As Rideshare driver, it's important for you to understand the various tax deductions that you can take advantage of when filing your federal tax returns. Here are some that would be helpful:
Mileage Deduction: You may have a good tax deduction if you drive quite a few miles as Rideshare driver. For 2024, you can deduct 67 cents per mile driven for business purposes. This deduction can add up quickly, so be sure to keep accurate records of your mileage. You have an option of claiming actual maintenance and operational expenses of your car instead of claiming mileage. We will discuss that option in another post.
Insurance Premiums: If you pay for Rideshare insurance, you can deduct the cost of your premiums from your taxes. This includes both liability and comprehensive coverage.
Phone and Internet Expenses: Because you use your phone and internet for work, you can deduct a portion of these expenses from your taxes. This includes the cost of your phone plan, as well as any accessories you use for work.
Health Insurance Premiums: If you're self-employed, you can deduct the cost of your health insurance premiums from your taxes. This could result in significant savings, especially if you have a high-deductible plan.
Snacks and Drinks for Passengers: Providing snacks and drinks for your passengers is a common practice among Rideshare drivers, and these expenses can be deducted from your taxes as a business expense. Just be sure to keep receipts and records of your purchases.
We will discuss many other tax saving ideas in our future posts. By taking advantage of the various deductions available to you as Rideshare driver, you can maximize your tax savings and keep more of your hard-earned money in your pocket.
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