Tax Deductions for Gig Workers and Creators

Vehicle costs

• Standard mileage rate or actual car expenses, but not both for the same vehicle. Use the mileage deduction calculator.
• Parking and tolls on business trips, in addition to the standard rate.
• Interest on a car loan and similar costs only if you track actual expenses.

Equipment and supplies

• Insulated bags, phone mounts, chargers and dash cams used for the work.
• Cameras, microphones, lighting and computers for creators.
• Software, subscriptions and music or sound licences.
• Packaging, shipping materials and tools for sellers.

Phone and internet

The business-use share of your phone plan and internet. If half of your phone use is for the work, you can generally deduct half. Keep a note of how you estimated the share.

Home office

A space used regularly and exclusively for the business can qualify. The simplified method is $5 per square foot up to 300 square feet, a maximum of $1,500.

Fees and services

• Platform and payment fees, when your income is reported before they were taken out.
• Accounting and tax software.
• Payments to editors, assistants and other contractors.

Deductions that reduce income tax

• Half of your self-employment tax, deducted automatically on the tax return.
• The qualified business income deduction of up to 20% of qualified profit, for many people at typical income levels.
• The self-employed health insurance deduction for premiums you pay for yourself, subject to rules.
• Retirement contributions to a SEP IRA or solo 401(k).
• Qualified tips, up to $25,000 for eligible workers in 2025–2028, which lowers income tax but not self-employment tax.

State rules can differ

Many states start from your federal numbers, so a federal deduction such as mileage usually carries over, but some states add back or limit certain deductions, and a few have their own business taxes. City and county taxes, such as those in parts of Pennsylvania, Ohio, Michigan and New York, are separate from the federal return. See the state tax guide and confirm with your state tax agency.

Records worth keeping

A mileage log, receipts or bank statements for each cost, and a simple spreadsheet of income and expenses by month. Keep them for at least three years after filing.

What you cannot deduct

Personal expenses, your commute, fines and penalties, and costs that were reimbursed to you. If an expense serves both personal and business uses, only the business share counts.

Frequently asked questions

Can I deduct gas and mileage?

Not both for the same vehicle. The standard mileage rate already includes gas, maintenance, insurance and depreciation.

Do I need receipts for everything?

You need records that show the amount, date and business purpose. Receipts are the best evidence, and bank statements help as a backup.

Can I deduct clothing?

Only clothing that is required for the work and not suitable for everyday wear, such as a branded uniform. Ordinary clothes are personal.

What is the qualified business income deduction?

A deduction of up to 20% of qualified business profit for many sole proprietors, with limits at higher incomes. Our calculators include it.

Sources

• IRS: Gig economy tax center
• IRS Publication 463: Travel, gift, and car expenses
• IRS: Self-employment tax (Social Security and Medicare)
• IRS: 2026 tax inflation adjustments (Rev. Proc. 2025-32)

General information, not tax advice. See our disclaimer.

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