Gig Worker Tax Deductions: What Every 1099 Driver and Freelancer Can Write Off
Gig workers are self-employed
Whether you drive for Uber, deliver for DoorDash, or freelance on Fiverr, the IRS considers you self-employed. You'll receive a 1099-NEC (for services) or a 1099-K (from payment processors), and you must report that income on Schedule C of your tax return.
As a self-employed gig worker, you pay self-employment (SE) tax of 15.3% in addition to income tax. That's the bad news. The good news: you can deduct every legitimate business expense, significantly reducing your net taxable income. Most gig workers who track their expenses save hundreds to thousands of dollars at tax time.
Vehicle mileage: the #1 deduction for gig workers
Every mile you drive for gig work — to pick up passengers, deliver food, or meet a client — is worth $0.70 in deductions. Drive 20,000 miles in a year? That's a $14,000 deduction before anything else.
Calculate your mileage deductionImportant: Only miles driven for business qualify. Driving from home to your first pickup and back home from your last are typically not deductible (they're commuting). Miles between pickups and on-the-way-to-pickup miles do count. Keep a mileage log.
Deductions by platform type
Key deductions for rideshare drivers
- • Mileage (all miles with passengers + miles waiting for rides in active zones)
- • Phone mount, charger, USB charging cables for passengers
- • Water bottles, mints, or other passenger amenities
- • Platform service fee (the % Uber/Lyft takes from each fare)
- • Car washes and cleaning (actual expense method only)
- • Dash cam purchase and SD cards
Key deductions for delivery workers
- • Mileage (to restaurant/store, to customer, between deliveries)
- • Insulated delivery bags and carriers
- • Bike, scooter, or e-bike costs (if you deliver on two wheels)
- • Platform fees and commissions
- • Phone data plan (business portion)
- • Parking fees incurred during deliveries
Key deductions for platform freelancers
- • Platform service fees (Upwork charges 10%; that's deductible)
- • Home office (if you work from a dedicated space)
- • Computer, monitor, and peripherals (business use %)
- • Internet bill (business use %)
- • Software and subscriptions used for client work
- • Marketing to get new clients (Fiverr promoted gigs, etc.)
What gig workers commonly miss
The fees Uber, DoorDash, Lyft, Upwork, Fiverr, and other platforms take from your earnings are deductible business expenses. Many gig workers don't realize the platform commission itself is a write-off.
Using your phone for navigation, accepting orders, and communicating with customers is business use. The business percentage of your phone bill — including data — is deductible.
Insulated delivery bags, phone mounts, chargers, cargo organizers, and any equipment you use exclusively for gig work are deductible supplies.
If you use the actual expense method (not standard mileage), car washes and detailing to keep your vehicle clean for passengers are deductible.
Software you use to track and manage your business expenses — including MyTaxWriteOffs ($99/yr) — is itself a deductible business expense on Schedule C. Most gig workers never deduct the tools they use to file their taxes.
Frequently asked questions
Find every gig worker write-off automatically.
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✓ Your $99/yr subscription is itself a Schedule C tax deduction
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