You’re probably self-employed
Most gig platforms treat workers as independent contractors. For tax purposes, that makes you self-employed: you report income and expenses on Schedule C, pay income tax, and also pay self-employment tax if you net $400 or more.
Which forms will you get?
- 1099-NEC: when a business pays you directly for services at or above the reporting threshold ($600 for payments before 2026; $2,000 for 2026). See 1099-NEC.
- 1099-K: when a payment app or marketplace reports your gross payments (more than $20,000 and 200 transactions federally, though some platforms send lower). See 1099-K.
- No form: you must still report all income.
Platforms may report gross amounts that include fees they keep, tips or amounts you later refunded. Compare the form with your own records and deduct the platform’s fees as a business expense if they were included in the gross.
Deductions to look for
- Vehicle: standard mileage rate (see rates) or actual costs. Many drivers use the mileage method because it’s simple. Track every business mile.
- Phone and data plan (business share).
- Supplies: hot bags, phone mounts, packaging materials, tools.
- Platform fees and commissions.
- Tolls and parking for business trips.
- Insurance specific to the work.
- Home office if you qualify (see rules).
Mileage: what counts for delivery and rideshare drivers
Miles driven while carrying a passenger or delivering an order generally qualify. Miles driven to a pickup area may also qualify depending on whether you’re traveling to the first stop or from home. Commuting from home to a regular workplace doesn’t qualify; gig drivers often don’t have a regular workplace, which makes more miles deductible, but the details matter. Keep a log and see IRS Publication 463.
Paying as you go
Because the platform doesn’t withhold, make quarterly estimated payments or increase W-4 withholding if you also have a W-2 job. A simple habit is to set aside a percentage of every payout in a separate savings account, with the percentage tuned to your income and state.
Record-keeping
- Download monthly or annual earnings summaries from each platform.
- Use a mileage app or paper log.
- Save receipts for expenses.
- Keep bank statements.
- Keep records for at least three years; see how long to keep records.
Common mistakes
- Ignoring income that has no 1099.
- Not tracking mileage in real time.
- Deducting personal expenses.
- Forgetting the state return or local business taxes.
- Not making estimated payments.
Is it a business or a hobby?
If you do it to make a profit, it’s a business. If it’s a hobby, income is still taxable, but expenses generally aren’t deductible. The IRS looks at factors such as whether you run it in a businesslike manner and have a profit motive.
Frequently asked questions
Do I have to pay taxes on gig income if I don’t get a 1099?
Yes. All income is taxable whether or not a form is issued.
Can DoorDash and Uber drivers deduct mileage?
Generally yes, for business miles, using the standard mileage rate or actual expenses, with a proper log.
Do gig workers need to pay quarterly taxes?
Usually, if you expect to owe $1,000 or more after withholding and credits.
Official sources
- IRS: Self-Employed Individuals Tax Center
- IRS: Standard mileage rates
- IRS: Understanding your Form 1099-K
- IRS: About Form 1099-NEC
- IRS: Estimated taxes
General information only — not tax, legal or financial advice. Tax figures change every year; verify the current numbers at IRS.gov or with a qualified professional. Read the full disclaimer.