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Originally published August 27, 2024. Updated June 2026.
If you're a gig worker wondering "what expenses can I claim as a delivery driver?" or "is this expense deductible?", keep reading.
Whether you work full-time or part-time as a delivery driver or rideshare driver, knowing which expenses you can claim matters for your tax bill. The IRS lets you deduct the ordinary and necessary costs of running your business, and for gig workers, that list is longer than most people expect.
In this guide, we'll cover the key expenses delivery drivers and rideshare drivers can claim, plus the easiest way to track them all year long.
1. Mileage and Vehicle Expenses
Vehicle expenses are the biggest deduction available to most delivery and rideshare drivers. You have two options, and you must choose one per tax year.
Standard Mileage Rate: Track your business miles and multiply by the IRS rate. For 2026, the rate is 72.5 cents per mile. This accounts for gas, maintenance, depreciation, and insurance, so you cannot deduct those costs separately if you use this method. You can still deduct parking fees and tolls on top.
Actual Expenses: Deduct the real costs of using your vehicle for business: gas, oil changes, tires, insurance, registration, repairs, and depreciation. You deduct the business-use percentage of each cost. This method requires keeping receipts for everything.
Most gig workers use the standard mileage rate because it's simpler, and 72.5 cents per mile is competitive with actual vehicle costs for a typical car.
How Solo helps: Solo's automatic mileage tracker records your trips in the background while you work. It matches your recorded mileage to your platform rides and deliveries to build an accurate deduction estimate, so you're not manually logging every trip or guessing at the end of the year.
2. Mobile Phone and Data Plan
Your phone is your dispatch center, navigation, and earnings tracker all in one. You can deduct the business-use percentage of your monthly phone bill and data plan.
If you use your phone 80% for work and 20% for personal use, you deduct 80% of the bill. Keep your monthly statements as documentation. If you own a second device used only for gig work, you can deduct 100% of that bill.
3. Tolls and Parking
Tolls and parking fees you pay while working are fully deductible. Keep your toll transponder statements (E-ZPass, SunPass, FasTrak, or whichever system you use), or photograph your receipts.
Parking tickets, speeding tickets, and traffic violations are NOT deductible. The IRS considers those personal penalties regardless of when they happen.
4. Insurance
If you use the actual expense method, you can deduct the business-use portion of your car insurance.
Car insurance is already included in the standard mileage rate, so you cannot deduct it separately if you go that route.
As an independent contractor, you can also deduct health insurance premiums if you're not eligible for coverage through a spouse's employer. This deduction applies to medical, dental, and vision coverage for you and your dependents.
5. Work-Related Education and Training
Courses or training directly related to your gig work are deductible. A defensive driving course, a food handler certification, or a business finance class all qualify. Keep the receipt and a note on how it relates to your work.
6. Tax Preparation Fees
The cost of hiring a tax professional or purchasing tax software is deductible. Since gig workers file more complex returns than W-2 employees, this expense adds up and it's worth claiming.
Your Solo subscription is also deductible as a business expense since it's a tool you use to track income, mileage, and taxes for your gig work.
7. Business Licenses and Fees
Background check fees and licensing costs required by platforms like Uber, Lyft, DoorDash, or Grubhub are deductible business expenses. Keep your receipts from the onboarding process.
8. Phone and Delivery Accessories
Phone mounts, car chargers, charging cables, and portable batteries are all deductible. For food delivery drivers, insulated bags, drink carriers, and pizza bags are deductible since most platforms require or recommend them.
Other deductible equipment includes EV chargers, first aid kits, floor mats, drink holders, and car seat covers, as long as you use them for work.
Frequently Asked Questions About Claiming Expenses as a 1099 Driver
What kind of records should I keep as a rideshare driver?
Keep receipts for every business expense throughout the year. For mileage, the IRS requires a log with the date, start and end location, business purpose, and miles for each trip. Tracking as you go is far easier than reconstructing records in April.
Tips for staying organized:
- Use Solo: Solo automatically tracks your mileage and matches trips to your platform activity. You can also log expenses, upload receipts, and export reports when you're ready to file. Connect your bank account through Solo's Plaid integration and the app will automatically pull in your transactions — so your work expenses show up without you having to enter them manually.
- Keep digital copies: Scan or photograph receipts and save them in a folder. Physical receipts fade and get lost.
- Separate business and personal finances: A dedicated bank account or card for gig income makes it much easier to see what's deductible at a glance. Solo's bank connection through Plaid makes this even easier — once you connect your account, you can classify transactions as work or personal right inside the app.
What expenses can I claim as a delivery driver?
Business-related expenses including mileage, work equipment (delivery bags, phone accessories), your phone plan, your Solo subscription, parking, tolls, and health insurance premiums if you're self-employed. All of these reduce your taxable income on Schedule C.
How do I track my miles as a delivery driver or rideshare driver?
Solo's automatic mileage tracker records your trips in the background and matches them to your platform rides and deliveries. You don't have to start or stop tracking manually. At tax time, you can pull a mileage report directly from the app.
How do I know how much I'll owe in taxes as a delivery driver?
Solo's Tax Projection feature uses your tracked income and expenses to estimate what you'll owe. Staying on top of that number throughout the year helps you set aside the right amount and avoid surprises on Tax Day.
Final Thoughts on Claiming Expenses as a Rideshare Driver or Delivery Driver
Tracking your expenses takes a few minutes a week but can save you hundreds or thousands of dollars at tax time. The deductions are legitimate and the IRS expects you to use them. You just need the records to back them up.
Solo's built-in expense tracking, automatic mileage syncing, and Plaid bank connection make that easy. Download the Solo app and start tracking today.
This post is for general informational purposes and does not constitute tax advice. Consult a tax professional for guidance specific to your situation. IRS mileage rates are updated annually. The 2026 business mileage rate is 72.5 cents per mile per IRS Notice 2026-10.
