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Gig Economy Expense Tracker
Driving for Uber/DoorDash and not tracking expenses? You're leaving $3k-8k on the table every year. Let's calculate how much you can deduct—because the IRS won't remind you, but they'll definitely audit you if you make stuff up.
Vehicle Expenses
Other Business Expenses
Tax Savings
💰 Estimated Tax Savings
At 25% effective tax rate:
At 35% effective tax rate:
Includes SE tax (15.3%) + income tax
Gig Worker Tax Deductions: The Stuff Uber Doesn't Tell You
Every mile you drive for business = $0.67 tax deduction. 15,000 miles = $10,050. At 30% tax rate, that's $3,015 saved. But 60% of gig drivers don't track mileage properly and lose this. Don't be them.
💡 Real Talk from Carlos Martinez, CPA
DoorDash driver, first year: disaster. Made $42k gross, spent $8k on gas/repairs, drove 22,000 business miles. Didn't track anything. Tax Time? Claimed $3k in expenses (random guess). Real deduction should've been: 22k miles × $0.67 = $14,740. Lost deduction: $11,740. Cost him $4,108 in extra taxes (35% rate). Second year I helped him: Stride app, tracked everything, deducted $16.2k, saved $5,670. Same income, $9,778 difference just from tracking properly.
The Golden Rule: Mileage vs Actual Expenses
Standard Mileage ($0.67/mile):
- Covers: gas, depreciation, insurance, repairs, registration—ALL vehicle costs
- Simple: track miles only
- Usually higher deduction
- Can ALSO deduct: parking, tolls, car washes
Actual Expenses:
- Deduct: gas, oil changes, repairs, insurance, depreciation, lease payments (business % only)
- Complex: save every receipt, calculate business %
- Better if: expensive car, major repairs, low MPG
- Can't switch: once you choose for a car, you're locked in
Example comparison (20k business miles, 30k total miles = 67% business):
- Mileage: 20,000 × $0.67 = $13,400
- Actual: $3,200 gas + $800 insurance + $500 repairs + $4,000 depreciation = $8,500 × 67% = $5,695
- Mileage wins by $7,705
⚠️ Common Mistake: Not Tracking Mileage Contemporaneously
IRS requires "contemporaneous" records—logged AS you drive, not reconstructed later. "I drove about 18k miles" = audit red flag = deduction denied. Use auto-tracking apps: Stride (free), MileIQ ($5.99/mo), Everlance ($60/year). GPS auto-logs every trip. One button: business or personal. Takes 3 seconds per trip. Saves $3k-5k/year. Don't be the guy who loses $12k deduction in audit because "I forgot to track."
What You CAN Deduct (And What's a Trap)
✅ Legit Deductions:
- Mileage: ALL business driving (pickups, deliveries, driving between gigs). NOT: home to first pickup ("commute"—IRS says no).
- Phone/Internet: Business % only. Track usage 1 month, calculate %. Typical: 50-70% for full-time gig workers.
- Supplies: Insulated bags ($30), drink carriers ($15), phone mount ($20), dashcam ($150).
- Parking/Tolls: Airport cell lot, metered parking, bridge tolls.
- Car washes: Keep car presentable for riders (Uber/Lyft required).
- Rideshare insurance add-on: $300-800/year extra for commercial coverage.
- Accounting software: QuickBooks Self-Employed ($15/mo), Everlance, Hurdlr.
❌ NOT Deductible:
- Traffic tickets (even if you got it while working)
- Commute to "pick-up zone" before going online
- Personal trips mixed with business (allocate properly or lose it)
- 100% of phone (IRS knows you text friends—claim 60-70% max)
- Gym membership "to stay alert" (nice try)
The Phone Bill Hack (Most Drivers Miss This)
Your $80/month phone bill is deductible IF you track business use. Here's how:
- Track 1 month: Log calls, data usage, app time for gig apps vs personal.
- Calculate %: 60% business, 40% personal (typical for full-time drivers).
- Deduct business %: $80 × 60% = $48/month = $576/year deduction.
- Phone purchase: Bought $1,000 iPhone? Deduct business % immediately or depreciate. $1,000 × 60% = $600 deduction.
Most drivers: $0 deducted. You: $1,176 deduction first year, $576/year ongoing. At 30% tax rate = $353-528 saved annually.
Best Mileage Tracking Apps (2025)
Free:
- Stride: Auto-tracks via GPS, categorizes trips, exports IRS-compliant reports. Best for: casual drivers (10-20 hrs/week).
Paid (Worth It):
- MileIQ ($5.99/mo): Swipe to classify trips, integrates with QuickBooks. Best for: full-time drivers.
- Everlance ($60/year): Mileage + expense tracking, receipt upload. Best for: organized drivers who want all-in-one.
- Hurdlr ($10/mo): Real-time P&L, estimated taxes, automatic categorization. Best for: multi-app drivers (Uber + DoorDash + Instacart).
All auto-track in background, battery-optimized. Set it once, forget it, save $3k-8k/year.
Real Numbers: Typical Gig Driver Deductions
Full-time Uber/Lyft driver (40 hrs/week):
- Gross: $52k/year
- Miles: 28,000 business
- Mileage: 28k × $0.67 = $18,760
- Parking/tolls: $600
- Car washes: $300
- Phone (60%): $576
- Supplies: $200
- Total deductions: $20,436
- Net profit: $52k - $20.4k = $31,564 taxable
- Tax savings vs no deductions: $20.4k × 32% = $6,540 saved
Part-time DoorDash (15 hrs/week):
- Gross: $18k/year
- Miles: 12,000 business
- Mileage: $8,040
- Insulated bags: $50
- Phone (40%): $384
- Total deductions: $8,474
- Net profit: $18k - $8.5k = $9,526 taxable
- Tax savings: $8.5k × 28% = $2,373 saved
Reviewed by Carlos Martinez, CPA
Gig Worker Tax Specialist (6 Years, 400+ Clients)
Carlos has saved gig workers $800k+ in taxes. His advice? Use Stride app (free), track EVERY trip, deduct $0.67/mile. Average savings: $4,200/year.
Frequently Asked Questions
What gig economy expenses are tax deductible?
Vehicle: Mileage ($0.67/mile) OR actual expenses (gas, insurance, repairs—pick one, not both). Phone/internet (business % only). Supplies (bags, coolers for delivery). Parking/tolls. Car washes. Insurance (rideshare add-on). NOT deductible: commuting to pick up zone, traffic tickets, personal trips. Example: 20,000 business miles × $0.67 = $13,400 deduction. At 25% tax rate, saves $3,350.
Should I use mileage or actual expenses?
Mileage ($0.67/mile) wins 90% of the time—simpler, usually higher deduction. Actual expenses (gas, depreciation, insurance, repairs) only better if: 1) You drive expensive car (depreciation huge), 2) Major repairs ($5k+ engine work), 3) Low gas mileage (truck/SUV). Can't switch methods yearly—once you choose actual for a car, locked in. Most gig drivers: track miles, use standard mileage, save $3k-8k/year easy.
How do I track mileage for taxes?
IRS requires contemporaneous records (track as you go, not reconstruct later). Use: Stride, MileIQ, Everlance (auto-track via GPS, $5-10/month). Log: Date, start location, end location, miles, purpose. Example log: '1/15/25, Home to LAX pickup, 12 mi, Uber'. Don't: estimate end-of-year ('I drove about 15k miles'—IRS denies this). Penalty for no records: lose entire deduction. One audit victim lost $18k mileage deduction because no logs.
Can I deduct my phone bill?
Business % only. Track usage for 1 month: business calls/data vs personal. Example: 60% business, 40% personal. Phone bill $80/month → deduct $48/month ($576/year). Phone purchase: deduct business % immediately or depreciate over 2 years. Red flag: deducting 100% (IRS knows you use it personally). Safe: 50-70% business use. Document with call logs, app usage screenshots.