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There could be some truth to this based on the vehicle you drive. The IRS gives a flat per-mile deduction, which is an estimate of fuel, repair, maintenance, a
by phantom784 2y ago
There could be some truth to this based on the vehicle you drive.
The IRS gives a flat per-mile deduction, which is an estimate of fuel, repair, maintenance, and depreciation costs. If your actual vehicle expenses are lower, then you are making more money than your taxable income.
- astura 2y agoSure, you might be ahead a bit more than "on paper" but you still have significant expenses that were actually accrued. The context of this post was the person thought their "actual" salary didn't include their (significant) expenses and being eligible for deductions was just a bonus. They argued in the comments their salary was "really" their pre-deduction salary, I guess because that's what went into their bank account. They were also asking if they should just stop taking these deductions for a few years for some reason (I think to qualify for a mortgage), so they weren't exactly understanding finance. I wish I could find the post again, it was baffling.
- JumpCrisscross 2y ago> you still have significant expenses that were actually accrued It really depends on the numbers. If you're savvy, 1099 income lets you deduct quite aggressively, and I can see the IRS not really caring about delivery drivers' income.