One of the best parts of being an independent contractor is that you can write off your business expenses. You pay real money for the gas in your car, an oil change, and the data plan you use to connect with DoorDash. You should get credit on your taxes for doing so.
DoorDash has partnered with Everlance to make tracking your revenue and expenses for taxes as easy and simple as possible. As a Dasher, your largest single business expense will likely be your vehicle and for 2017 the IRS will allow up to $0.535 per business mile as a deduction. In order to prove that these were legitimate business expenses, you need to keep a mileage log. The Everlance app automatically records your mileage for you and all you need to do is tell the app whether the trip was for DoorDash or not. You can also input your revenue and other expenses (such as your cell phone bill) to the app to stay on top of your taxes.
Everlance can save you time and money, while helping you get peace of mind by backing up all your data to the cloud. While Everlance is a free app available on iOS or Android, a premium version with some extra bells and whistles is also available on iOS as a subscription. As a Dasher you can upgrade to the Premium version for just $1 for a 1 year subscription (a $60 value).
What is Everlance and why should I use it?
Everlance is a tool that automatically tracks your mileage, expense, and revenue through an app designed for Independent Contractors. If you search on the App Store for "mileage log" you'll see a variety of options to choose from. An app like Everlance can help you stay organized when it comes to tax time and also find additional sources of write offs by ensuring you're recording all possible business mileage.
Why should I track my expenses as a Dasher?
In many cases, Independent Contractors can deduct business expenses from taxes. The IRS expects you to pay taxes on the profit of your business not your revenue, but in order to do so it's important to keep track of the money you've spent on your business so far.
For example if a painter sold a painting for $1,000 but spent $400 on a canvas, paint, and other supplies at the art store they would need to pay taxes on the $600 of profit instead of the $1,000 the painting sold for.
In order to "write off" those expenses it's generally a good idea to keep records of your business expenses (the receipt from the art store in the above example). As a dasher, your single largest expense is likely your vehicle, which means keeping a mileage log. You can read more about how taxes as an independent contractor works here.
I've heard that DoorDash Dashers can get a special rate for Everlance Premium - what is it?
Everlance is a free tool, but if you'd like to get the Premium version which has additional productivity and cost saving features you can get a 1 year subscription for $1 as a Dasher. You can read more on how to do so here.