Gig Economy Tax Guide: Uber, DoorDash, Etsy, and More

Gig Work and Taxes

If you earn money through platforms like Uber, Lyft, DoorDash, Instacart, Fiverr, Etsy, or Airbnb, you are considered self-employed. This means you owe income tax and self-employment tax on your net earnings.

Reporting Requirements

All gig income must be reported regardless of whether you receive a 1099. Starting in 2025, platforms issue 1099-K for transactions exceeding $2,500.

Report gig income on Schedule C. Your net profit (income minus business expenses) is subject to:

Federal income tax at your marginal rate

Self-employment tax of 15.3%

State income tax (if applicable)

Platform-Specific Deductions

Rideshare Drivers (Uber, Lyft)

Mileage: 70 cents per business mile (largest deduction for most drivers)

Phone and data plan (business percentage)

Phone mount and charger

Water and snacks for passengers

Car washes and detailing

Roadside assistance membership

Delivery Drivers (DoorDash, Instacart)

Mileage for all delivery miles

Insulated delivery bags

Phone expenses

Parking fees during deliveries

Online Sellers (Etsy, eBay, Poshmark)

Cost of goods sold (materials, inventory)

Shipping supplies and postage

Platform fees and payment processing fees

Photography equipment for listings

Home office for packing and storage space

Short-Term Rental Hosts (Airbnb)

Cleaning supplies and services

Furnishings and linens

Platform service fees

Depreciation of the property

Insurance

Utilities and maintenance

Estimated Tax Payments

As a gig worker, you should make quarterly estimated payments if you expect to owe more than $1,000 in taxes. Calculate your estimated payment based on your net income minus deductions.

Track Everything

Use Taxation.ai to connect your gig platform accounts and automatically import earnings and track deductible expenses. The AI categorizes expenses and calculates your quarterly tax obligation in real time.