Much like rideshare drivers, delivery drivers should be tracking their mileage in a log and could get a deduction for all business mileage. With the rising popularity of services such as Amazon Flex, DoorDash, Postmates, and UberEATS, delivery drivers are definitely in demand in certain geographic areas. Keep track of your deductible miles.
I’ve gotten several questions about which miles are deductible for delivery drivers. Drivers bounce back and forth between delivery centers, grocery stores, restaurants, etc. while delivering items all around their area. It basically comes down to: business miles are deductible, but commuting miles are not. The question becomes which of your miles are considered business vs. commuting. To me, it’s a little more clear with delivery drivers vs. rideshare drivers.
Let’s look at a scenario with a driver for Amazon Flex (though you could likely substitute any delivery service). You get notified that there are packages available for delivery. Your first drive from home to pick up a package is considered commuting. Your last trip back home after delivering the package is also considered commuting. Everything between that, is business miles. Assuming you are using the standard mileage rate, those business miles are deductible.
For example, let’s say you drove out to Warehouse #1 (or restaurant, or grocery store, etc.) to pick up a package, delivered that to a home, drove to Warehouse #2 to pick up a package, delivered that, then drove to Warehouse #3 to pick up and deliver that one, and came home after that last delivery. Your first trip to warehouse #1 is considered commuting and not deductible. Your last trip from the delivery location from Warehouse #3 back home is considered commuting. Everything between those trips is deductible. So while you couldn’t deduct your initial trip to Warehouse #1, you can indeed include mileage to Warehouse #2 and Warehouse #3 as business mileage (even if Warehouse #2 and #3 are in fact the same warehouse as #1).
I can help answer your specific deductible mileage questions. Please feel free to contact me. If you are a current client, I will work with you to figure out the best approach we can take.