As a DoorDash driver, one of the key considerations is tracking the miles you drive while making deliveries. Efficiently managing your mileage can have a significant impact on your tax deductions and overall earnings. In this article, we will explore the process of tracking your DoorDash miles, the methods you can use, and the importance of accurate mileage records.
What Miles Can You Track as a Delivery Driver?
When working for DoorDash and you’re confused about whether you’re allowed to track miles as a DoorDash driver, the answer is “yes.” You can track your business miles. This includes the miles you cover while making deliveries or returning to the drop-off zone. Additionally, if you take offers while driving and drop off items on your way to another client, you can track those miles too. However, personal errands such as medical emergencies and shopping are not considered for mileage tracking purposes.
How to Find Your DoorDash Miles
Your DoorDash miles can be found within the drivers’ platform on the Dasher app. The app follows a series of steps to determine your DoorDash miles:
• Determining your current location: DoorDash identifies your current location after sending you an offer. This helps the app select the optimal routes to the restaurant.
• Checking the restaurant location: Using the restaurant’s location, DoorDash determines the best route from your current location to the restaurant, recording the distance.
• Identifying the customer’s location: DoorDash checks the customer’s location and finds the best route from the restaurant to the customer, recording the distance.
• Tabulation of results: The app calculates the total miles you’ve covered during the day, including distances traveled between drop-off points and new orders.
It’s important to note that the app does not include extra mileage incurred if the customer provides the wrong address, leading to extended driving.
How to Track DoorDash Mileage
There are three main ways to track your periodic DoorDash mileage:
1. Use a Mileage Tracking App: Using a tracking application like Everlance, Hurdlr, Triplog, or Mile IQ is highly effective. DoorDash has recommended Everlance to its drivers. These apps track real-time mileage, helping you keep accurate records for tax deductions. They can also estimate earnings after taxes and offer other helpful features.
2. Create a DoorDash Mileage Log Book: For those who prefer not to use apps, creating a manual logbook can be effective. Divide the log book into sections like delivery date, odometer readings, total mileage, and additional notes. This method requires recording mileage at the end of each trip and can be complemented by retaining gas receipts as proof.
3. Look Through Previous DoorDash Orders: Your Dasher app displays your previous orders and earnings. By checking the deliveries you made on a given day and adding up the miles covered per trip, you can estimate your total mileage.
How to Create a Log If You Forget to Record Miles
If you forgot to record your mileage, follow these steps to create a log:
• Get Evidence of Car Usage: Check your Dasher app history to identify days you used your car for deliveries.
• Evidence of Distance Covered: Refer to your Dasher app to determine how much you drove based on the payment received.
• Documentation: Gas receipts are excellent documentation to prove mileage, including covered distance and dates.
How to Claim Your Mileage on Taxes
To claim mileage deductions on taxes, you need a documented record that includes:
• Dates of trips
• Miles covered
• Purpose of trips
• Areas covered
Having these four elements in your records allows you to accurately claim your mileage deductions on taxes.
Frequently Asked Questions about DoorDash Tracking for Drivers
Here are some common questions about DoorDash tracking:
Q: What happens if I forget to track miles as a DoorDash driver?
If you forget to track your miles, you can access an estimate of your DoorDash mileage on your application portal. Using tracking apps like Everlance can simplify mileage and expense tracking.
Q: Why should I track my expenses as a Dasher?
Tracking expenses allows you to deduct business expenses from your taxes, reducing your tax liability and increasing your earnings.
Q: What business expenses can I deduct as a dasher?
You can deduct various expenses, including car mileage, phone usage, ride costs, health insurance, and more.
Q: How can I check my mileage for tax deduction purposes?
A: Tracking your business-related mileage is essential for tax deduction purposes. Accurate records can help reduce the amount you owe in taxes or increase your refund.
In conclusion, accurately tracking your DoorDash mileage is crucial for maximizing your earnings and managing your tax deductions effectively. Whether you choose to use tracking apps, manual logbooks, or review previous orders, maintaining precise mileage records can greatly benefit your financial situation as an independent contractor.