Deductions and records gig workers should ask about
Deductions lower the profit your taxes are based on. This is a question list built from IRS pages, not a ruling on what you can deduct.
Vehicle: mileage or actual expenses
Standard mileage rate (72.5 cents Jan - Jun 2026, 76 cents Jul - Dec) or actual costs (gas, repairs, insurance, depreciation) for the business share of driving. Tolls and parking are separate. See the mileage page.
Source: IRS Topic 510 · last verified 2026-10-17
Half of your self-employment tax
The 1040-ES worksheet subtracts 50% of your self-employment tax when figuring expected AGI.
Source: Form 1040-ES (2026) · last verified 2026-10-17
Tips deduction (2025-2028)
Qualified tips can be deducted up to $25,000 per return per year; for the self-employed it is limited to net income from the business where the tips were received. IRS says nearly 70 occupations are on the qualifying list, and the tips must be reported on an information return or Form 4137 or otherwise included in income.
Source: IRS Tax Tip 2026-26 (Mar 31, 2026) · last verified 2026-10-17
Qualified business income (QBI) deduction
IRS says the QBI deduction is now permanent for eligible gig workers. Eligibility and limits are on Form 8995 instructions.
Source: IRS Tax Tip 2026-26 · last verified 2026-10-17
Equipment such as a vehicle or computer
IRS says gig workers can deduct 100% of the cost of certain business equipment acquired after Jan 19, 2025, in the first year of use, if used more than 50% for business. Ask a preparer before choosing this over mileage.
Source: IRS Tax Tip 2026-26 · last verified 2026-10-17
Business expenses and home office
The IRS points gig workers to Publication 535 (Business Expenses) and Publication 587 (Business Use of Your Home).
Source: IRS: Manage taxes for your gig work · last verified 2026-10-17
Records
Keep receipts during the year and records of all income, even if you receive no 1099. Where to file: Schedule C (profit or loss) and Schedule SE (self-employment tax) with Form 1040.
Source: IRS: Manage taxes for your gig work · last verified 2026-10-17
Not covered here: health insurance, retirement contributions and other adjustments. We have not verified rules for them yet; ask a preparer or see IRS publications.