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Tax & Accounting for Gig Economy Workers

Rideshare and delivery drivers are self-employed. Mileage is the biggest deduction, and quarterly estimated payments are required.

Katie Gorles
Written by
Katie Gorles
Updated April 22, 2026

Mileage tracking

Standard mileage rate for 2025 is 70 cents per business mile. A driver putting 30,000 miles on the car can deduct $21,000 before any other expense. App-based tracking (MileIQ, Stride) creates the contemporaneous log the IRS requires.

Other deductible expenses

Phone (business-use percentage), dashcam, car washes, parking, tolls, snacks for passengers (where applicable), and platform fees all count.

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Quarterly estimates

Platform income has no withholding. Without quarterly estimated payments, drivers face underpayment penalties plus a large April balance.

Common questions

Actual expenses or standard mileage?
Most rideshare drivers come out ahead with the standard mileage rate. The decision is year-one, we compare both methods at first filing.

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