2021 is finally here and with that comes hopes for a better year. Unfortunately, another thing that comes to mind is taxes. For Digital Platform workers(rideshare and food delivery drivers), 2020 was a year full of challenges and your tax return for this year will likely be challenging as well.
The key to removing some of the stress of filing is record keeping. Your filing date this year is Thursday, April 15th, giving you 4 1/2 months to prepare. Start gathering your records now if you haven’t done so already..
According to Turbotax you want to have records for;
- Car mileage accrued while driving for rideshare. This includes all of your mileage from the moment you turn on the app to when you went offline.
- Car maintenance receipts
- Operating expenses like your cellphone bill. (If you use this phone for both rideshare and personal use, you can only claim a portion of this expense.)
- Business permit fees for rideshare
- Anything you purchase for your riders like water, gum, or even cleaning supplies used to clean up after your riders.
A great tip is to have a credit card that you use specifically for all of your operating expenses.
One last thing to consider is Unemployment Insurance and any money you received from PPP. According to the US Chamber your PPP loan is not taxable even if it is forgiven but your UI is. Make sure you have this information on file.
Putting in the work now will help make 2021 a great year!
Wednesday: Dash cams…are you required to notify your passengers they are being recorded?