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Delivery Drivers, Inc.

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2008 Tax Information for DDI Affiliated Independent Contractors

Here are the key factors that you need to know when handling your taxes as a self-employed driver...

	You are self employed and are paid by your customers; not DDI or our clients
	There are two tax forms that you will use for the IRS...

- Schedule C: Download at http://www.irs.gov/pub/irs-pdf/f1040sc.pdf

- Schedule SE: Download at http://www.irs.gov/pub/irs-pdf/f1040sse.pdf

	Unless specifically itemized on your weekly settlement checks, DDI does not have any information regarding any gratuities you have earned from your customers so you will have to consult your own records regarding these totals.
	Due to the fact that, as an independent contractor, you have not paid any taxes to this point... it is important to take advantage of all business expenses incurred during 2008. Below are a few of the more common expenses, but if there are any questions regarding the eligibility of any other expenses please do not hesitate to ask.

Typical DDI Contractor Business Expenses

	DMV Reports
	Thomas Guides, map books, and/or GPS systems
	Clothing used for business purposes only (i.e. jackets, aprons, shirts w/ logos, etc.)
	Background Checks (if applicable)
	Automobile Expenses: There are two ways to deduct your auto related expenses

a. The 2008 Standard Mileage Deduction is split"

i. January - June: $.505 per mile

i. July - December: $.585 per mile

b. Itemization of various automobile related expenses

i. (Including gas, maintenance, new tires, depreciation etc.)

ii. For itemization, you are only allowed to write off the same percentage of your total itemized expenses as your total work miles on the vehicle versus your total miles on the vehicle for the year. For example, if you drove 10,000 miles for work and a total of 20,000 miles for the year, then you can deduct 50% of your total itemized expenses.

c. The IRS only allows you to take advantage of ONE of the two automobile write-offs.

If you have any questions regarding the eligibility of any other expenses please do not hesitate to contact us directly.