10 Tax Deductions Gig Workers Miss Every Year (That Could Save You Hundreds)
- by Jason Dinesen
- Published on:
- 1027
Every gig worker knows about mileage. Most know about phone expenses. But there are deductions that consistently go unclaimed legitimate write-offs that reduce your taxable income and lower your tax bill simply because drivers don’t know they exist.
The IRS taxes you on your net earnings, not your gross income. That means every deduction you miss is money you didn’t have to pay but did anyway.
Here are 10 tax deductions gig workers miss every year, with enough detail to actually use them.
1. Miles You Drove But Didn't Track
Most drivers know mileage is deductible. Far fewer track every mile they’re entitled to.
The IRS standard mileage rate for 2026 is 72.5 cents per mile from January through June and 76 cents per mile effective July 1, 2026, following a mid-year rate increase. At 76 cents, every 1,000 untracked business miles costs you $760 in missed deductions.
What counts as a deductible mile:
- Driving to your first pickup of the day from home
- Miles between deliveries or rides
- Driving to a gas station while on shift
- Driving to pick up supplies for your car (phone mounts, chargers, etc.)
- The drive home after your last delivery
Deadhead miles driving without a passenger or order count too. If you were on the app and available, those miles are business miles. Use a tracking app like Stride or MileIQ from day one. Check out our full breakdown of mileage and vehicle expense deductions for everything you need to know.
2. Your Phone Bill
Your smartphone is essential to your gig work you can’t accept rides or orders without it. The business-use portion of your monthly phone bill is fully deductible.
If you use your phone 70% for gig work and 30% for personal use, you can deduct 70% of your monthly plan cost. That includes your monthly service charge, any data add-ons, and even the cost of a new phone if you purchased one primarily for work.
Keep your monthly statements and make a reasonable estimate of your business-use percentage. A phone costing $80/month with 70% business use = $672 in deductions annually.
3. Phone Mounts, Chargers, and Accessories
The accessories that make your phone usable in the car dashboard mounts, car chargers, wireless charging pads, Bluetooth speakers for navigation are all deductible business expenses.
These are small amounts individually, but they add up over a year. Save your receipts. These go on Schedule C under “Supplies.”
4. Insulated Bags and Delivery Equipment
Delivery drivers DoorDash, Instacart, Uber Eats, Amazon Flex regularly purchase insulated bags, hot bags, and delivery backpacks to keep orders at temperature. These are 100% deductible business expenses.
If you bought multiple bags throughout the year, all of them count. The same applies to cargo organizers, bike equipment for cycling couriers, or any other equipment you purchased specifically for deliveries.
5. Car Washes and Detailing
Keeping your vehicle clean is a legitimate business expense for rideshare drivers passengers expect a clean car, and platforms have cleanliness standards. A reasonable number of car washes per year are deductible.
This one gets missed constantly because drivers don’t think to save receipts for something that feels like a personal expense. For rideshare drivers especially, it’s clearly a business cost. Track it throughout the year rather than trying to reconstruct it at tax time.
6. Tolls and Parking Fees
Tolls and parking fees paid during active business use are deductible — and importantly, they’re deductible on top of the standard mileage deduction. The mileage rate covers fuel, depreciation, and maintenance, but tolls and parking are separate.
If you pay $8 in tolls on a busy day and work 250 days a year, that’s $2,000 in potential deductions you might be ignoring. Keep digital records most toll accounts have transaction history you can export at year-end.
7. Roadside Assistance Plans
AAA membership or any similar roadside assistance plan used for your vehicle qualifies as a deductible business expense especially for drivers who depend on their vehicle for income. A breakdown that sidelines your car sidelines your earnings.
Deduct the business-use portion of the annual membership cost. For full-time gig workers, the entire membership fee may be deductible.
8. Snacks and Amenities for Passengers
Rideshare drivers who provide water bottles, mints, phone chargers, or other amenities for passengers can deduct the cost of those supplies. These are customer-facing business expenses exactly what the IRS allows on Schedule C.
Keep your grocery receipts when you buy supplies for your car. Even small amounts $30–$50 per month in supplies add up to $360–$600 in annual deductions.
9. Health Insurance Premiums
If you pay for your own health insurance medical, dental, or vision and you’re not eligible for coverage through a spouse’s employer plan, you can deduct 100% of your premiums as a self-employed individual.
This is an above-the-line deduction, meaning it reduces your Adjusted Gross Income directly no itemizing required. It applies to ACA Marketplace plans, private insurance, and even COBRA premiums if you’re transitioning from a W-2 job.
We covered this in detail in our blog on health insurance deductions for gig workers it’s one of the biggest missed deductions there is.
10. A Portion of Your Home Internet Bill
If you use your home internet connection for gig-work-related tasks checking the app, reviewing earnings, managing your account, doing tax research the business-use portion of your monthly internet bill is deductible.
Like the phone deduction, estimate your business-use percentage reasonably. Even 20% of a $60/month internet bill is $144 per year. It’s not a huge amount, but combined with everything else on this list, every deduction adds up.
How Much Could These Deductions Actually Save You?
Let’s put it together. Here’s a realistic estimate for a full-time gig worker who tracks everything:
|
Deduction |
Estimated Annual Amount |
|
Untracked miles (1,000 extra miles @ 76¢) |
$760 |
|
Phone bill (70% of $80/month) |
$672 |
|
Phone accessories & supplies |
$150 |
|
Insulated bags & delivery equipment |
$200 |
|
Car washes |
$300 |
|
Tolls |
$500 |
|
Roadside assistance |
$75 |
|
Passenger amenities |
$400 |
|
Health insurance premiums |
$4,800 |
|
Internet bill (20% of $60/month) |
$144 |
|
Total additional deductions |
$8,001 |
At a combined federal income and self-employment tax rate of around 28%, that’s roughly $2,240 in tax savings from deductions most drivers miss entirely.
The Key: Track Everything Year-Round
The difference between drivers who maximize their deductions and those who don’t isn’t knowledge it’s habits. The deductions above are legitimate, IRS-approved write-offs. But they only reduce your tax bill if you actually claim them and you can only claim them if you’ve kept records.
The IRS requires contemporaneous records meaning you track expenses as they happen, not from memory months later. A photo of a receipt, a note in your mileage log, an entry in a tracking app. Small habits that pay off significantly at filing time.
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Conclusion
Submitting your W-9 correctly protects your income. When you provide accurate information on time, you avoid backup withholding, payment delays, and unnecessary IRS issues. For gig workers, treating the W-9 as standard business paperwork is one of the simplest ways to keep earnings steady and tax reporting clean.
From 1099-NEC and 1099-K to W-2 income and filing support, WBB Gig Taxes helps gig workers, drivers, and freelancers across the U.S. stay compliant and maximize their refunds. With the W-9 form explained, it’s time to get your tax forms right, avoid costly mistakes, and focus on growing your gig income with confidence.
FAQs
Do I need receipts for every deduction?
Yes, the IRS expects you to substantiate your deductions with documentation. For small purchases, a photo of the receipt saved to your phone works fine. For mileage, a contemporaneous log showing dates, locations, and business purpose is required.
Can I deduct expenses if I didn't make much money this year?
Your deductions can reduce your taxable income but generally can’t exceed your net self-employment income for most above-the-line deductions. However, business expenses on Schedule C can reduce gross income to create a lower net which then reduces both income tax and self-employment tax.
What if I do gig work part-time alongside a regular job?
Your gig work deductions still apply to your self-employment income they’re reported on Schedule C regardless of whether you also have W-2 income. Just make sure expenses are tied to your gig work, not your regular job.
Stop Leaving Money on the Table
Every dollar of legitimate deductions you miss is a dollar you paid to the IRS unnecessarily. The deductions on this list are real, IRS-approved, and available to every gig worker who tracks them.
At WBB Gig Taxes, we make sure nothing gets left behind. We know how 1099 income works, which deductions apply to your specific platforms, and how to file your return accurately so every dollar you’re entitled to stays in your pocket.
File smarter. Pay less. Drive on.
Jason Dinesen
