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Doordash taxes?
So I've been doing doordash and I saw on irs.org that you get a deduction of 57.5 cents a mile and I've noticed after tracking my miles, every day it comes back as the government owing me, for example. Today I made $122 and drove 111 miles, if I paid 30% in taxes it'd be $36.60 but 111 miles multiplied by .575 (57.5 cents) is $63.82 and I only make about 26k a year doing doordash so its highly unlikely that I would be paying 30%. My question is, am I missing something or am going to pay $0 in taxes? Because every day is the same, I charge myself even 40% and it still comes back as the government owing me like $7-$10 is it possible to pay $0 and get a refund? I assume the answer is no
5 Answers
- A HunchLv 76 months ago
You are required to keep a log of every mile you drive. If you don't, none of the miles count.
If you pay $0 in taxes, it means you earned $0.The 57.5¢ is what the US government has determined it costs to operate an average car based on the gasoline, insurance, tires, oil changes, etc.
Based on your scenario: You had $122 in revenue, $63.83 in expenses, so you only earned $58.17. - your taxes are based on the $58.17, not the $122.
- ibu guruLv 76 months ago
The govt owes you NOTHING! You deduct the number of miles driven expressly for business, times 57.5 cents/mile. Then deduct that amount from earnings to calculate taxable income. In your example, $122 minus $63.82 yields your net taxable income. You must record departure place > delivery address, mileage & amount of tip for each place you go on delivery.
You only get a refund IF you are paying withholding taxes, and more is withheld than what you owe at the end of the year. Your mileage deduction reduces your taxable income to reduce the taxes you pay. So you might get a refund if you are paying withholding taxes for state & federal income taxes & have paid in more than you end up owing on next year's tax returns.
- EvaLv 76 months ago
Your math is faulty. You would pay taxes on on $58.18 ($122 - 63.82). Your expenses are a deduction from income, not from tax. Your profits are also subject to self employment tax (15.3%) as well as income tax. The official site is irs.gov, not org.
- StephenWeinsteinLv 76 months ago
You are missing something. A "deduction" means you subtract that amount from what you made, not from the tax. So if you made $122 and have a deduction of $63.82 and the tax is 30%, then you subtract $122-63.82 and multiply the result by 30%. To pay nothing, you would need the deduction to be what you made, not 30% of what you made.
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- JudyLv 76 months ago
A deduction can only reduce your taxable income to Zaro, not below. You might or might not owe income tax. But sounds like you'll owe self employment tax, for social security and Medicare. Not sure what kind of math you're using that your daily amount coms out negative though.