The Gig Worker's Money Guide: Taxes, Deductions, and Finances by Platform

Every Gig Platform, One Money Guide

Whether you drive for Uber, deliver for DoorDash, shop for Instacart, sell on Etsy, or freelance on Upwork — the IRS sees you the same way: you're self-employed.

That surprises a lot of people. You might feel like you work for DoorDash or for Uber. But legally, you don't. You work for yourself. The platform connects you with customers, but you're an independent contractor, not an employee.

What does that mean in practice?

• You get a 1099 form at tax time, not a W-2
• No taxes are taken out of your pay automatically
• You're responsible for paying self-employment tax (15.3%) on top of income tax
• You need to make quarterly estimated tax payments throughout the year
• You can deduct business expenses to lower your tax bill

The basic tax rules are the same no matter which platform you use. But the deductions you can claim depend on what kind of work you do. A DoorDash driver's biggest deduction is mileage. An Etsy seller's biggest deductions are materials and shipping. A freelancer on Upwork deducts software and home office space.

This guide breaks it down by platform so you can find yours and see exactly what applies to you.

Rideshare and Delivery Drivers

If you drive for a living — whether that's moving people or moving food — your biggest tax advantage is the mileage deduction. At 70 cents per mile in 2026, driving 15,000 business miles means a $10,500 deduction. That alone can save you $2,000–$3,000 in taxes.

But mileage isn't the only thing you can deduct. Each platform has its own costs and gear. Here's what to know for each one.

Uber and Uber Eats

Uber drivers are some of the highest-mileage gig workers out there. Between pickups, rides, and deadheading (driving without a passenger to get to a better area), miles add up fast. Your mileage is by far your biggest deduction — and the one most drivers undercount.

Remember: every mile you drive while the app is on counts as a business mile, even when you don't have a passenger or delivery. Driving to your first pickup, repositioning between rides, and heading home after your last trip — these all count.

Key deductions for Uber drivers:

• Mileage — 70 cents per mile for all business driving (this is your #1 deduction)
• Phone and phone plan — the business-use percentage (you need your phone to work, so this is often 60–80%)
• Phone mount and charger — 100% deductible since it's only for work
• Car washes — keeping your vehicle clean for passengers is a business expense
• Roadside assistance — AAA or similar programs
• Parking and tolls — any you pay while working
• Water and snacks for passengers — if you provide these to get better ratings

For the full breakdown, including how to figure out your real earnings after expenses, read our complete Uber driver tax and earnings guide.

DoorDash

DoorDash drivers spend a lot of time on the road, but their trips tend to be shorter than Uber rides. The good news: those short trips still add up, and every mile counts. Many Dashers are surprised to find they drove 12,000–20,000 business miles in a year.

DoorDash also has some unique expenses that other gig workers don't. Hot bags, for example, wear out fast. And unlike rideshare, you're constantly getting in and out of your car, which means more wear on the vehicle.

Key deductions for DoorDash drivers:

• Mileage — every mile while the app is active, including driving to the restaurant, to the customer, and back to a busy area
• Hot bags and delivery bags — including replacements when they wear out
• Phone and phone plan — the business-use percentage
• Parking fees — especially in cities where you pay to park during pickups
• Car maintenance — if you use the actual expense method instead of standard mileage

Read the full guide: DoorDash driver taxes — what you owe and what you can deduct.

Instacart

Instacart shoppers have a unique mix of expenses. You're driving and shopping, which means your deductions span both categories. Mileage is still your biggest one, but don't overlook the physical gear you use every shift.

Full-service shoppers (who shop and deliver) have more deductions than in-store shoppers. But even in-store shoppers can deduct some expenses.

Key deductions for Instacart shoppers:

• Mileage — driving to the store, between orders, and to the customer's door
• Insulated bags and cooler bags — for keeping groceries at the right temperature
• Phone and phone plan — business-use percentage
• Comfortable shoes — yes, really. If you buy shoes specifically for shopping shifts, they're deductible as work-related supplies
• Hand cart or wagon — for hauling heavy orders

Read the full guide: Instacart shopper tax deductions — everything you can write off.

Shipt

Shipt shoppers have deductions very similar to Instacart shoppers. You're shopping, driving, and delivering — so the same categories apply. The one difference is that Shipt sometimes requires or recommends branded apparel.

Key deductions for Shipt shoppers:

• Mileage — same rules as Instacart: every business mile counts
• Insulated bags — for cold and frozen items
• Phone and phone plan — business-use percentage
• Branded shirts or apparel — if Shipt requires you to wear branded clothing, the cost is deductible (clothing that can only be used for work is a business expense)
• Hand cart or wagon — for large orders
• Comfortable shoes — same as Instacart

Read the full guide: Shipt shopper tax deductions — what you can claim.

TaskRabbit

TaskRabbit is different from the delivery platforms. You're doing hands-on jobs — furniture assembly, moving help, handyman work, cleaning, yard work. That means your deductions look more like a trades worker than a driver.

Mileage still applies if you drive to job sites. But your biggest deductions are often the tools and supplies you buy to do the work itself.

Key deductions for TaskRabbit workers:

• Tools — power tools, hand tools, drill bits, anything you buy for jobs
• Supplies — cleaning products, hardware, materials not provided by the client
• Mileage — driving to and from job sites
• Safety equipment — gloves, safety glasses, knee pads, back braces
• Platform fees — TaskRabbit charges a service fee on each job; this is a deductible business expense
• Phone and phone plan — business-use percentage

Read the full guide: TaskRabbit taxes — deductions and filing for Taskers.

Freelance Platforms

If you sell services or products online through a freelance marketplace, your deductions look different from delivery drivers. You're probably working from home, using software, and paying platform fees — all of which are deductible.

Upwork and Fiverr

Upwork and Fiverr are the two biggest freelance marketplaces. They connect you with clients who need writing, design, development, marketing, virtual assistance, and dozens of other services.

One thing that makes these platforms unique: the platform fees are significant — and fully deductible. Upwork takes 10% of your earnings. Fiverr takes 20%. Those fees are a business expense that reduces your taxable income.

Think about it: if you earned $40,000 on Fiverr, you paid $8,000 in platform fees. That's an $8,000 deduction most people forget to claim.

Key deductions for Upwork and Fiverr freelancers:

• Platform fees — Upwork's 10% or Fiverr's 20% service fee (this is a big one)
• Software and subscriptions — design tools (Adobe, Figma), development tools, project management, cloud storage
• Home office — if you have a dedicated workspace (simplified method: $5 per square foot, up to 300 sq ft = $1,500)
• Internet — the business-use percentage of your monthly bill
• Computer and equipment — laptop, monitor, keyboard, webcam, headset
• Professional development — online courses, books, certifications related to your work

Read the full guide: Upwork and Fiverr taxes — fees, deductions, and how to file.

Etsy

Etsy sellers have a unique set of deductions because you're often making a physical product. Your raw materials, shipping costs, and Etsy's various fees all reduce your taxable income — and they add up fast.

Etsy charges a listing fee ($0.20 per item), a transaction fee (6.5%), and a payment processing fee (3% + $0.25). If you use Etsy Ads, that's another cost. All of these are deductible business expenses.

Key deductions for Etsy sellers:

• Materials and supplies — fabric, yarn, beads, wood, paint, glue — anything that goes into your products
• Shipping costs — postage, shipping labels, and trips to the post office (mileage)
• Etsy fees — listing fees, transaction fees, payment processing fees, and Etsy Ads
• Packaging — boxes, mailers, tissue paper, stickers, thank-you cards
• Home office or workshop — the space where you create and store inventory
• Photography equipment — camera, lighting, backdrop for product photos

Read the full guide: Etsy seller taxes — fees, deductions, and inventory tracking.

Deductions Every Gig Worker Can Claim (Regardless of Platform)

No matter which platform you work on, these deductions apply to all self-employed people. Don't miss them.

• Mileage — 70 cents per mile in 2026 for all business driving. Or, if you prefer, you can deduct actual car expenses (gas, insurance, repairs, depreciation) based on the percentage of business use. You can only pick one method. Most gig workers choose standard mileage because it's simpler.
• Phone and phone plan — deduct the percentage you use for business. If your phone is 70% work, deduct 70% of your monthly bill.
• Internet — same idea. Deduct the business-use percentage of your home internet.
• Health insurance premiums — if you pay for your own health insurance and aren't eligible for coverage through a spouse's employer, you can deduct 100% of your premiums. This is one of the biggest deductions most gig workers overlook.
• Retirement contributions — money you put into a SEP IRA or Solo 401(k) reduces your taxable income. A SEP IRA lets you contribute up to 25% of net earnings. This saves you money now and builds retirement savings.
• Home office — if you have a space in your home used exclusively for work, you can deduct it. The simplified method is $5 per square foot, up to 300 square feet ($1,500 max). The regular method calculates actual costs based on the percentage of your home used for business.

For a complete list of everything you can deduct, read our guide to 40+ tax deductions for freelancers and gig workers.

The Tax Basics That Apply to ALL Gig Workers

Before you dive into your platform-specific deductions, make sure you understand the big picture. Here's a quick overview of how self-employment taxes work. (We cover each of these in much more detail in our other guides.)

You'll owe self-employment tax (15.3%)

This covers Social Security (12.4%) and Medicare (2.9%). When you had a W-2 job, your employer paid half. Now you pay both halves. This is on top of your regular income tax. For a full breakdown with real-dollar examples, read our complete freelancer and gig worker tax guide.

You need to pay quarterly estimated taxes

The IRS wants your taxes paid throughout the year, not all at once in April. You'll make estimated payments four times a year: April 15, June 15, September 15, and January 15. If you don't, the IRS charges an underpayment penalty.

Track everything from day one

Every dollar of income. Every business expense. Every mile you drive. The more you track, the more deductions you can claim, and the less you'll pay in taxes. Our step-by-step tracking system shows you exactly how to do this in 10 minutes a week.

If you haven't been tracking and need to catch up, we have a guide for that too: what to do if you forgot to track your expenses.

New in 2026: Tax Changes That Affect Gig Workers

The One Big Beautiful Bill Act made several changes that matter for gig workers starting in 2026:

• 1099-NEC threshold raised to $2,000. Clients who pay you less than $2,000 in a year no longer have to send you a 1099-NEC. (You still owe taxes on that income — you just won't get a form for it.)
• New tip deduction. If you receive tips as part of your gig work, there's a new deduction that can reduce your tax burden. This is especially relevant for rideshare and delivery drivers.
• Mileage rate update. The IRS standard mileage rate for 2026 is 70 cents per mile, up from previous years.
• 1099-K threshold unchanged. Payment platforms (DoorDash, Uber, Etsy, etc.) still use the $20,000 and 200 transactions threshold for sending 1099-K forms.

For the full rundown of what changed and what it means for your taxes, read our detailed breakdown of the One Big Beautiful Bill Act.