Delivery drivers for food, grocery, and package platforms earn income without withholding and put serious miles on their vehicles. Consistent mileage logs and organized expense records are the foundation of a clean tax year.
Income to track
Track all platform payouts — base pay, tips, bonuses, and incentive pay. Platforms like DoorDash, Instacart, Amazon Flex, and Uber Eats provide earnings summaries, but reconcile those against your actual bank deposits. Platform fees are deducted before payout and should be tracked separately as a business expense.
Cash tips should be recorded at the time of receipt. All income is taxable regardless of whether a 1099 form arrives.
Mileage
Mileage is typically the largest deduction for delivery drivers. Log every business mile with the date, starting point, destination, and purpose. Miles driven while waiting for orders, traveling between deliveries, and driving to pick up orders all count as business miles. Personal errands and commuting do not.
2026 IRS STANDARD MILEAGE RATES
Jan 1 – Jun 30, 2026
72.5¢ / mile
Jul 1 – Dec 31, 2026
76¢ / mile
Standard mileage method is optional. Eligibility depends on applicable IRS rules and vehicle history.
Other vehicle expenses
If using the actual expense method instead of standard mileage, track fuel, oil changes, tires, repairs, insurance (business-use portion), registration, and depreciation. Apply the business-use percentage to total vehicle costs.
You generally must choose between the standard mileage method and the actual expense method in the first year you use a vehicle for business. Switching methods in later years has restrictions. Consult a tax professional before filing.
Equipment and supplies
Insulated delivery bags, coolers, carts, phone mounts, and other equipment used exclusively for deliveries are potential business expenses. Keep purchase receipts and note the business purpose. Phone and data charges used for delivery apps are also deductible in proportion to business use.
Estimated taxes
Delivery platforms do not withhold taxes. If you expect to owe $1,000 or more in federal tax for the year, you generally need to make quarterly estimated payments. Start by setting aside 30% of every payout, then use the real formula to fine-tune each quarter.
2026 FEDERAL ESTIMATED TAX DATES
State estimated tax rules and deadlines vary.
What to organize every week
- Download platform earnings reports weekly
- Log every delivery mile with date and purpose
- Save fuel, maintenance, and insurance receipts
- Record insulated bags, carts, or equipment purchases
- Track phone and data charges used for delivery apps
- Note platform service fees deducted from payouts
- Set aside estimated tax funds from each payout cycle
How SUNY helps
SUNY helps delivery drivers log income from multiple platforms, track mileage automatically, and keep vehicle and equipment records organized year-round. Keep a dedicated business bank account to separate platform payouts from personal spending, and avoid mixing funds. When you're ready to plan for retirement, explore Solo 401(k) vs. SEP-IRA.
Get Early AccessEducational information only. Vehicle expense method eligibility depends on your specific facts. Review tax decisions with a qualified tax professional.
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