How to deduct partial mileage as a Delivery driver when DMR is below federal rate
I work as a delivery driver for a local restaurant that pays me mileage reimbursement, but it's only 45 cents per mile which is way less than the federal rate of 65.5 cents. My manager mentioned I can claim the difference when I file taxes, but I have no idea how to actually do this. I've been keeping track of all my business miles in a logbook with dates and addresses. Also complicating things - I drive for DoorDash on weekends so I have both a W-2 from the restaurant and a 1099-NEC from DoorDash. I understand how to claim mileage for the DoorDash work on Schedule C, but where/how do I claim that partial mileage difference from my restaurant job? One more question - can I write off things like my new tires ($780), oil changes ($215 this year), and the toll road fees ($340) I've been paying? And if yes, where would I put those on my tax forms? I'm trying to get organized before the filing season starts. Thanks for any help!
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Dylan Mitchell
The key is understanding the difference between a W-2 employee and self-employment. For your DoorDash driving (1099-NEC), you'll report all business expenses including the full standard mileage rate on Schedule C. Unfortunately, as a W-2 employee for the restaurant, you can no longer deduct unreimbursed employee expenses (including the difference between your DMR and the federal rate) on your personal tax return. This deduction was eliminated for most employees with the Tax Cuts and Jobs Act through 2025. Your vehicle expenses for the restaurant job (including that mileage gap, tires, oil changes, and tolls) aren't deductible on your personal return. However, for your DoorDash work, you have two options: 1) claim the standard mileage rate (which covers gas, maintenance, depreciation) OR 2) track actual expenses and deduct the business percentage. You can't do both, and most drivers find the standard mileage rate simpler and often more beneficial. Just make sure you're keeping separate mileage logs for your W-2 job versus your 1099 work, as only the DoorDash miles count toward your Schedule C deduction.
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Fatima Al-Maktoum
•Wait, so I can't deduct anything for the restaurant driving even though they're paying me less than the federal rate? That doesn't seem fair since I'm actually losing money on each mile. Is there any way around this or am I just out of luck? Also, for the DoorDash driving, if I take the standard mileage deduction, can I still separately deduct the tolls? Or are those considered part of the standard rate?
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Dylan Mitchell
•Unfortunately, that's correct. Since the Tax Cuts and Jobs Act went into effect, W-2 employees can't deduct unreimbursed business expenses on their personal returns in most cases. The best approach would be to ask your employer for a higher mileage reimbursement rate, showing them the current federal rate as justification. For your DoorDash work, tolls are actually deductible separately even if you choose the standard mileage rate! The standard rate covers gas, maintenance, repairs, depreciation, and insurance - but certain expenses like parking fees, tolls, and interest on a car loan can be deducted in addition to the standard mileage rate. So keep those toll receipts for your Schedule C.
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Sofia Gutierrez
After struggling with a similar situation (I drive for multiple delivery apps plus a W-2 courier job), I found this amazing tool called taxr.ai (https://taxr.ai) that helped me sort everything out. It analyzed my mileage logs and immediately identified which miles were deductible and which weren't. The best part was uploading my messy mileage records - the tool automatically separated my 1099 driving miles (deductible) from my W-2 miles (not deductible) and calculated exactly what I could claim. It even flagged when I had forgotten to log ending mileage on some trips, which would have been a disaster in an audit. If you're trying to maximize deductions while staying compliant, especially with mixed W-2 and 1099 income, it's definitely worth checking out. Saved me hours of confusion and probably a few hundred in deductions I would have missed.
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Dmitry Petrov
•How exactly does it separate W-2 driving from 1099 driving? Like if I sometimes do restaurant deliveries and DoorDash on the same day, can it tell which miles were for which job? And does it handle the actual tax forms or just give you the numbers to put on your return?
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StarSurfer
•Sounds interesting but I'm skeptical. I've been using a simple spreadsheet for years and it works fine for tracking. How much does this service cost? And couldn't the IRS just disallow your deductions if they see you're working both jobs with the same vehicle?
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Sofia Gutierrez
•It lets you tag each trip with the delivery platform or employer, so you can mark which trips were for DoorDash versus your W-2 job. I was mixing trips on the same days too, and it helped me properly allocate the miles. You can also split trips if needed (like if you did multiple stops). It doesn't file your taxes, but it gives you a detailed summary report with all the numbers you need for your Schedule C and keeps your documentation organized if you ever get audited. The IRS is fine with you using the same vehicle for both W-2 and 1099 work - they just want you to accurately track which miles were for which purpose, which is exactly what this tool helps with.
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StarSurfer
Just wanted to follow up on my skeptical comment about taxr.ai - I decided to give it a try and I'm actually really impressed. I uploaded my messy handwritten mileage log (just took pictures of it) and the system converted everything and organized it perfectly. It showed me that I was missing about $1,300 in mileage deductions from some DoorDash trips I hadn't properly documented! Also helped me see that I was trying to deduct some things from my W-2 job that aren't allowed anymore (which could have triggered an audit). I was wrong about the spreadsheet being good enough - this was definitely worth it for finding those missed deductions alone. Now I feel confident my delivery tax situation is handled correctly.
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Ava Martinez
Have you tried calling the IRS to get clarification on your specific situation? I was in a similar position last year and needed to talk to someone directly. I used this service called Claimyr (https://claimyr.com) that got me through to an IRS agent in about 15 minutes instead of waiting for hours or getting disconnected. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c The agent I spoke with confirmed exactly what I could and couldn't deduct with my mixed W-2 and 1099 delivery income. They explained that while I couldn't deduct the mileage difference for my W-2 job, I could still deduct business percentages of my cell phone, hot bags, and car chargers on my Schedule C for the 1099 portion. Totally worth the call to get that clarification straight from the IRS.
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Miguel Castro
•How does this actually work? I've tried calling the IRS multiple times and always get the "high call volume" message and then they hang up. Does this service just keep auto-dialing until it gets through?
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Zainab Abdulrahman
•This sounds sketchy. Why would I need to pay a third party to call a government agency? The IRS phone line is free, you just need patience. Plus the people who answer probably don't even know all the tax rules correctly. I'd rather trust a CPA who specializes in gig workers.
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Ava Martinez
•The service reserves your place in line and calls you when an IRS agent is about to answer. It's basically a system that navigates the IRS phone tree and waits on hold for you, then connects you directly once someone's available. Saves hours of listening to hold music and getting disconnected after waiting. I understand the skepticism, but after trying for three days to get through on my own with no luck, this was a lifesaver. And while not every IRS agent knows every rule, they actually were very helpful with my specific delivery driver question. For complicated tax situations, I'd definitely use a CPA too, but for clarifying specific deduction rules, getting an official answer directly from the IRS gave me peace of mind.
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Zainab Abdulrahman
I have to admit I was completely wrong about Claimyr. After my accountant gave me conflicting information about deducting mileage, I decided to try calling the IRS directly to get the final word. After two failed attempts waiting on hold for over an hour each time, I reluctantly tried the service. Got connected to an IRS tax specialist in about 20 minutes. She confirmed exactly what others here mentioned - no deduction for the mileage difference on W-2 jobs anymore, but I could still deduct tolls separately from the standard mileage rate on my 1099 gig work. The best part was getting it straight from an official source instead of random internet advice (including my own incorrect assumptions). Will definitely use this again when I have tax questions that need official clarification.
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Connor Byrne
Just to add another option - have you considered asking your restaurant employer to increase your mileage reimbursement? I was in the same position (getting 40 cents when federal was 65.5) and showed my boss the actual costs of running my vehicle. They ended up bumping my reimbursement to 58 cents per mile, which isn't perfect but much closer to the federal rate. Sometimes employers don't realize how much the federal rate has increased with inflation and gas prices. Worth a conversation before tax season!
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Fatima Al-Maktoum
•Thanks for the suggestion! Did you put together any specific documentation when you asked for the increase? I'm wondering if I should calculate my actual costs or just point to the federal rate.
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Connor Byrne
•I created a simple one-page document showing: 1) The current federal rate versus what they were paying, 2) My monthly gas costs with receipts, 3) My recent maintenance costs divided by months of service, and 4) A calculation of how much the gap was costing me annually. I approached it very professionally, not as a complaint but as a business discussion. I mentioned that the federal rate is based on actual average costs and is adjusted regularly to reflect real expenses. I also noted that offering competitive mileage reimbursement helps with driver retention (hint hint). The key was coming prepared with real numbers rather than just asking for more money.
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Yara Elias
One thing nobody mentioned - make sure you're tracking your deadhead miles too (the miles driving back from a delivery when you don't have food in the car). Those miles are fully deductible for your DoorDash work! I made the mistake of only counting miles when I had food in the car my first year and missed out on almost 40% of my potential deduction. For your 1099 work, it's any mile driven for business purposes, including getting back to a hotspot area.
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QuantumQuasar
•Wait, really? I've been doing this wrong then! I've only been tracking the miles from the restaurant to the customer's house. So I can also count the miles driving to pick up the order and driving back to my waiting spot?
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Andre Dupont
•Yes, exactly! For your DoorDash work, you can deduct ALL business miles - driving to the restaurant, waiting/driving to find a good parking spot, driving to the customer, and driving back to your preferred waiting area or home. The key is that the miles need to be for business purposes. Just make sure you're clearly documenting the business purpose in your mileage log. I write things like "drove to McDonald's for pickup" and "returned to downtown waiting area after delivery." This helps if you ever get audited and need to explain why those return miles were business-related. The IRS considers it business mileage as long as you're actively working or positioning yourself to receive orders. So even driving between hotspots during your shift counts!
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Ahooker-Equator
I'm a newer delivery driver and this whole thread has been incredibly helpful! I had no idea about the W-2 vs 1099 distinction for mileage deductions. I've been driving for a local pizza place (W-2) for about 6 months and just started with Uber Eats on weekends. Reading through everyone's experiences, it sounds like I need to completely separate my tracking - no deductions for the pizza place miles, but full business mileage deduction for Uber Eats including those return trips I never thought to track. One question though - if I'm doing both jobs in the same shift (like finishing my pizza place shift then immediately going online for Uber Eats), how do I handle the transition? Is the drive from the pizza place to my first Uber pickup considered business mileage for the 1099 work? Also want to echo what others said about asking for higher reimbursement from employers. My pizza place only pays 40 cents per mile and after reading Connor's success story, I'm definitely going to have that conversation with my manager!
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