Driver Services Mileage Tax Deduction

by Gloria
(San Diego)

Driver Services Mileage Tax Deduction

Driver Services Mileage Tax Deduction

I am an independent contractor as a driver/courier. If mileage is taken as a deduction are all other expenses then not allowed?

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Dec 21, 2017
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starstarstarstarstar 		Standard vs Actual Mileage Tax Deduction
by: Stephanie

As an independent contractor who is a driver, you can take either the standard mileage deduction or use the actual expense method.

In both situations, you will first need to know how many miles you drive the car for business in a year vs how many miles are driven for personal.

This will give you the business percentage of use. You will then compare how much of a tax deduction you would get if you were to multiply the current year mileage allowance by the number of business miles, vs if you were to multiply the business percentage by the total actual expenses and you can take whichever is bigger.

This is for first year only. Once you take the actual expense method, you cannot change back to the standard mileage deduction. So you need to plan ahead as well.

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