Tax Write-Offs for Gig Workers
TaskRabbit taskers, Fiverr sellers, Upwork freelancers, and anyone earning income from on-demand gig platforms is self-employed. Regardless of the platform, your Schedule C captures all income and all legitimate expenses — including the platform fees themselves.
Top 5 Tax Write-Offs for Gig Workers
Platform Fees
100% deductibleService fees charged by Upwork (20%), Fiverr (20%), Freelancer.com, TaskRabbit, and other gig platforms are fully deductible commissions. Report gross income, then deduct the platform's cut.
Home Office
100% deductibleIf you complete gig work from a dedicated space at home — answering messages, delivering digital files, doing remote work — that portion of your home qualifies for the home office deduction.
Internet & Phone
100% deductibleGig workers rely on internet and phone for order management, communication, and delivery. Deduct the business-use percentage of both.
Tools & Equipment
100% deductibleAny tools, equipment, or supplies required to complete the gig tasks you offer — a handyman's tools, a graphic designer's tablet, a writer's software.
Vehicle Mileage
100% deductibleFor gigs requiring travel (TaskRabbit errands, moving assistance, delivery tasks), miles driven to complete jobs are deductible at $0.70/mile.
Common Mistakes to Avoid
- Reporting net earnings from gig platforms (after their cut) and also deducting the platform fee — pick one: report gross and deduct the fee, or report net and don't deduct the fee.
- Not making quarterly estimated tax payments — gig income has zero withholding and underpayment penalties apply.
- Forgetting that Venmo, PayPal, and Cash App payments for gig work are taxable income — the platform will issue a 1099-K when totals exceed $5,000.
- Missing the self-employed health insurance deduction if you pay your own premiums.
Recordkeeping Tips
- Connect all gig platform accounts and keep annual earnings summaries from each platform — they're essential for reconciling income and 1099s.
- Keep a log of every project, gig, or task completed with the platform, date, amount earned, and platform fee charged.
- Track vehicle mileage for every location-based task using a mileage app started at the beginning of each job.
- Set aside 25–30% of every gig payment into a separate savings account for quarterly tax payments.
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Start Tracking NowThis content is for informational purposes only and does not constitute tax advice. Consult a qualified CPA or tax professional for guidance specific to your situation.
