As a delivery driver, you may be surprised to learn about the numerous tax deductions available to you. These deductions can significantly reduce your taxable income, saving you money at tax time. Here's a rundown of some of the most common tax write-offs for delivery drivers.
If you're a delivery driver who uses a bike for your job, you can deduct the cost of the bike and any related accessories. This could include items like helmets, lights, and maintenance tools.
How to write it off: Report these expenses on Schedule C, Box 27a.
Did you know that meals you eat while working can be deducted? This includes meals eaten while on the road or during a break in your shift.
How to write it off: Report these expenses on Schedule C, Box 24b.
As a delivery driver, your car is your office. You can deduct a variety of car-related expenses, including inspection fees, insurance, registration, and maintenance costs.
How to write it off: Report these expenses on Schedule C, Box 9 and Box 15.
If you use part of your home for business purposes, such as for administrative tasks or storing supplies, you can deduct the cost of home office furniture.
How to write it off: Report these expenses on Schedule C, Box 18.
Hot bags and courier backpacks are essential tools for delivery drivers. These items help keep food warm and secure during transport, and their cost can be written off.
How to write it off: Report these expenses on Schedule C, Box 22.
If your delivery job requires travel and you eat meals during these trips, these meals can be deducted. This can include breakfast, lunch, dinner, and snacks.
How to write it off: Report these expenses on Schedule C, Box 24a.
Parking fees can add up quickly, especially in busy urban areas. Fortunately, these costs can be deducted as a business expense.
How to write it off: Report these expenses on Schedule C, Box 27a.
If you use your home as a base for your delivery business, you can deduct a portion of your power bill. This is based on the percentage of your home used for business purposes.
How to write it off: Report these expenses on Form 8829.
Any software that you use to manage your deliveries, track your expenses, or otherwise help with your business can be written off. This could include route planning apps, accounting software, or even communication tools.
How to write it off: Report these expenses on Schedule C, Box 18.
If you have insurance for a property that you use for your delivery business, such as a home office or storage space, you can deduct the cost of that insurance.
How to write it off: Report these expenses on Form 8829.
Repairs to a property that you use for your delivery business can be deducted. This could include fixing a leaky roof on your storage shed or repairing a broken window in your home office.
How to write it off: Report these expenses on Schedule C, Box 21.
As a delivery driver, you may frequently have to pay tolls. These costs can be deducted as a business expense.
How to write it off: Report these expenses on Schedule C, Box 27a.
If you travel for your delivery business, whether it's driving to different delivery locations or flying to a business meeting, you can deduct these travel costs.
How to write it off: Report these expenses on Schedule C, Box 24a.
If your delivery business requires overnight travel, you can deduct the cost of your lodging. This includes hotels, motels, or any other type of accommodation.
How to write it off: Report these expenses on Schedule C, Box 24a.
If you have to wear a uniform for your delivery job or if you purchase branded items for your business, you can deduct these costs. This could include a company shirt, hat, or even a branded car wrap.
How to write it off: Report these expenses on Schedule C, Box 27a.
A vehicle tool kit is essential for any delivery driver. If you've purchased one for your business, you can write off the cost.
How to write it off: Report these expenses on Schedule C, Box 22.
If you use your home for your delivery business, you can deduct a portion of your water bill. This is based on the percentage of your home used for business purposes.
How to write it off: Report these expenses on Form 8829.
Wi-Fi is essential for managing a delivery business. If you use it for work purposes, you can deduct a portion of your Wi-Fi bill.
How to write it off: Report these expenses on Schedule C, Box 25.