Which expenses are tax-deductible?
As a rideshare or delivery driver, you’re entitled to tax deductions for various business expenses. It’s not always easy to know what’s tax-deductible and what’s not, so we put together this guide to help you know which expenses to keep track of.
Many of your expenses will be related to your vehicle: things like gas, maintenance, and auto insurance. Thankfully, you don’t need to keep track of these individually if you don’t want to. Instead, you can use Gridwise to track your mileage and deduct the standard mileage deduction rate.
2022 standard mileage deduction rate (Jan-Jun)
2022 standard mileage deduction rate (Jul-Dec)
To track your mileage with Gridwise, just flip the mileage tracking switch when you go online with your driver apps and stop tracking when you get home at the end of the day. Even the miles driven between trips and deliveries are deductible as long as you’re online.
Included in the standard mileage deduction rate
You don’t need to track these if you plan to use the standard mileage deduction
- Gasoline
- Auto insurance
- Car lease payments
- Vehicle maintenance and repair
- Vehicle depreciation
There are also a number of non-vehicle expenses that you may want to track and deduct. In order to track these with Gridwise, just tap the (+) button in the upper right corner of the Earnings tab and choose “add expense.”
Other deductible expenses
- Cleaning and sanitization
- Food and drink while working
- Gridwise Plus subscription
- Health insurance
- Parking
- Phone and internet plans
- Supplies (cleaning supplies, passenger perks, etc)
- Tolls
Gridwise is not a personal tax advisor. We rely on you to track only business expenses for accurate tax reporting. The information above is meant only for guidance purposes and not as professional, legal, or tax advice. Furthermore, the information above does not give personalized legal, tax, investment, or any business advice in general.