Nervous about 1099 and potential audit risk for delivery driver mileage deductions

Thanks for the insight! Would digital logs be sufficient if we got audited? I have everything in a spreadsheet with dates and miles driven, but I'm not sure if that's enough proof for the IRS or if they'd want something more official looking.

Digital logs are absolutely sufficient as long as they're contemporaneous - meaning you recorded the information at or near the time the driving occurred, not created months later. Your spreadsheet with dates and miles is perfect. Some people use apps specifically for mileage tracking, but a consistently maintained spreadsheet works just as well. If you want extra protection, consider noting the starting and ending odometer readings periodically in your spreadsheet, and maybe even the general purpose of trips (like "DoorDash north side deliveries"). But what you already have sounds more than adequate.

Does it actually look at your specific documents or is it just general advice? I've tried other tax "help" tools before and they just spit out generic recommendations.

How does the mileage tracking work? Like does it connect with tracking apps or do you manually enter everything? My husband does Grubhub and I'm looking for something better than my current method of taking pictures of his odometer lol.

It actually analyzes the specific documents you upload - that's what impressed me. You can submit your mileage logs, 1099 forms, and any other tax documents you're concerned about, and it gives personalized feedback based on your particular situation, not just generic advice. For mileage tracking, you can either upload your existing logs (like spreadsheets or PDF exports from tracking apps) or manually enter your data. It works with most popular tracking methods, so the odometer pictures approach could work too if you have them organized by date. The system mainly evaluates whether your documentation would satisfy IRS requirements during an audit.

Wait, they actually get you through to the IRS? I've been calling for 3 weeks and keep getting the "call volume too high" message. How does this actually work?

Yeah right. Nothing gets you through to the IRS these days. I tried calling 15 times last year about a similar issue. This sounds like a scam to me.

They use a system that continuously monitors the IRS phone lines and when there's an opening, they call you and connect you directly to the IRS. It basically does the waiting for you so you don't have to waste hours with the phone to your ear. The system is completely legitimate and transparent. They don't ask for any sensitive information - they just notify you when they've secured an open line and connect you directly. After that, you're talking straight to an actual IRS agent just like if you'd called yourself, but without the hours of waiting and busy signals.

Should I be worried about my return being delayed if I claim a high mileage amount? I've got about 20k miles on 18k of Uber income. Really need my refund for some upcoming expenses.

Your refund shouldn't be delayed just because of claiming legitimate mileage deductions. The IRS processes millions of returns from gig workers with similar ratios every year. As long as everything else on your return is in order, there's no reason to expect a delay from the mileage deduction alone. If you're worried about timing, make sure you file electronically and choose direct deposit for your refund. That's the fastest way to get your money regardless of what deductions you're claiming.

If you take the standard mileage deduction, you don't need gas/maintenance receipts. The standard rate (65.5 cents per mile for 2023) is meant to cover all those costs. You can't deduct those expenses separately if you're taking the standard deduction.

This is really reassuring to hear! I'm in a similar boat with my first year doing gig work and was getting nervous about my mileage numbers looking too high. It's good to know that keeping detailed daily logs is the right approach. Quick question though - when you say "contemporaneous," does that mean I need to log miles the exact same day, or is it okay if I update my spreadsheet every few days as long as I'm consistent about it?

Contemporaneous generally means recorded at or very close to when the activity occurred, so updating your spreadsheet every few days should be fine as long as you're consistent and not recreating records from memory weeks or months later. The key is showing you had a regular system in place and weren't just estimating everything at tax time. If you want to be extra safe, consider jotting down daily totals on your phone or a small notebook during your driving days, then transferring those numbers to your spreadsheet every few days. That way you have the immediate record even if your spreadsheet gets updated in batches. But honestly, if you're consistently updating within a few days and can show that pattern, you should be in good shape.

This is such helpful advice! I'm also new to the delivery driver tax situation and was worried about the same things. The tip about noting work areas in the logs is really smart - I hadn't thought of that but it makes total sense for showing business purpose. One quick question - when you say "claim every mile you legitimately drove for business," does that include the drive from home to the first delivery area at the start of a shift? I've been excluding those miles because I wasn't sure if commuting to your "work area" counts as business miles or personal miles for delivery drivers.

Great question about the commute miles! For delivery drivers, the rules are a bit different than traditional employees. Once you turn on your delivery app and are available to receive orders, those miles generally count as business miles - even if you're driving to a better area to wait for orders. However, if you're driving from home to a specific "first delivery" without the app on, that's typically considered commuting and not deductible. But if you turn the app on at home and drive to a hotspot while available for orders, those miles usually qualify. The key is being "available for business" rather than just getting to where you'll start working. Most delivery drivers I know turn their apps on before leaving home and drive to busy areas while accepting orders along the way - in that case, all those miles would be business miles. Just make sure your logs reflect when you were actually "on duty" and available for deliveries versus personal driving. That distinction will help support your deductions if anyone ever asks questions.