Can I write off an OnStar subscription on my 1099 if I’m an Amazon Flex driver?

by Nicole T. Buckman, CPA | Jul 27, 2018
askacpaicon

As an Amazon Flex driver, will I be able to write off a monthly OnStar protection subscription on my 1099?

Possibly, but in proportion to your business use vs. personal use of the car. As an Amazon Flex driver who receives a 1099, you will need to file a Schedule C and a Schedule SE. There will be several deductions you are allotted to take. Remember to keep all records and receipts of business expenses, such as mileage (not including commuting miles, i.e., from your home to the Amazon warehouse), purchase of small equipment (car phone charger/delivery equipment if applicable), etc.

You are allowed to deduct car and truck expenses. You may take actual expenses or standardized rates. Actual expenses would involve totaling your entire mileage for the year and separating out business miles from personal use miles. You would use this percentage on all car expenses: gas, license fees, insurance, repairs, and subscriptions. This is most helpful when there is a dedicated car for the line of work. Most drivers probably use the standardized mileage rate, which for 2018 is 54.5 cents per mile. Here you would take your business miles, multiply them by the standard rate, and enter them into line 9 on your Schedule C.

For more resources, check out PICPA’s Money & Life Tips, Ask a CPA, or CPA Locator.

Answered by: Nicole T. Buckman, CPA, is with Jones Kohanski & Co. PC in Moosic, Pa.

Disclaimer
The responses are based on the limited information provided by the questioner and apply the laws and regulations at the time of posting. Other options could arise as rules and regulations may change over time, including but not limited to the passage of the Tax Cuts and Jobs Act of 2017. They are intended to provide general information, not specific accounting or tax advice; they are not intended or written to be used and cannot be used for the purpose of avoiding or evading taxes or penalties under the IRS code or regulations. Views expressed do not imply an opinion of the PICPA, its officers, directors, employees, or members.
Financial FAQs

Search the most frequently asked finance and accounting questions and read the responses from PICPA members. Always consult a CPA before taking action.

Search