How much do Postmates drivers make?
Everything you need to know about expenses and tax deduction

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How Much Do Postmates Drivers Actually Make?

If you have already read our article about how much are Postmates drivers paid, you already know the Postmates pay structure for drivers and you already know that it varies from city to city and from state to state. It’s important to consider that a part of a Postmate’s income comes from:

  1. Postmates Sign up Bonus

  2. Postmates Pay Stucture

  3. Postmates Daily Driver Bonus & Incentives. (Postmates gives bonus if you drive at certain times of the day)

  4. Postmates Tips

In this article we want to focus our attention on all those hidden expenses that you will sustain after signing up for Postmates and above all we want to give good suggestions to optimize them.

How much are Postmates driver expenses?

Whether it's rideshare or delivery, if you drive a personal vehicle for business you will have expenses. The advantage of working for Postmates is that at any time you want you can change the vehicle you use to make deliveries and optimize your costs by riding the bike for example.

Here is a checklist of all hidden expenses, which will help you understand how really a Postmate make.

  • Vehicle: whether you have bought or lease your vehicle, the amount that you have to pay represents the biggest expense.

  • Insurance: Postmates have insurance but the insurance coverage for Postmates drivers is minimal. You can check with a rideshare insurance agent to be sure you are correctly insured...

  • Gas: Rideshare & Delivery drivers are independent contractors. They must pay for their own gas, and are not refunded.

  • Parking: You are responsible for the expenses like parking tickets and fees, moving violations and ATM fees. Remember, however, that they can be claimed on your tax relief.

  • Vehicle maintenance: drivers are responsible for their own vehicle maintenance.

It is not possible to quantify all these expenses because rates of parking, gas and insurance can vary widely by location, age

Postmates Driver Expenses Infographic

infographic postmates driver expenses

How to save money if you make delivery with a car

I know, everyday life can be very stressful and demanding, but these small things will help you make your car more efficient, keep it in good conditions, delay big maintenance and then save money. Protect your investment and make it as safe as possible. Keeping your car in good condition can be as simple as checking fluids or tire pressure.

How to Extend the Life of your Car [Checklist]

Postmates Tax Deductions

As drivers of rideshare companies like Lyft or Uber, even the Postmates drivers are considered self-employed and they can claim deductions for work-related expenses saving money on their taxes.

We are not providing tax advice. Postmates is a driver friendly company.

They’ve partnered with Stride for all of your health insurance and tax season needs. That will be able to provide assistance with your tax return and give you accurate explanations on the different methods of deduction:

  • The standard mileage rate

  • The actual expenses

Find below some examples of commonly accepted deductions.

postmates tax deductions

Checklist of deductible expenses for Postmates Drivers

We have prepared for you a list of all deductible expenses and if you use a car to perform the deliveries and still do not use a track miles, maybe you should start.

  1. Car-Related Expenses

    As a Postmates driver, miles driven for work can be deducted from taxes. In terms of mileage self-employed people have access to the highest deduction rate and fewest restrictions.

    It exists different mileage tracking app, MileIQ is one of these and is available for Iphone or Android

  2. Car Interest Payments

    Loan interest is tax deductible if it’s a Business Vehicle. As delivery driver you can write off interest on your car loan payments. If you use your car for business & personal, you can only deduct the business portion. (50% of the interest if you use the car 50% of the time for business and 50% for personal use)

  3. Insurance

    You are self-employed and have to drive a car for your business. Automobile insurance premiums are tax deductible for the business portion.

  4. Gas

    You can claim gas on taxes as a deductible business expense, of course you can deduct only the gas costs that is business related.

  5. Cell Phone

    If you own a phone that’s completely dedicated to your work, 100% of the cost of the phone and the monthly plan is deductible. If your new cell phone acts as both your business and personal phone, you are only allowed to deduct the portion used for business from your taxable income.

  6. Parking and Tolls

    The parking fees (garages and meters) and tolls incurred while working are deductible. The IRS doesn’t require proof of parking and toll expenses at the time of filing but it requires you keep documentation.

Last Words

Working as a Postmates driver is a part-time, full-time job and a side income opportunity. The fact that there are no vehicle requirements and that at any time you can change the vehicle you use to perform the deliveries is an advantage. Why not ride during the weekend, for example? If you want to use a car, following some precaution, you will optimize your earnings.

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