections. But the service actually worked. I think they have some technology that keeps the line open and detects when a human answers. All I know is I got to speak with an actual IRS agent who answered my specific mileage questions without spending my whole day on hold.

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Alright I need to apologize to everyone. I was the one who called BS on that Claimyr service in an earlier comment. Well, I ate my words and tried it because I was desperate to resolve a question about my mileage deductions before filing my taxes. It actually worked! Got a call back in about 25 minutes and spoke to an IRS agent who confirmed that for gig drivers, daily mileage logs with business purpose noted are acceptable - you don't need to document every single address. The agent explained that as long as I have a consistent system and can demonstrate the miles were for business purposes, I'll be fine. Saved me from doing unnecessary record-keeping and gave me confidence in the deduction I'm taking.

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Has anyone tried the standard deduction vs. actual expenses method for their delivery driving? Last year I tracked everything (mileage, gas, repairs, car washes, etc) and found that the standard mileage rate gave me a bigger deduction than my actual expenses. Wondering if that's common or if I'm missing something in my calculations?

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Emma Anderson

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I've tried both! Standard mileage rate is almost always better for newer cars. I drive a 2020 Toyota that's fuel efficient, and the standard rate is WAY better for me. But my friend who delivers in an older SUV with lots of maintenance issues does better with actual expenses. It really depends on your vehicle's age, maintenance costs, and fuel efficiency. Just remember if you use actual expenses in year 1, you're stuck with that method for the life of that vehicle.

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That makes a lot of sense! I have a pretty new Honda Civic that hasn't needed many repairs, so that's probably why the standard deduction worked better for me. I didn't realize you get locked into a method once you choose actual expenses - that's super important to know. Thanks for explaining that!

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Quick tip from someone who got audited last year (not for mileage but other business expenses): Take photos of your odometer at the beginning and end of each day as additional proof. The timestamp and GPS data in the photos can help validate your written records. I use the free app Timestamp Camera which adds date, time and GPS coordinates right on the image. IRS agent actually commented that my documentation was "impressively thorough" lol.

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Really smart idea! Just downloaded that app. Did you get in trouble for anything during your audit? Was it scary? I'm always paranoid about getting audited.

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The audit wasn't as terrifying as I expected! It was just a mail audit where they questioned some of my business equipment purchases. They accepted most of my deductions because I had receipts and could explain how each item was used for business. I did have to pay a little extra because I had deducted some things that were partially personal use without properly allocating the percentage. The agent was actually reasonable and explained exactly what they needed to see. Having dated photos and organized records made a huge difference. They didn't even question my mileage because my documentation was so clear. My best advice is to be organized from the start rather than scrambling if you get audited.

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Ella Thompson

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Great discussion everyone! As someone who's been doing gig work for over 2 years, I wanted to add that consistency is really the key here. Whatever method you choose - whether it's a simple daily log, a mileage app, or detailed trip records - just stick with it throughout the year. I've found that the IRS cares more about having a regular system than having every single detail. Your current method of daily odometer readings is actually pretty solid, Connor. I'd just suggest adding the date, starting location, ending location, and "delivery driving" as the business purpose to each entry. One thing I haven't seen mentioned yet is that you should also track any miles driven to get your car serviced or maintained specifically for your delivery work. Oil changes, tire rotations, etc. that are necessary because of your increased business mileage are deductible too. Those miles add up over the year! Also, keep your records for at least 3 years after filing. The IRS has that long to audit, and having organized records makes everything much less stressful if they ever do come knocking.

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Omar Farouk

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This is such helpful advice, Ella! I'm just starting out with delivery driving and was feeling overwhelmed by all the different tracking methods people suggested. Your point about consistency being more important than perfection really puts things in perspective. I didn't know about deducting miles for car maintenance related to business use - that's a great tip! Should I be keeping receipts for those services too, or is just tracking the miles to and from the shop enough? Also, when you say "starting location" and "ending location," do you mean like specific addresses or is it okay to be more general like "home to downtown delivery area"? Thanks for breaking this down in such a practical way. It makes the whole process seem much more manageable!

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