Delivery tax deduction...?

Question

i deliver part time at a pizza parlor and was wondering if i was eligible to get a tax write off. I asked the owner, but he's not so efficient in english and i can't seem to translate the word "deductable"....

My question is, can i write this off at the end of the year although my boss has no clue or documents to fill out? If yes, what documents do i need to provide the tax filer?

btw...the job sucks....with the gass prices as is and the amount of pressure put on during heavy hours (which leads to wear and tear)....i don't suggest anyone to do this unless they are REALLY tight on budget.

Answer 1

You would have two options. You could write it off, if you itemize your taxes.  But would you need expesnes over what the govt. gives you, which is >5K.

Your boss could change your status from a employee to a contractor. But while you could write off gas and other expenses, you would have to pay SE taxes on the entire earnings.

I dont advise that you switch as a contractor, not worth the SE tax.

Answer 2

You must keep a log of your mileage then can take a miscellaneous itemized deduction of your $1.50 per delivery minus 50.5 cents per mile if you itemize deductions and the deduction exceeds 2% of your gross income, otherwise you can deduct zero.  In general terms, you are being paid the IRS standard mileage rate for an average of three miles per delivery.

Answer 3

Do you get a paycheck with taxes taken out?  If so, I bet that you won't be able to deduct anything.  However, if you itemize your deductions, you can keep track of your total mileage and out of pocket costs while you are on the job.  

You can deduct either the standard mileage rate (50.5 cents per mile plus parking and tolls) or the actual percentage of business use of the car.  Look up form 2106 on the IRS website for more information.  Any reimbursements for mileage that your boss gives you must be deducted from the total expenses that you claim.

Answer 4

And don't forget to report your tip income.

Answer 5

It might be possible to deduct mileage, but probably not.  Keep track of the miles you drive, and split them out between personal miles, business miles (the actual deliveries), and commuting miles (home to work and back).  The business miles are deductible at 50.5 cents a mile.  But only the part of that that's over 2% of your income is deductible, and even then only if you itemize which you very likely don't.

Answer 6

What exactly would you be deducting? Your transportation expenses? Any deductions would have to be more than $5450 (this year) to make any difference.