Bookkeeping

Can independent contractor add milage traveled outside metropolitan area as tax deductible?

I do a side work as a doordash delivery, sometimes I choose to travel to another city 40 miles away to work there and come back . Can I add these 80 miles back and forth to the standard milage deductions?
I choose to travel voluntarily eventhough I can do it in my city but I prefer sometimes to travel.

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Answer

  1. 8 Answers

    Any time you are utilizing your personal vehicle for business purposes, those miles driven are business miles; however, commuting miles cannot be counted. As a food delivery driver, even though you don’t drive to an office or traditional place of work, you can still have commuting miles.
    For the business delivery miles, the moment you accept an order starts the mileage log which means you would track mileage driving to the restaurant and then to the customer. If you’re moving from one delivery to another, these qualify as business delivery miles.
    Now, if at some point you need to run a personal errand, that is the point where the business miles end and the personal miles begin. It’s important to track the business miles and keep those miles separate from the personal miles.
    For the commuting miles, those miles driven to get to where you intend to start working are considered commuting miles and would not qualify as business miles. So, in your specific example, you are driving to a nearby town and that nearby town is where you will then begin working your delivery duties – those would be commuting miles and not business miles.
    https://www.irs.gov/tax-professionals/standard-mileage-rates
    https://www.journalofaccountancy.com/news/2020/jan/2020-irs-mileage-rates-22724.html

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