How to Make the Most Money with Delivery Services and Rideshare Apps
You can claim deductions for your work. This includes things like car costs, phone bills, insurance, and snacks for passengers. It’s important to keep good records all year. This way, you can claim all the deductions you’re eligible for and get a bigger refund.
Mileage Deduction vs. Actual Expenses Deduction
Choosing between mileage deduction vs actual expenses depends on what’s best for you. For 2023, you can deduct $0.655 for each mile driven. Or, you can deduct your real car costs like gas, upkeep, insurance, and wear and tear. A tax expert or software can help you pick the best option for you.
| Deduction Type | Benefit | Drawback |
|---|---|---|
| Standard Mileage Deduction | Simplified record-keeping, set rate per mile | May not fully capture all vehicle-related expenses |
| Actual Expenses Deduction | Potential to deduct more expenses | Requires meticulous record-keeping of all vehicle-related costs |
No matter which method you pick, keeping accurate and detailed records is key. This helps you claim all you can and maximize your tax refund as a self-employed driver or delivery worker.
Ridesharing Income and Delivery Services Pay the Most
In the gig economy, rideshare and delivery drivers can make different amounts of money. Rideshare drivers in big cities and tourist spots can earn $20 to $30 per hour. They make more from longer trips than short ones. Delivery drivers earn about $13 per local delivery on average. But, they can take more deliveries at once to use their time well.
