Ten things every gig worker should know before April.

Brief, IRS-cited tips. Updated for tax year 2024. Read in three minutes. Saved in your pocket.

• Tip 01

  Track every business mile

  Standard mileage is the largest deduction most drivers get

  • The 2024 IRS standard rate is 67 cents per mile.
  • At 18,000 business miles, that is a $12,060 deduction on Schedule C line 9.
  • Log every trip the day it happens. Stride, MileIQ, and Hurdlr run in the background.
  • Personal trips do not count. The commute from home does not count. Trips between deliveries do.

  IRS Pub 463 Ch. 4 · IRS Notice 2024-08

• Tip 02

  Save 25 to 30 percent of every payout

  Federal income tax stacks on top of 15.3 percent self employment tax

  • Self employment tax is 15.3 percent of net earnings (12.4 percent Social Security plus 2.9 percent Medicare).
  • Federal income tax adds another 10 to 24 percent depending on the bracket.
  • A separate bank account works. Move 25 percent of every weekly payout in. Pay from there.
  • Quarterly is safer than waiting until April.

  IRC §1401 · IRS Pub 505

• Tip 03

  File Schedule C if you net 400 dollars or more

  Threshold is low. A 1099 is not required for the filing rule to apply

  • Schedule C reports business income and expenses. Schedule SE computes self employment tax.
  • Both attach to Form 1040.
  • Required even when no platform sends a 1099.
  • Below 400 dollars net, income still goes on Schedule 1 line 8 but Schedule SE is skipped.

  IRC §1402(b) · Schedule SE instructions

• Tip 04

  Cash tips count as income

  Every dollar goes on Schedule C line 1, with or without a 1099

  • Platforms report platform earnings on 1099-NEC. Cash tips are separate.
  • Add cash tips to platform income before filing.
  • Bank deposits create a paper trail. Missing them later costs more than the tax.

  IRC §61 · Schedule C instructions Line 1

• Tip 05

  Pay quarterly when you expect to owe 1000 dollars or more

  Four due dates, not evenly spaced. Form 1040-ES

  • April 15. June 15. September 15. January 15 of the following year.
  • Pay via IRS Direct Pay at irs.gov/payments.
  • Safe harbor: pay 100 percent of last year's tax (110 percent when AGI was above $150K) and the IRS waives the underpayment penalty.
  • Form 2210 calculates the penalty when you miss.

  IRC §6654 · IRS Form 1040-ES

• Tip 06

  Half of self employment tax is deductible

  Schedule 1 line 15 reduces your AGI by 7.65 percent of net earnings

  • The IRS treats half the SE tax as the employer share and lets you deduct it above the line.
  • On $32,000 of Schedule C net profit, SE tax is roughly $4,521 and the deduction is roughly $2,260.
  • This deduction reduces AGI, which feeds every other downstream calculation.

  IRC §164(f) · Schedule 1 line 15

• Tip 07

  Home office only counts when use is regular and exclusive

  Most rideshare and delivery drivers do not qualify

  • The room cannot also be a guest room, kitchen, or family space.
  • Simplified method is 5 dollars per square foot up to 300 square feet.
  • A dedicated room used for dispatch and admin qualifies. A kitchen table does not.

  IRC §280A(c)(1) · IRS Pub 587

• Tip 08

  Year one mileage choice locks the vehicle in

  Pick standard mileage in year one or never get it on that car again

  • Standard mileage covers gas, depreciation, repairs, insurance, and maintenance in a single per mile rate.
  • Actual expense is the alternative. Once you pick actual on a vehicle, that vehicle stays on actual.
  • For most full time drivers, standard mileage wins by a wide margin.

  IRS Pub 463 Ch. 4

• Tip 09

  Section 179 lets you fully expense business gear in year one

  Up to $1,160,000 in 2024. Phone, laptop, dash cam, hot bag

  • Equipment used more than 50 percent for business qualifies.
  • Section 179 election is on Form 4562.
  • Lower the business use percentage and the deduction drops with it.

  IRC §179 · Form 4562

• Tip 10

  A 1099-NEC over 600 dollars triggers self employment tax

  Schedule SE plus Schedule C plus the half deduction on Schedule 1

  • Each platform sends a separate 1099-NEC. Add the income on Schedule C line 1.
  • Net profit on Schedule C line 31 flows to Schedule SE.
  • Two platforms means two 1099s but still one Schedule C.

  IRC §6041A · Form 1099-NEC instructions