Gig driver tax guide
If you drive for an app as an independent contractor, no one is withholding tax for you. This guide covers the forms you may get, the deductions that matter most, and the records that back them up.
Published by Cadus Labs LLC · Last updated November 4, 2026 · How we write these guides
Based on the IRS Gig Economy Tax Center, IRS Form 1099 guidance for 2026, IRS Publication 463, and the 2026 IRS mileage rates.
The IRS says you must report income from gig work even if it's part-time, temporary, or side work, even if it isn't reported on a Form 1099 or W-2, and even if it's paid in cash, property, goods, or virtual currency.
That means your own income records matter. A form you do or don't receive doesn't change what you have to report.
Any form you receive should reach you by January 31.
| Form | What it reports | When it's required |
|---|---|---|
| 1099-NEC | Nonemployee compensation paid to you | Generally $2,000 or more for payments made in 2026, up from $600 for earlier years |
| 1099-K | Payments through a payment app or online marketplace | Over $20,000 in more than 200 transactions, though a platform may send one for less |
| 1099-MISC | Other kinds of income | Depends on the type of payment |
| W-2 | Wages, if you work as an employee | Your employer withholds tax from your pay |
As an independent contractor you generally file Form 1040 with two schedules. Schedule C reports your income and expenses and shows your profit. Schedule SE figures self-employment tax on that profit.
Not sure whether you're an employee or a contractor? Ask the company you work with, or check the IRS worker status guidance.
You choose between the standard mileage rate and actual vehicle costs. With the standard rate, you multiply business miles by the IRS rate. You can't also deduct gas, oil, maintenance and repairs, insurance, registration, lease payments, or depreciation for that year.
The IRS business standard mileage rates are 72.5 cents per mile for January 1–June 30, 2026, and 76 cents per mile for July 1–December 31, 2026. A driver with 10,000 business miles in each half of 2026 would have a mileage deduction of $14,850.
To use the standard rate on a car you own, you must choose it in the first year the car is available for business. On a leased car, you must use it for the whole lease.
Business parking and tolls are deductible on top of the standard rate. Commuting isn't deductible, however far you drive. Whether the drive from home to your first pickup counts depends on your facts, so ask a tax professional if it adds up to a lot of miles.
Business costs generally need to be ordinary and necessary for your work. A few common examples:
| Expense | How it's usually handled |
|---|---|
| Parking and tolls | Deductible when business-related, on top of the standard mileage rate |
| Phone | Deduct the business share of the cost, and keep a record of how you split it |
| Insulated bags, mounts, chargers | Business supplies when you buy them for the work |
| Car washes, tires, oil changes | Part of actual vehicle costs, so not separate if you use the standard mileage rate |
| Car loan interest | If you're self-employed, you can deduct the business share even with the standard mileage rate |
| Traffic tickets | Not deductible |
Tips are income, but there is also a new deduction. From 2025 through 2028, employees and self-employed people may deduct qualified tips earned in occupations the IRS lists as customarily receiving tips. Qualified tips are voluntary cash or charged tips from customers, or tips received through tip sharing.
The deduction is capped at $25,000 a year, and for self-employed people it can't exceed net income from the business where the tips were earned. It phases out above $150,000 of modified adjusted gross income ($300,000 for joint filers). For 2026, qualified tips should appear in box 1b of Form 1099-NEC or box 1c of Form 1099-K, so check the IRS occupation list and compare your forms with your own records.
The IRS says independent contractors may have to pay quarterly estimated taxes, and you can avoid a penalty by paying enough on time. A single filer with $60,000 of net profit and no other income would owe about $12,037 in 2026 federal tax, or about 20% of profit.
If you drive on the side and also have a W-2 job, you may be able to cover the tax by having your employer withhold more instead.
Publication 463 is direct about this: you can't deduct amounts you approximate or estimate. You generally need a written record, and a record kept on a computer counts.
Keep a mileage log with the date, destination, business purpose, and miles for each trip. Keep the earnings statements from each app, and receipts for what you buy. Cadus keeps mileage, receipts, income, and expenses together in one app, so they're ready when you file or talk to an accountant.
Calculator
DoorDash doesn't take taxes out of your pay. Enter your earnings, miles, and costs to estimate what you'll owe, then see what DoorDash reports and which write-offs count.
Calculator
Your Uber forms show more than what reached your bank account. Enter your gross earnings, fees, and miles to estimate what you'll owe as an Uber driver or Uber Eats courier.
Calculator
Enter your 1099 income and business expenses to estimate self-employment tax, federal income tax, and what to set aside each quarter. No sign-up, and nothing you type is saved.
Calculator
Estimate the standard mileage deduction for U.S. business driving, then use Cadus to keep mileage, expenses, receipts, invoices, and tax reports organized.
Template
Copy this mileage log to organize trip dates, destinations, business purpose, odometer readings, and miles before estimating deductions.
Template
Copy this table to start organizing business purchases, receipt proof, categories, and business purpose before moving records into Cadus.
Mileage deduction education
Learn the two IRS business mileage rates for 2026, the July 1 change, and how self-employed workers can keep clear trip and vehicle records.
Self-employment tax guide
The self-employment tax rate is 15.3%. See who pays, how the 2026 wage base works, the deduction for half the tax, and a worked example.
Estimated tax guide
2026 estimated tax due dates, who has to pay, how to avoid the penalty, and a worked example for a self-employed worker earning $60,000.
Yes. The IRS says you must report income from gig work even if it isn't reported on an information return such as a Form 1099-K or 1099-NEC.
No. If you use the standard mileage rate for a year, you can't also deduct actual costs such as gas, maintenance, or insurance for that year. Business parking and tolls can be deducted on top.
The IRS business standard mileage rates are 72.5 cents per mile for January 1–June 30, 2026, and 76 cents per mile for July 1–December 31, 2026.
Tips are income, but from 2025 through 2028 you may be able to deduct qualified tips, up to $25,000 a year, if your occupation is on the IRS list. For self-employed people, the deduction can't exceed net income from the business where the tips were earned.
It depends on your profit, filing status, and state. In our single-filer example, federal tax alone comes to about 20% of $60,000 in net profit. Note that this is a share of profit after expenses, not of your total app payouts.