**What can I write off on my taxes as an Uber Eats driver?**
As an Uber Eats driver, you may be wondering what expenses you can deduct from your taxes to lower your tax bill. The good news is that there are several tax deductions available to you as an independent contractor. Here are some of the common write-offs that you can take advantage of as an Uber Eats driver.
One of the biggest deductions available to Uber Eats drivers is the mileage deduction. You can deduct the miles you drive while making deliveries for Uber Eats at a rate of 58 cents per mile for the 2021 tax year. This includes the miles driven while picking up food from restaurants, as well as the miles driven to deliver the food to customers. Keeping accurate records of your mileage is crucial, so be sure to track your miles using a mileage tracking app or a logbook.
Another deductible expense for Uber Eats drivers is the cost of gas and oil for your vehicle. You can also deduct expenses related to vehicle maintenance and repairs, such as oil changes, tire rotations, and brake repairs. Additionally, any tolls and parking fees you incur while making deliveries can be deducted from your taxes.
In addition to vehicle-related expenses, you may also be able to deduct expenses related to operating your smartphone, such as the cost of your phone plan and data usage. Since your smartphone is essential for communicating with customers and navigating to delivery locations, these expenses can be considered necessary for your business as an Uber Eats driver.
FAQs about Tax Write-Offs for Uber Eats Drivers
1. **Can I deduct the cost of food and drinks I purchase while working?**
As an Uber Eats driver, you cannot deduct the cost of food and drinks you purchase while working. The IRS does not allow deductions for personal expenses, including meals and snacks consumed during work. However, you can deduct meals purchased for business purposes, such as meals with potential delivery partners or clients.
2. **Can I deduct the cost of clothing and gear I use for deliveries?**
Yes, you can deduct the cost of clothing and gear that are exclusively used for making deliveries for Uber Eats. This includes items such as insulated delivery bags, thermal food carriers, and protective gear used while handling food deliveries.
3. **Can I deduct the cost of my Uber Eats driver’s license and background check?**
Yes, you can deduct the cost of any required licenses, permits, or background checks needed to become an Uber Eats driver. These expenses are considered necessary for conducting your business and can be deducted from your taxes.
4. **Can I deduct the cost of marketing and promotional expenses?**
Yes, you can deduct the cost of marketing and promotional expenses related to your Uber Eats business. This includes expenses such as business cards, flyers, and online advertising to attract new customers and increase your earnings as a delivery driver.
5. **Can I deduct the cost of my cell phone and data plan?**
Yes, you can deduct the cost of your cell phone and data plan to the extent that they are used for business purposes. This includes expenses related to calls, texts, and data usage while communicating with customers, accepting delivery requests, and navigating to delivery locations.
6. **Can I deduct the cost of insurance premiums for my vehicle?**
Yes, you can deduct the cost of insurance premiums for your vehicle that are directly related to your Uber Eats business. This includes liability insurance, collision coverage, and comprehensive coverage for your vehicle used for making deliveries.
7. **Can I deduct the cost of vehicle registration and inspection fees?**
Yes, you can deduct the cost of vehicle registration and inspection fees that are necessary for operating your vehicle as an Uber Eats driver. These expenses are considered part of the cost of using your vehicle for business purposes and can be included as deductible expenses on your tax return.
8. **Can I deduct the cost of my Uber Eats driver’s license and background check?**
Yes, you can deduct the cost of any required licenses, permits, or background checks needed to become an Uber Eats driver. These expenses are considered necessary for conducting your business and can be deducted from your taxes.
9. **Can I deduct the cost of marketing and promotional expenses?**
Yes, you can deduct the cost of marketing and promotional expenses related to your Uber Eats business. This includes expenses such as business cards, flyers, and online advertising to attract new customers and increase your earnings as a delivery driver.
10. **Can I deduct the cost of my cell phone and data plan?**
Yes, you can deduct the cost of your cell phone and data plan to the extent that they are used for business purposes. This includes expenses related to calls, texts, and data usage while communicating with customers, accepting delivery requests, and navigating to delivery locations.
11. **Can I deduct the cost of insurance premiums for my vehicle?**
Yes, you can deduct the cost of insurance premiums for your vehicle that are directly related to your Uber Eats business. This includes liability insurance, collision coverage, and comprehensive coverage for your vehicle used for making deliveries.
12. **Can I deduct the cost of vehicle registration and inspection fees?**
Yes, you can deduct the cost of vehicle registration and inspection fees that are necessary for operating your vehicle as an Uber Eats driver. These expenses are considered part of the cost of using your vehicle for business purposes and can be included as deductible expenses on your tax return.
