Yes, pizza delivery drivers can write off mileage as a tax deduction, but it depends on how they are classified by their employer:
1. Self-Employed or Independent Contractors:
If you are an independent contractor or self-employed, you can deduct your business-related mileage on your tax return. This includes the miles driven while delivering pizzas. You can claim the standard mileage rate, which for 2024 is 67.5 cents per mile. This mileage deduction covers fuel, maintenance, insurance, and depreciation.
You can deduct this on Schedule C when filing your taxes, and it’s essential to keep detailed records of your mileage (such as with a mileage log or app).
2. Employees (W-2 Workers):
If you are classified as an employee (W-2 worker), things are a bit different. Under the Tax Cuts and Jobs Act (TCJA) of 2017, employees can no longer deduct unreimbursed employee expenses, including mileage, on their federal taxes through Schedule A (itemized deductions). This means that, as an employee, unless your employer reimburses you for mileage, you cannot write it off on your federal taxes.
Important Notes:
- Record Keeping: Keep accurate mileage logs showing the date, purpose, and number of miles driven for each trip. You can use apps or manual logs for this.
- Employer Reimbursement: Some employers offer a mileage reimbursement, which is tax-free as long as it doesn’t exceed the IRS standard rate.
Conclusion:
- If you’re an independent contractor, you can deduct your mileage related to deliveries.
- If you’re an employee, you generally can’t deduct mileage unless reimbursed by your employer.
Always consult with a tax professional to ensure you’re maximizing deductions and following IRS regulations.