Calculate quarterly taxes with platform-specific deductions included
Enter your gig economy income and expenses for accurate tax calculations
Total income before expenses
Track all business-related driving
Business portion deductible
If not using mileage method
As a gig worker, you're essentially running your own business. This means more tax complexity but also more opportunities to reduce your tax burden through legitimate business deductions that other calculators often miss.
Unlike traditional employees, gig workers pay both the employee AND employer portions of Social Security and Medicare taxes. This adds up to 15.3% on top of your regular income tax. Most gig workers are shocked by this additional tax burden.
For 2024, the IRS allows a $0.67 per mile deduction for business use of your vehicle. For most gig workers, this is your largest deduction. Track EVERY business mile, including trips to the gas station, car wash, and maintenance appointments.
If you expect to owe $1,000 or more in taxes, you must make quarterly estimated payments. The penalty for not paying can be significant - typically 0.5% per month of unpaid taxes. Use our calculator to determine your quarterly payment amount.
Most gig workers operate as sole proprietors, but if you're earning over $50,000 annually, consider forming an LLC or S-Corp. This can provide liability protection and potential tax savings, especially on self-employment taxes for S-Corp elections.
As December approaches, consider these moves: accelerate business expenses into the current year, delay income to next year if possible, and make equipment purchases before year-end to qualify for bonus depreciation or Section 179 deductions.
A: If you expect to owe $1,000 or more in taxes for the year, you're required to make quarterly estimated payments. Most gig workers earning over $5,000 annually fall into this category.
A: Yes, but only the business portion. If you use your phone 50% for business, you can deduct 50% of your phone bill. Keep detailed records of business vs. personal use.
A: For most gig workers, the standard mileage deduction ($0.67/mile for 2024) is more beneficial and much simpler to track. You can't switch between methods for the same vehicle.
A: Keep all 1099s from platforms, detailed mileage logs, receipts for business expenses, and bank statements. The IRS can audit up to 3 years back, so maintain records accordingly.
A: Generally no, unless you're traveling away from home overnight for business. Meals during regular gig work in your home area are not deductible.
A: You may owe penalties and interest on the underpaid amount. The penalty is typically 0.5% per month, which can add up quickly. It's better to pay estimates even if they're not perfect.