TallyO

April 15, 2026 is two weeks away. For most W-2 employees, that just means filing a return. For gig workers—DoorDash drivers, Uber and Lyft drivers, Instacart shoppers, and freelancers—it means two things hit on the exact same day:

1. Your 2025 tax return is due
2. Your Q1 2026 estimated tax payment is due

If you’re not ready, here’s exactly what to do.

What You Actually Owe (And Why It’s More Than You Think)

As a 1099 contractor, you’re responsible for taxes your employer would normally handle. That means:

• Self-employment tax: 15.3% on 92.35% of your net income
• Federal income tax: based on your tax bracket
• State income tax: varies by state

On $50,000 of gig income, that can easily add up to $10,000+ in total taxes. Most gig workers don’t realize this until April.

The Good News: You Can Write Off More Than You Think

Before you calculate what you owe, make sure you’re claiming every deduction you’re entitled to. These reduce your net income—which reduces your tax bill.

Mileage (your biggest deduction)

The 2026 IRS mileage rate is $0.725 per mile. If you drove 10,000 miles for work last year, that’s $7,250 in deductions off the top.

Other common deductions:

• Gas, car maintenance, and car washes
• Phone bill (business-use portion)
• Insulated delivery bags, dash cams, phone mounts
• Parking fees and tolls
• Health insurance premiums (if self-employed)
• Half of your self-employment tax

Two Deadlines on April 15

Deadline 1: File your 2025 return

This covers all income you earned from January 1 – December 31, 2025. If you drove for DoorDash, Uber, Instacart, or any other platform, report it on Schedule C.

Deadline 2: Pay your Q1 2026 estimated taxes

The IRS expects gig workers to pay taxes quarterly—not just once a year. Your Q1 2026 payment covers income earned January 1 – March 31, 2026. It’s due April 15 alongside your 2025 return.

Miss this and you’ll face a penalty on top of what you already owe.

What To Do Right Now

Step 1: Gather your income

Pull your earnings summaries from every platform—DoorDash, Uber, Lyft, Instacart. Any platform that paid you $600 or more should have sent a 1099-NEC. But report all income even if you didn’t get a form.

Step 2: Add up your deductions

Go through your records for the year—mileage logs, receipts, phone bills. Every dollar you find reduces your tax bill.

Step 3: Calculate what you owe

Use TallyO’s free calculator to find your real take-home after taxes and deductions. Or log into your TallyO dashboard and check the Tax Savings Tracker for your full breakdown.

Step 4: File or extend

File your return by April 15. If you need more time, file for an extension—but remember, an extension gives you more time to file, not more time to pay. You still owe what you owe by April 15.

Step 5: Make your Q1 estimated payment

Calculate 25% of your estimated 2026 tax liability and pay it at IRS.gov/payments by April 15.

Don’t Get Caught Off Guard Next Year

The best way to avoid a surprise tax bill is to track your income and expenses every month—not just in April. TallyO automatically calculates your quarterly tax estimates so you always know exactly what to set aside.