As a rideshare driver and small business owner, keeping track of your expenses ensures you maximize your deductions and tax savings when it’s time to file.
The IRS has already moved to increase the standard mileage rate to provide some relief. As a rideshare driver, there are many other expenses you can deduct. This includes:
- Oil
- Lease payments
- Vehicle maintenance expenses
- Auto insurance
- Vehicle depreciation
- Registration expenses
- Car washes
- Parking fees
To make life and tax time easier for the future, you should create a system to routinely track your expenses. It is important to keep receipts for your expenses so that you are prepared when it’s time to file. This way, you can take advantage of any increases and deductions, maximize your savings, and make sure you know what you are entitled to.
Tax Tracking Tips
- Keep your receipts!
- Categorize your expenses with a spreadsheet or folder system.
- Keep a separate credit card or bank account that’s dedicated to your work.
- Download apps that can keep track of your mileage (Everlance, Stride, TripLog)
- Download an app that lets you photograph and organize your receipts (Mint, Goodbudget, Expensify)
- Use a log to keep track of the miles you drive while with a passenger.
