Why you should track your miles with Gridwise
As a rideshare or delivery driver, you’re entitled to a tax deduction for the cost of operating your vehicle. There are two ways to deduct your vehicle expenses.
The first way is to record every single vehicle expense, but this can be a real pain.
The second way is much simpler. Just keep track of all of your miles driven for rideshare and delivery services and multiply that by the IRS’s standard mileage deduction rate.
The standard mileage rate for 2023 is 65.5¢ per mile. That means that if you drive 10,000 miles this year, your standard mileage deduction will be $6,550. That’s $6,550 of your yearly earnings that will now be tax-free.
65.5¢
2023 standard mileage deduction rate
The easiest way to keep track of your rideshare and delivery miles is with the Gridwise mileage tracker. Just start tracking your miles when you go online with your driver apps and stop tracking when you get home at the end of the day.
From the Earnings tab, you’ll also be able to see a running total of your mileage deduction for the year. And when it comes time to file your taxes, you can easily export a tax report in either PDF or CSV format.
By tracking your miles, you will also get more detailed stats in the earnings and insights features. For instance, in My Trends you will be able to easily see how your hourly earnings have changed over time.
By getting into the habit of tracking your miles, you’ll be better prepared for tax season, and have an easier time keeping track of your finances.
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.
