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July 25, 2019

What Can You Expense as a Freelancer? The Drivers Edition

If you drive for a living, here’s a list of expenses you’re likely able to deduct from your income comes tax time.

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Have you ever found yourself surrounded by fellow freelance drivers talking about tax deductions? Were you the one politely nodding your head while having no idea what they were saying? Then you should read this and know that Lili’s tax tools are here for you!

When you come home from driving all day, the last thing you want to do is deal with your expense reports. Remember that with the Lili app, you can take care of categorizing your expenses on-the-go, while you wait for your next ride in the parking lot, instead of doing it on your own time.

But the question remains: as a driver, what can you actually categorize as a work expense?

So if you drive for a living, here’s a list of expenses you’re likely able to deduct from your income comes tax time (Keep in mind that if you use the same vehicle for work and life, you can only deduct the portions you use for work, so make sure to keep a mileage log of your work rides.).

Your ride

  • Car lease or loan payments,
  • Oil change or any maintenance,
  • Tires replacements or any repairs,
  • Floor mats,
  • Window covers…

You got it: pretty much everything that has to do with your vehicle!

Your work phone and phone plan

  • Cost of your device,
  • Your cellular and data monthly plan,
  • Cables,
  • Phone covers,
  • Phone stand…

Your phone is both your GPS and your main point of contact with your clients, so its costs are tax-deductible (remember, don’t text and drive!)

Your car insurance and registration fees

Your insurance premiums and your annual registration on your business vehicle are considered work expenses.

Parking

On the street or in a garage, you can deduct your parking fees for your business vehicle or while on a business trip.

Gas & Tolls

Gas burnt and tolls paid while you’re on the clock are all tax-deductible. Again, don’t forget to keep a mileage log and a record of which rides are business related.

Vehicle depreciation

Your car loses value over time and that value can be deducted from your taxes. Find out more information on car depreciation here.

Subscription to music services

What is a ride without a nice soundtrack?! Your subscription to Spotify, Sirius XM, Apple Music or any other music services count as a work expense.

Snacks and beverages

If you offer candies, bottled waters, peanuts, or champagne to your clients for a nicer ride, you can expense these purchases.

Travel

If you drive more than 100 miles for a client or to go work an event in a nearby city, this counts as a business trip. In which case, every expense you incur during that trip (hotels, 50% of your meals, gas…) can be deducted from your income comes tax time.

For more details and information, please refer to this IRS article regarding business expenses.

Click here for the Beauty Artist edition.

Click here for the Musician edition.

Click here for the Social Influencer edition

Click here for the Driver’s edition.

Click here for the Designer’s edition. 

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