Quote:
Originally Posted by MrMaxwell
How does that work? I was going to carry newspaper bundles (not deliver them to residences, but to the distribution centers) and I'm curious to know if the .48/mi deduction would apply for that. I'd be driving 204 miles per day. They would only be paying me $700/wk though. So if I'm paid $36k/yr and have nearly $36k in deductions, what happens then?
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You can use the mileage deduction or the actual costs. Usually people use the mileage as it's easier to track. You can use either, but not both. Your checks from the newspaper are proof you made the deliveries. Just keep the check stubs or at year's end ask for a printout of deliveries. Your 1099 is proof it's not a hobby. The IRS knows the difference between delivery driver and someone who deducts travel to resorts to post on their travel blog.
However, you'll come to realize as most people who do small deliveries, using their car, the payment you receive only covers your gas and a token amount for your time. In no way does it include the wear and tear on you vehicle. That's why this type of job or messenger jobs are always listed in the employment sections. It doesn't take long to figure out it's a money losing business.
You're going to put close to 75,000 miles a year on your car if you deliver every day. That will wear out even a new car in 2-3 years. Do the math. What you're earning doesn't even cover replacement cost.