Food delivery and rideshare can be a great way to make some extra cash, which can boost your savings or help you settle a debt. You might be doing it for the extra income or as your full-time job. Regardless it can affect how you file your taxes come tax season.

As a 1099-worker, you should expect additional tax forms in the mail, but did anyone tell you that you now also qualify for some tax deductions? Here are some of the top ones that you may find useful. 

Standard Mileage

The Standard Mileage Deduction is the national rate you can claim for each mile you travel. The rate is supposed to cover both gas and maintenance. To file for this, you should keep a strict track of all the miles you drive after you accept a ride as that is when the clock starts for the Uber and Lyft, till you drop them off at their destination, and also the miles it takes for delivering food in each gig.

Repairs And Tune-ups

The expenses that go into combating your car’s wear and tear are for keeping up with excellent rideshare and delivery service. These expenses also include the costs of keeping your vehicle clean. You can file them as deductibles. 

Gas Expenses

Every time you fill your tank for gigs, record it so you can file for tax deductions. This deduction can be tricky as you have to be super careful to exclude the gas for personal use. 

Health Insurance

If the company that you deliver food or work as a rideshare driver for does not offer you health insurance (which most don’t), and you have a premium that you pay for out of your pocket, you can mark a tax deduction for health, dental, as well as long term care. 

Toll Fees

Always keep your toll receipts with you every time you are on the clock and have to pay for passing through. File them as deductibles. 

Phone And Internet

You can easily deduct part of your phone bill that is related to your business. Even if you are using a quarter of your internet data bandwidth or phone bill for connecting with customers, you can deduct that on taxes. If you have specially bought a separate phone for your gigs, you can deduct the cost when you file your taxes. 

Accessories

If you are buying new things for your car strictly for the benefit of riders for a rideshare company, they are tax-deductible. These include car chargers, phone mounts, Bluetooth headsets, etc. 

Some drivers who wish to solicit tips buy mint candies for their riders. This expense is deductible.

Parking 

As a gig economy driver, parking expenses are highly avoidable. But sometimes you have to pay to park. Having to pay for parking is more the case with food delivery than rideshare. If you find yourself needing to pay for parking, it is tax-deductible. 

Suppose you are new to the gig economy and had to do food delivery for the first time in 2020 because of the Coronavirus. In that case, you might want to consult a tax professional to help you sort out the nuances of filing taxes using the 1099 form. Or you can file online with a service like TurboTax.

If you already have these tax deductions ready to go but are new to filing 1099-form taxes, check out this article on how gig workers file their taxes.