As a parent juggling family life and a delivery side hustle, claiming mileage deductions can significantly reduce your tax burden. This guide covers IRS rules for self-employed drivers, including the 2025 standard rate of 70 cents per mile, essential record-keeping tips, and strategies to separate business from personal use while maximizing savings on platforms like DoorDash or Uber Eats.
Maximizing Tax Savings on Delivery Drives for Busy Parents
Many parents turn to delivery gigs as a flexible way to earn extra income around school schedules and family commitments. Whether you’re dashing for meals or dropping off packages in the evenings, the miles you rack up on the road can translate into valuable tax deductions. For self-employed individuals, the IRS treats these side hustles as businesses, allowing you to offset your earnings with vehicle-related expenses. The key is understanding what qualifies as deductible mileage and how to document it properly to avoid any issues during tax season.
First, confirm your status as an independent contractor. Most delivery platforms issue a 1099-NEC form if your earnings exceed $600 annually, classifying you as self-employed. This opens the door to business expense deductions on Schedule C of your Form 1040. Unlike W-2 employees, who can’t deduct unreimbursed mileage due to tax law changes, you can claim costs directly against your gig income. As a parent, this is particularly beneficial since delivery work often fits into irregular hours, like after bedtime or during nap times, without disrupting your primary routine.
To claim mileage, you have two main options: the standard mileage rate or actual expenses. The standard rate, which the IRS sets annually based on average vehicle operating costs, is the simpler choice for most drivers. For 2025, it’s 70 cents per mile for business use. This rate covers everything from gas and maintenance to depreciation and insurance, so you don’t need to itemize those separately. Multiply your total business miles by 0.70, and that’s your deduction. For example, if you drive 5,000 miles delivering groceries over the year, you could deduct $3,500, potentially saving hundreds in taxes depending on your bracket.
What counts as business mileage? It includes drives from your home to the pickup point, between deliveries, and back home if your home serves as your base. However, the commute to a separate job doesn’t qualify. For parents, this means tracking only the miles tied to your side hustle—say, loading up the car after dinner for a two-hour shift. Personal errands, like stopping at the store for family groceries en route, don’t count; only pure business drives do. If you use your vehicle for both, calculate the business percentage carefully. The IRS requires substantiation, so mixing family trips with deliveries could complicate things.
Record-keeping is non-negotiable and often the biggest hurdle for busy parents. The IRS mandates a contemporaneous log detailing the date, starting and ending locations, purpose, and miles for each trip. Apps like mileage trackers integrated with delivery platforms make this effortless—they automatically categorize drives and generate IRS-compliant reports. Aim to log at least weekly to capture details fresh. Without solid records, deductions can be disallowed in an audit, so treat this like budgeting for your kids’ activities: consistent and detailed.
If the standard rate doesn’t appeal—perhaps because your vehicle is fuel-efficient or leased—you can opt for actual expenses instead. This method lets you deduct the business portion of real costs like gas receipts, oil changes, tires, and even car washes needed for a clean delivery vehicle. Calculate your business use percentage by dividing business miles by total miles driven (e.g., 10,000 business out of 20,000 total = 50%). Apply that to your annual vehicle expenses. For 2025, with rising fuel prices, this could yield a bigger deduction if your costs exceed the standard rate, but it requires more paperwork. Parents with minivans or SUVs might find this advantageous due to higher operating costs.
Additional deductions can stack with mileage to boost your savings. Tolls and parking fees during deliveries are fully deductible, as are phone mounts or insulated bags essential for the job. If you advertise your services with vehicle wraps, those count too. For parents, home office deductions might apply if you use a dedicated space for scheduling shifts or managing earnings, but only if it meets IRS criteria as your principal place of business. Self-employment taxes also factor in—set aside about 15.3% of net earnings for Social Security and Medicare—but the qualified business income deduction can reduce that by up to 20% for eligible side hustlers.
Filing comes together on your annual return. Report gig income on Schedule C, subtract deductions like mileage, and carry the net profit to your Form 1040. Quarterly estimated payments help avoid penalties if your side hustle earns steadily. As a parent, consider how this income affects family tax credits, like the child tax credit, but deductions generally lower your adjusted gross income without phasing them out. Software tailored for gig workers simplifies this, pulling in 1099 data and calculating deductions automatically.
Balancing a delivery side hustle with parenting demands smart planning. Schedule drives during off-peak family times to minimize stress, and use the extra income for savings or kid-related goals. By claiming mileage correctly, you’re not just reducing taxes—you’re making your efforts more rewarding.
Disclaimer: This article provides general news, reports, and tips on personal finance topics. Consult a qualified tax professional for advice specific to your situation, as tax rules can vary.
