What happens if your 1099 from Doordash is wrong? What do you do if there's an issue with your forms from Uber, Grubhub, Instacart, Lyft and others? We discuss what contractors should do if there's an error in the amount gig companies report to the IRS.
Business Expense Tax Write-offs for Independent Contractors
These articles examine how tax write-offs work for gig workers, especially for independent contractors in delivery and rideshare.
We examine why business expenses for independent contractors are not the same as itemized tax deductions, and why you can claim the standard deductions AND take your business and mileage expense deductions.
Beyond the business expenses claimed on Schedule C, independent contractors may be able to claim four special tax deductions for self-employed individuals.
Writing off Miles or Car Expenses
The IRS allows you to write off either the standard mileage allowance (a flat rate per mile driven for business) or the actual cost of driving for business. This is often by far the largest tax write-off for independent contractors in the delivery and rideshare spaces. The following articles look at different aspects of writing off car expenses for self-employed gig workers.
Independent contractors can only claim expenses for the business miles driven. We look at how to know what miles you can track and claim, either for the standard mileage allowance or to determine the business percentage of miles driven for the actual expense method.
One option for claiming car expenses is to calculate the actual cost of driving and claim the business percentage of that cost. We examine how business percentage works and what items to consider when calculating the actual expense of driving.
There are three car-related expenses that gig workers may not realize they can claim even when taking the standard mileage deduction: Business related parking/tolls, the business percentage of property taxes on your vehicle, and the business percentage of interest on your car loan. We look at what the IRS says about these three items and how it works on your taxes.
The IRS requires you to have documentation to back up your mileage or car expense claim. This requires tracking what miles were driven for business. But what if you didn't know you could claim those expenses or forgot to track? We look at what independent contractors can do to document untracked miles in an IRS-compliant manner.
Some wonder if you can write off the purchase of a new or used car when it's used for their business. We examine whether or not you can write off your car payment and how it works for delivery and rideshare contractors.
California's Proposition 22 requires delivery and rideshare companies to pay a minimum based on time and miles. We examine how that works, whether that's a reimbursement or if California app-based workers can still write off their miles.
Questions about Specific Tax Write-Offs for Independent Contractors
There are several specific write-offs that are worth discussion on their own. The following articles look in detail at those potential tax deductions for independent contractors.
One of the biggest debates for independent contractors is whether you can claim meals that are eaten while working. We examine how the meal deduction works for gig workers and what the IRS says about what you can and cannot claim.
We examine how the home office deduction works, and how to determine whether gig workers in rideshare and delivery can claim that deduction.
Tax Rates, Forms and Filing Taxes for Independent Contractors.
Once you've figured out the expenses, income, and profit for your business, it's time to file the taxes. We look at the taxes, the tax forms, and how filing taxes work for rideshare and delivery contractors.
Schedule C is the main form that is different for independent contractors than for most other tax filers. We break down what the form is, and how delivery and rideshare contractors would fill out the form.
Many independent contractors get confused by the term "quarterly taxes." We explain that there is not a separate quarterly tax, but instead that's a term often used for estimated payments. We look at when someone would need to make quarterly payments and how it works.
We examine what independent contractors need to do at the start of the year, and how to determine if they need to make an estimated payment for the fourth quarter, due on January 15, in order to avoid additional costs when they file taxes.
Ron Walter made the move from business manager at a non-profit to full time gig economy delivery in 2018 to take advantage of the flexibility of self-employment. He applied his thirty years experience managing and owning small businesses to treat his independent contractor role as the business it is.
Realizing his experience could help other drivers, he founded EntreCourier.com to encourage delivery drivers to be the boss of their own gig economy business.
Ron has been quoted in several national outlets including Business Insider, the New York Times, CNN and Market Watch.
You can read more about Ron's story,, background, and why he believes making the switch from a career as a business manager to delivering as an independent contractor was the best decision he could have made.