🚗 New Tax Breaks for Delivery Drivers Under the OBBB
Tax Filing Guide for Food Delivery Drivers (2025 Update)
If you deliver food using apps like DoorDash, Uber Eats, Grubhub, or others, this guide explains how to file your taxes, track deductions, and reduce your IRS bill using Zoho Expense. This version reflects changes from the One Big Beautiful Bill passed in July 2025.
Are You an Independent Contractor or Employee?
Most delivery drivers are classified as independent contractors. That means you:
- Receive a 1099-NEC or 1099-K, not a W-2
- Must file Schedule C for your delivery income
- Owe self-employment tax on net income over $400
What's New Under the One Big Beautiful Bill?
- Tip Income Deduction: Deduct up to $25,000 in tip income through 2028 (phases out for income above $150,000).
- Overtime Pay Deduction: Deduct up to $12,500 ($25,000 for joint filers) annually through 2028.
- Auto Loan Interest Deduction: Deduct up to $10,000 annually on U.S.-made vehicle loan interest (subject to income limits).
Track Everything with Zoho Expense
Use Zoho Expense to capture:
- Mileage: 70¢/mile for 2025 – log each trip automatically
- Phone Usage: Deduct business use (e.g., 30% of your phone bill)
- Delivery Gear: Bags, mounts, uniforms
- Actual Car Costs: Gas, repairs, depreciation (if using actual method)
Quarterly Tax Payments
No taxes are withheld from gig payments. You must pay the IRS quarterly:
- April 15
- June 15
- September 15
- January 15
Use Zoho Books + Zoho Expense to project earnings and make estimated payments.
Audit-Proof Your Deductions
- Track all receipts digitally in Zoho Expense
- Keep a separate bank account for delivery income
- Maintain mileage logs & records for 3+ years
Need Help?
Want a tax pro to review your Zoho Expense logs or estimate your payments? Email us here.
Article updated with 2025 tax legislation. Prepared by Gbooks Solutions.
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