The Gig Worker's Tax Hack Guide

Track every mile, set aside 25 to 30% of each payout for taxes, and keep your gig money in its own bank account.

This guide is general information, not tax advice. Rules change and every situation is different, so check with a tax professional before you file. Some links on this page are affiliate links, which means I may earn a commission at no extra cost to you.

Mileage is usually your biggest deduction. For 2025, the IRS standard rate is 70 cents per mile, so 10,000 business miles adds up to a $7,000 deduction. The rate changes each year, so check IRS.gov for the current number.

Use an app like MileIQ to log every trip automatically. In my short demo, I show exactly how I use MileIQ to log drives and make tax season simple.

If you use your phone for work calls, navigation or deliveries, you can deduct the business-use share of your bill.

Example: if 70% of your phone use is gig work, 70% of the bill is deductible.

• Scan grocery and gas receipts to earn points.
• Redeem points for gift cards (gas, groceries and more), which lowers your operating costs.
• Keep screenshots of what you redeem with your other expense records.

Beyond mileage, you may be able to deduct gas, oil changes, car washes, insurance for business use, and repairs. Keep your receipts or use an app that sorts them for you.

Tax pro tip: most people choose either the standard mileage rate or actual car expenses, not both. Ask your tax professional which one works better for you.

Tolls and parking fees while you work are usually deductible. Don't skip the small stuff, because it adds up fast.

Check with your tax professional on what applies to meals and snacks.

As an independent contractor, nobody withholds taxes from your pay. Set aside about 25 to 30% of each week's income so April doesn't surprise you.

Your tax professional can help you set the right amount and the quarterly due dates.

Acorns rounds up your purchases to the nearest dollar and invests the spare change. You can also set up daily, weekly or monthly deposits. Even a few dollars a week builds the saving habit.

Open a separate bank account for your gig income, track every expense, and run it like a real business. This helps you:

• See your true profit
• Make smarter money decisions
• Find every deduction you qualify for

Ask your tax professional about these:

• Self-employment tax deduction: you can usually deduct part of your self-employment tax.
• Health insurance: if you pay your own premiums, they may be deductible.
• Home office: if you manage your gig work from a dedicated space at home, you may qualify.

☐ Mileage app running on every shift
☐ Daily log of miles, gas and earnings
☐ Phone bill business-use percentage worked out
☐ Receipts saved or scanned
☐ 25 to 30% of each payout set aside
☐ Separate bank account for gig income
☐ Appointment booked with a tax professional

Keeping more of what you earn is step one. Many drivers also want a second income stream that doesn't depend on being behind the wheel.

I partnered with The Home Business Academy (HBA) to build an online business alongside my driving. HBA provides:

• Step-by-step training on building online income streams
• Simple tools to grow your audience
• A supportive community of entrepreneurs