BEST Tax Deductions For Independent Contractors (CFP Explains!)

As an independent contractor it's critical that you understand your tax liabilities and the potential to include tax deductions when filing your taxes. In this video I speak with guest Stephanie McElheny (CFP, EA, ChSNC), President of Financial Planning at Aspen Wealth Strategies as we target the best tax deductions available to you.
⚡️Best Side Hustle Accessories: www.amazon.com/shop/yourdrive...
🖥Dominate Your Side Hustle: www.yourdrivermike.com
💻Contact Stephanie: [e-mail]
🔑Join As A VIP: / @yourdrivermike
🖥Video Timecodes🖥
0:00 - Intro
0:47 - Meet Stephanie
2:26 - What Is A Tax Deduction?
2:45 - What Qualifies As A Tax Deduction?
3:35 - Are There Restrictions On My Tax Deductions?
5:26 - Is There A Limit To How Many Deductions I Can Take?
6:28 - What Are The Best Deductions For Independent Contractors?
7:34 - Actual Expense Method vs Standard Mileage (Vehicle Deductions)
9:26 - Commonly Missed Deduction Opportunities
12:03 - What Happens If I Show A Financial Loss When Filing?
14:01 - Net Operating Loss (NOL)
15:45 - Continued Annual Losses When Filing (Hobby Classification?)
18:01 - Have Questions? Contact Stephanie
💰MAKE MONEY:
►Sign Up For DoorDash: www.doordash.com/dasher/signup/
►Sign Up With Uber: www.uber.com/a/us/
►►Sign Up For Postmates: pmfleet.app.link/M34t637R2R
►Sign Up For Amazon Flex: flex.amazon.com
►Sign Up For Shipt: www.shipt.com/be-a-shopper/ (ref: #331728)
►Sign Up For COIN: coin.onelink.me/ePJg/b7d56d5f
►Start Your Online Course Business With Podia: www.podia.com/?via=yourdriver...
►Receive A Free Stock Up To $500, Guaranteed: join.robinhood.com/michaes21813
💸SAVE MONEY:
►Save On Uber Eats Orders: Use Code “eats-mikes1003”
►Save On DoorDash Orders: drd.sh/YmxMip/
►Save On Grubhub Orders: fbuy.me/mkFVC
►Save On Postmates Orders: postmat.es/AbXS8Qm6JU
►Find The Best Online Coupons, Automatically: www.joinhoney.com/ref/i1q6bqp
►Get Free Groceries With Shipt: share.shipt.com/Bjv36
►Get 20% Off Your First Fiverr Purchase: www.fiverr.com/s2/187f0689db
►Get $25 Off Your First Turo Car Rental: turo.com/c/mikej1
►Try Amazon Prime For Free: amzn.to/2WRGlGD
🎥CREATOR TOOLS:
►Best AI Editor (What I Use): www.opus.pro/?via=yourdrivermike
►Easiest Live Streaming Platform (Try It For Free): streamyard.com?pal=6418827313676288
►The #1 Rated KZbin Channel Management Toolkit: www.tubebuddy.com/yourdrivermike
►Gear Of The Day: amzn.to/3pIzivx
QUESTION - Have more questions for Stephanie? Let us know in the comments section of this video.
Email for business: [e-mail]
Instagram | Twitter: @YourDriverMike
#yourdrivermike #taxes #taxdeductions
Disclaimer: This video does not purport to be investment advice nor meant to be taken as such. Prior to investing, you should consult with a Certified Financial Planner to ensure that you are making the best decisions for your personal situation after a complete review of your entire financial picture. Any opinions are those of Stephanie McElheny and not necessarily those of Aspen Wealth Strategies. Expressions of opinion are as of this date and are subject to change without notice. The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to herein. We do not guarantee that the foregoing material is accurate or complete. There is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct. Investing involves risk and you may incur a profit or loss regardless of strategy selected, including through diversification and asset allocation.
Affiliate Disclaimer: This video and/or description contains affiliate links, when shopping or signing up for apps using these links I’ll receive a small commission.

[@YourDriverMike]

⚡️For an entire playlist covering tax deductions, filing, forms and more click here: kzbin.info/www/bejne/n4STeXqjo5KFh7s

[@iU0n]

This answered so many questions! Y’all are both awesome!

[@jeffb.4800]

Mike you have excellent interviewing skills. I've always wondered if you were an employee for doordash and they pay you make all these videos

[@Leeslaughtr]

Very helpful info. Big props thank you!

[@laurennicole9559]

I noticed there is a $12,000 for single or $24,000 deduction minimum whether you’re filing single or jointly to receive credit but does that apply to independent contractors? I started driving for door dash and I’m having a hard time figuring out if I’ll be able to get the $.56 per mile back at the end of the year or if I have to meet the $24,000 (filing jointly)before I would get credit for anything. Doing this part time I will never meet that

[@SonOfAGun1814]

if you itemize instead of using the standard mileage deduction can you still claim mileage in your itemized or is it either or?

[@JTStonne]

I didn't hear the question, does the mileage deduction only count for active deliveries or all driving with app on? Coming back from an out of zone area is still work.

[@M6DAfterBurner]

Thanks Mike

[@mariobravo9838]

Hey guys great info. Can you guys share a few example of someone who made x amount of money and deducted x amount of itmes. Diff possible scenario s on a white board. Thanks

[@wakeywakey8603]

Are moving violations tax deductible? And can we take the IRS mileage deduction AND car rental fees?

[@river_a]

What’s your take on opening a business account solely for gig economy jobs to make expenses more easy to track.I just started doing it last week(about 3hrs a day) did well enough to consider buying a $1200 beater car just for this.Can the purchase of this vehicle be deducted from my taxes.

[@stephaniemcelheny4766]

Hey Marvin - having a separate business account is a great idea! And you can't outright deduct the car but you can deduct maintenance costs, gas, etc. annually if you go that route vs using the standard mileage rate. Basically, if you only use the vehicle in your business then you can deduct all "ownership" costs each year. I hope that helps!

[@donaldcapitali9091]

I’m an independent contractor working as a trade show floor manager. I work in cities away from my tax home. Am I allowed a per diem deduction for meals for the cities I’m working in? Also, some shows add a per diem to my daily rate, is this a deduction from my 1099 total?

[@Hermosacomolarosa]

I’d like to know what tax deductions an HHA has

[@Hugh589]

Could you get guests who experience the Canadian perspective in terms of taxes, earnings, and costs?

[@justcruisinmom1682]

Is mileage doing IC deductible to first shop and home? As well as after shopping and delivering is the mileage back to the store for next shop deductible?

[@stephaniemcelheny4766]

Hi - this is a great question. Yes, they should be but I would always consult with your tax professional first just to be sure.

[@Human_Evolution-]

Is there a list so I do not have to watch this and take notes?

[@Chile2011]

12:45 Maybe one could consider it a hidden gem. I had not heard of being able to deduct half of the self employment tax, which is a whopping 15.3%. Quick question: are sharing plans like medishare 100% deductible?

[@Paula-bh7rp]

My question is with a 50 / 50 cent per mile allowance for gasoline in maintenance and all of that that is amount is way higher than actual expenses if I drive 3000 miles a month using a 50 cent or more calculation that's $1,500 a month that's more than half of what I make where is if I use the actual it would be way less cuz I don't know how to estimate the wear-and-tear on my car other than actual repair bills

[@race29dub]

If the standard deduction for an individual is over $12,000....would you not need to show deductions over that amount to even make it worthwhile tracking them. You would have to drive over 21,000 miles/year (400 miles/week) to get to that amount. I know that's happened to me in the past with jobs that have a W-2. Maybe a 1099 is different?

[@JADiaz10]

How are you supposed to track your miles? These apps don’t have that listed to keep track…

[@TheAriasFam]

I used my car for work and personal use. Are maintenance or repairs deductible?

[@Mikecreation1]

yes

[@AmandeepSingh-ft8xz]

Hey Mike, Are we tracking dash time mileage or active mileage (for taxes)? Kind of annoying to do active mileage because I have to keep turning trip on and off even while I'm driving most the time..I forgot to track my mileage. It's devasting because there was a week I made 1200 and another I made 1737..

[@edwinroyal9734]

That's the same question I have! Did you find the answer?

[@edwinroyal9734]

Doordash just sent me my dash time mileage and active mileage but I don't know which one to use!

[@AmandeepSingh-ft8xz]

@@edwinroyal9734 i think we can track active time and dash time. Becuz we have to drive back to Hotspots. Just start the tracker from beginning and leave it on for the day until you're done with shift.

[@edwinroyal9734]

@@AmandeepSingh-ft8xz thanks!

[@margaretlindquist2882]

You should be tracking your mileage for the whole time you are actively working. You start you mileage when you start your shift and end it when you end your shift. This includes dead driving back to an area to get more jobs and moving to different areas in search of jobs. If you do any personal driving through your shift, end the mileage when you head to do whatever you are doing that does not have anything to do with your work. Then start it again when you get back to work related driving. The apps only track active mileage. You are allowed to claim all work related mileage.

[@MayJah55]

Can a deduct a rental car

[@HugoLopez-nm1qn]

can I deduct property taxes on my car? this might be a stretch lol

[@Mr.Coffee117]

I know this video is a year old but is it to late to ask questions?? Thank you

[@snazzyjazzyshar]

❤ 7:14

[@thenobleone-3384]

Mike I let them knew that I couldn't find a lot of homes when I was in Chicago. It wasn't easy delivering in Chicago I wasn't from there and I got lost many times trying to deliver on a Bike.

[@Bill_WTW]

Please explain about Uber with a 1099K or not getting a 1099K and have to use Yearly Earnings because you made less than $20,000?

[@stephaniemcelheny4766]

Hi Bill, we actually cover that in this video: kzbin.info/www/bejne/kHjTZaqbo82GmqM&ab_channel=YourDriverMike

[@Bill_WTW]

@@stephaniemcelheny4766 I went through this youtube again and don't see an answer. I did get a 109NEC but it nowhere near the amount that I made. Doing research Uber also sends out a 1099K however only if made more than $20,000. I did not make over that amount, not per my yearly earnings report. The 1099NEC amount on line 1 is only about 7% that I made. Confused. Thanks

[@stephaniemcelheny4766]

@@Bill_WTW Hi Bill, the 1099-NEC video covers this. But you'll have to contact the company directly if you 1) didn't receive a 1099 or 2) it's incorrect. And 1099-NECs will be sent out if you made over $600. I'm not sure where the $20,000 yearly earnings thing comes from, I've never heard of that. But you have to report what's on your 1099-NEC - you don't use a different calculation if you made less than $20,000.

[@Bill_WTW]

@@stephaniemcelheny4766 can I email you my annual statement and my 1099NEC

[@Bill_WTW]

@@stephaniemcelheny4766 This is from Uber Web site: Your tax documents There are 4 types of tax documents you could receive from us: Tax summary: An unofficial tax document produced by Uber and provided to every driver and delivery person who uses the Uber app. Your tax summary includes a breakdown of annual earnings and business-related expenses that may be deductible. 1099-K: An official IRS tax document that includes all on-trip gross earnings. Not all drivers and delivery people will receive a 1099-K. Only drivers and delivery people who made more than $20,000 in customer payments and provided at least 200 rides or deliveries will receive a 1099-K. See the IRS website for more information. Note: Certain states have implemented lower reporting thresholds. Therefore, you might receive a 1099-K for amounts that are below $20,000. In addition, drivers and delivery people who have backup withholding during the year will receive a 1099-K regardless of any federal or States thresholds. Backup withholding tax will be reported in Box 4 on 1099-K form. 1099-NEC: An official IRS tax document providing a summary of promotion, referral, and other miscellaneous payments for the year. Only drivers and delivery people who received $600 or more of these types of payments will receive a 1099-NEC. Form 1099-NEC is not a replacement for Form 1099-MISC. Form 1099-NEC is only replacing the use of Form 1099-MISC for reporting independent contractor payments. 1099-MISC: An official IRS tax document providing a summary of other income such as prizes, legal settlements, etc. Only drivers and delivery people who received $600 or more of these types of payments will receive a 1099-MISC.

[@ekp-g205]

My forms, files and receipts got stolen with my car. I lost everything. I drove for Postmates. My guess is I am screwed.

[@stephaniemcelheny4766]

Hello - you should be able to have your 1099-NEC forms re-sent (if that's what you're referring to). In terms of receipts, I would hope there would be a record of that in your apps. For mileage, I would just use the information in the app plus your travel history (I know Google maps typically stores this) and then do your best to estimate. As long as you make a best effort and keep record your reasoning for everything, you should be good.

[@thenobleone-3384]

Mike is their any way u could help me? I wouldn't be poor if I didn't get deactivated from Door Dash? Please. I'm trying to move to Oregon so I can start with Postmates. I'm not a fan with Door Dash at all. I didn't get treated fairly.

[@lrm3924]

Bunch of word salad