Delivery apps like DoorDash, Instacart, Uber Eats, and Shipt classify drivers as independent contractors, which means no taxes are withheld from your pay — and it means you are entitled to deduct real business expenses against that income. This checklist covers what delivery drivers can write off and what records to keep along the way.
Mileage: almost always your biggest deduction
Every mile driven for a delivery — from accepting the order to dropping it off, plus mileage driven while waiting for the next assignment in an "online" active status — is deductible using either the standard mileage rate or actual vehicle expenses. For most drivers with a modest, reliable vehicle, the standard mileage rate produces a larger and simpler deduction. Our full comparison, Standard Mileage Rate vs. Actual Expenses, walks through how to choose and how to track it correctly.
The single most common mistake delivery drivers make is only logging miles from pickup to drop-off and forgetting the miles driven while online and waiting for an order, or driving to a better zone. Track everything from the moment you go online in the app.
Equipment and supplies
- Insulated hot bags and delivery totes.
- Phone mount, charger, and car adapter used for the app.
- Cooler bags or grocery totes for Instacart and grocery-delivery platforms.
- Hand sanitizer, masks, or similar supplies purchased specifically for deliveries.
Phone and data costs
Since the delivery apps run entirely through your phone, a business-use percentage of your phone bill and data plan is deductible. If you use the same phone for personal calls and texting, estimate the percentage of use dedicated to driving apps — many drivers land somewhere between 30% and 70%, depending on how much other phone use they have. Keep this estimate consistent and reasonable rather than rounding it up every year.
Parking, tolls, and car washes
| Expense | Deductible? | Note |
|---|---|---|
| Tolls incurred during deliveries | Yes | Fully deductible in addition to mileage |
| Parking fees while making a delivery | Yes | Keep receipts or app records |
| Parking tickets or traffic fines | No | Fines and penalties are never deductible |
| Car washes, if using standard mileage rate | Generally not separately deductible | Standard mileage rate already covers routine vehicle upkeep |
Health insurance if delivery driving is your main income
If you buy your own health insurance because you do not have access to an employer plan, self-employed drivers can often deduct 100% of those premiums, separate from itemizing. See our self-employed health insurance premium deduction guide for eligibility rules.
Quarterly taxes: don't wait until April
Because delivery platforms do not withhold taxes, the IRS expects you to pay estimated taxes four times a year if you expect to owe a meaningful amount. Skipping this can trigger an underpayment penalty even if you pay everything owed by the April deadline. Our quarterly estimated taxes guide shows how to calculate and schedule these payments.
Frequently asked questions
Do I get a 1099 from every platform I drive for?
Each platform issues its own Form 1099-NEC or 1099-K once you cross their reporting threshold, but you must report all your delivery income even from platforms that don't send a form, if your total earnings are below the threshold.
Can I deduct mileage and also deduct gas separately?
No. If you use the standard mileage rate, gas is already built into that per-mile figure. You would only deduct gas separately if you choose the actual expense method instead.
What if I drive for multiple delivery apps at once?
Combine all mileage and expenses across every platform into one Schedule C, since it is all part of the same delivery-driving business, rather than filing separately for each app.