You're a business now — act like one
The moment a payout from DoorDash, Uber Eats, Instacart, or Spark lands on a 1099, the IRS puts you in the same category as any small business owner. That means self-employment tax, quarterly estimated payments — and the upside: you can deduct ordinary and necessary business expenses against what you earn.
Most delivery drivers don't think of themselves as businesses, so they don't keep business records. Between deliveries, pickups, and positioning between orders, the costs pile up quietly — and the ones that never get recorded never get deducted.
The deductions most delivery drivers can claim
1. Mileage — the biggest one by far
Every mile from pickup to dropoff and repositioning between orders is a business mile. Delivery drivers who log all year routinely deduct thousands more than drivers who estimate in April.
2. Delivery gear
Insulated bags, hot-food carriers, dollies, cargo organizers, tie-downs, and gloves for food handling.
3. Phone and data
Dispatch apps and navigation make your phone a business tool — deduct the business percentage.
4. Tolls and parking while working
Tolls on a delivery route and meter parking at a pickup.
5. Permits and checks
Background check fees, food handler cards, and city courier permits.
6. Platform fees and commissions
Fees taken before your payout — deduct them so you aren't taxed on gross.
What the IRS actually wants to see
Deductions aren't denied because they weren't real — they're denied because they weren't documented. The standard: a receipt or bank record for expenses, a mileage log with business purpose, and records made close to when the expense happened. A mileage log kept as it happens is worth far more than one reconstructed in April — the IRS knows the difference.
That's the workflow DeductionDog was built around: capture receipts by photo or by scanning your email, log drives automatically, then export the year as an accountant-ready package — every item mapped to its Schedule C line.
Related videos
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Watch3 Tax Myths 1099 Workers Believe
Video — commute miles, the $600 rule, and what actually counts as income.
WatchThe 1099 Problem
Video — why gig workers overpay, and what poor records actually cost.
DeductionDog provides record-keeping software, not tax advice. Deduction eligibility depends on your specific facts — when in doubt, talk to a qualified tax professional.