Claiming Pizza Delivery Mileage On Your 2008 Taxes

Each year I post about how to claim your pizza delivery mileage on your taxes. Last year's post is very detailed and even includes a scanned image of the 1040.

What you need to know:

1. There are 2 methods: Actual expenses or mileage. Unless you are driving a newer car that you are still making high payments on, it is usually better (and almost always simpler) to use the mileage method.
2. If you claim expenses, you must also claim your reimbursements.
3. To claim your expenses, you must itemize your deductions on Schedule A. Unless you have a mortgage and pay a bunch of interest, or make large charitable donations, you are better off claiming the standard deduction.
4. Even if you itemize, your unreimbursed expenses must be at least 2% of your total income.

Well this year I did not claim my mileage. Due to my hernia surgery in June, my suspension in December for not using a car-topper, and generally working fewer shifts, I drove fewer miles.

My total delivery miles for the year were 3774 (compared to 7629 in 2007). This got me $976 in "unreimbursed employee expenses" on Schedule A, Line 24. However, this is less than 2% of my Adjusted Gross Income, so I did not get to claim this deduction for 2008.

I expect this is a common situation for most pizza delivery drivers, either the mileage was not over 2% of the AGI or, even more commonly, the pizza driver will not itemize deductions on Schedule A and instead will use the Standard Deduction.

On Time Pizza Surprise

On my first delivery tonight, the woman answered the door saying, "This is the first time ever the pizza has been on time."

To which I replied, "It must be the first time you've had me deliver it."

She paid and tipped $1. Then she said, "Seriously, it's been late like 4 times in a row." And I replied, "Well I'm glad we got it right this time."

But seriously, lady, $1? If I get the chance to take somebody else their food before hers next time, I won't hesitate.

My night started out pretty awful, at 5 deliveries I had only collected about $3.50 in tips. We have a new policy that drivers are supposed to declare $1.50 in tips per hour. Well the law says that I have to report all of my tips (if I collect at least $20 in tips in a month).

I have always reported all of my tips, which is generally way over $1.50 per hour. But every so often I have a crummy night and we are really slow. Like tonight, at the 3 hour mark I only had the $3.50. And I refuse to lie and inflate my tips above what they actually are.

Luckily for me, my last 2 deliveries of the night each tipped $5 and put me well over the $1.50 per hour rate.

My totals for the night were 5 hours of driving, 9 deliveries, 37 miles, and $18 in tips.

Economic Stimulus - Tax Rebate

As long as I'm on the subject of taxes, here is a tax rebate calculator based on the legislation passed by Congress and proposed by President Bush.

At $600 per adult and $300 per kid, I'll be getting a cool $2700. (My ex-wife claims 2 of the kids). According to CNN, checks should be in the mail in early May!

Claiming Pizza Delivery Mileage On Your 2007 Taxes

This is a new and improved version of last year's tax post. The images below are photocopies (with my personal info removed) of my actual 2007 tax forms as printed by TurboTax.

First, the disclaimer. I am not an accountant nor am I a professional tax adviser. I have, however, made understanding taxes a hobby of mine for years and I feel that I know them pretty well.

Many pizza drivers wonder if they can claim their mileage on their taxes. This post is directed towards them.

The answer to the question is, yes, you can. It goes on Form 2106, Employee Business Expenses, which then becomes an itemized deduction on your 1040 Schedule A Itemized Deductions.

If you want to read what the IRS says, start by reviewing Topic 510, Business Use Of A Car.

What you need to know:

1. There are 2 methods: Actual expenses or mileage. Unless you are driving a newer car that you are still making high payments on, it is usually better (and almost always simpler) to use the mileage method.
2. If you claim expenses, you must also claim your reimbursements.
3. To claim your expenses, you must itemize your deductions on Schedule A. Unless you have a mortgage and pay a bunch of interest, or make large charitable donations, you are better off claiming the standard deduction.
4. Even if you itemize, your unreimbursed expenses must be at least 2% of your total income.

I personally did claim my mileage this year. I always claim 100% of my tips also, so fear of being audited is not an issue for me.

You fill all this information out on IRS Form 2106.


For example, here is my info for 2007:

Start on form 2106, page 2

Line 11: Date vehicle placed in service: 1/1/2007
Line 12: Total miles: 18,514
Line 13: Business miles: 7629
Line 14: Pct business use: 41.19%
Lines 15-16: I put 40 miles (for my other job) and a total of 9280
Line 17: 1608 (18,514 - 7629 - 9280)
Line 18-21: Yes
Line 22: $3699

Since I use the mileage method, not the actual expenses method, I can leave lines 23-38 blank.

Now move to Form 2106, page 1
Line 1: Vehicle expense from 22: $3699
Line 2: Parking fees, etc: 0
Line 3: Travel expenses: 0
Line 4: Business expenses: 0 (if you are claiming a cell phone, flashlights, maps, etc this is the spot).
Line 5: Meals and entertainment: 0
Line 6: Total Expenses: $3699

Line 7: Reimbursements: $1792 (this is your nightly per-run money)
Line 8: 3699 - 1792 = $1907
Line 9: $1907
Line 10: $1907

Now this total $1907 goes to line 20 on Schedule A, Job Expenses.

So since I itemize anyways, this extra deduction of $1907 for me saved me a few hundred dollars in taxes. I keep a delivery log anyways and I just write down my starting & ending mileage each night.

Again, since I use the mileage method, I do not have to track my car repairs, gasoline costs, etc.




Note once again that I am NOT an accountant, but I am confident that this information is accurate. However, I am not giving any advice here, just letting you know what I did. Study this and compare it to your own situation, and review the IRS publications, and decide for yourself.

Income Taxes

If you haven't filed your taxes yet, click on over to Gina's Tax Articles for this month's Carnival of Taxes. Guess who got included?

That's right ... ME!

Claiming Pizza Delivery Mileage On Your Taxes

I didn't drive last night but I did finish up my taxes. Now, I am not an accountant nor am I a professional tax advisor. I have, however, made understanding taxes a hobby of mine for years and I feel that I know them pretty well.

Many pizza drivers wonder if they can claim their mileage on their taxes. This post is directed towards them.
The answer to the question is, yes, you can. It goes on Form 2106, Employee Business Expenses, which then becomes an itemized deduction on your 1040 Schedule A Itemized Deductions.

If you want to read what the IRS says, start by reviewing Topic 510, Business Use Of A Car.

What you need to know:

1. There are 2 methods: Actual expenses or mileage. Unless you are driving a newer car that you are still making high payments on, it is usually better (and almost always simpler) to use the mileage method.
2. If you claim expenses, you must also claim your reimbursements.
3. To claim your expenses, you must itemize your deductions on Schedule A. Unless you have a mortgage and pay a bunch of interest, or make large charitable donations, you are better off claiming the standard deduction.
4. Even if you itemize, your unreimbursed expenses must be at least 2% of your total income.

I personally did claim my mileage this year. I always claim 100% of my tips also, so fear of being audited is not an issue for me.

You fill all this information out on IRS Form 2106.

For example, here is my info for 2006:
Start on page 2
Line 11: Date vehicle placed in service: 1/1/2006
Line 12: Total miles: 23,585
Line 13: Business miles: 10165
Line 14: Pct business use: 43.10%
Lines 15-16: blank
Line 17: Other miles: 13240
Line 18-21: Yes
Line 22: $4523

Since I use the mileage method, not the actual expenses method, I can leave lines 23-38 blank.

Back to page 1
Line 1: Vehicle expense from 22: $4523
Line 2: Parking fees, etc: 0
Line 3: Travel expenses: 0
Line 4: Business expenses: 0 (if you are claiming a cell phone, flashlights, maps, etc this is the spot).
Line 5: Meals and entertainment: 0
Line 6: Total Expenses: $4523

Line 7: Reimbursements: $2241 (this is your nightly per-run money)
Line 8: 4523 - 2241 = $2282
Line 9: $2282
Line 10: $2282

Now this total $2282 goes to line 20 on Schedule A, Job Expenses.

So since I itemize anyways, this extra deduction of $2282 for me saved me a few hundred dollars in taxes. I keep a delivery log anyways and I just write down my starting & ending mileage each night.

Again, since I use the mileage method, I do not have to track my car repairs, gasoline costs, etc.

Note once again that I am NOT an accountant, but I am confident that this information is accurate. However, I am not giving any advice here, just letting you know what I did. Study this and compare it to your own situation, and review the IRS publications, and decide for yourself.