For gig workers, tax season can be overwhelming. Unlike traditional employees who receive a W-2, rideshare and delivery drivers are considered independent contractors, meaning they receive a 1099 and must handle their taxes. The process of tracking income, calculating deductions, and filing correctly for tax savings can feel like a second job—one that comes with serious financial consequences if done incorrectly.
That’s why having an expert on your side can make all the difference. 1-800Accountant, Gridwise’s exclusive tax partner, specializes in helping gig workers navigate tax season and maximize their refunds. With the April 15 tax deadline approaching, now is the time to take action.
Here's what we cover:
Why Gig Worker Taxes Are More Complicated
Unlike employees who have taxes withheld from every paycheck, gig workers are responsible for calculating and paying their own taxes. This means:
- Self-employment taxes – You must pay both the employer and employee portions of Social Security and Medicare taxes.
- Quarterly estimated taxes – To avoid penalties, you may need to make tax payments throughout the year.
- Business deductions – You can lower your taxable income by writing off work-related expenses, but you need accurate records.
Without proper planning, many gig workers find themselves owing more than expected at tax time. Working with a tax professional who understands gig work can help you avoid surprises and keep more of your earnings.
How to Maximize Your Deductions
One of the biggest advantages of being a gig worker is the ability to deduct business expenses. Common deductions include:
- Mileage & Vehicle Expenses – The miles you drive while working can significantly reduce your taxable income.
- Phone & Data Costs – If you use your phone for work, a portion of your bill is deductible.
- Tolls & Parking – Any work-related tolls or parking fees can be written off.
- Supplies & Equipment – Items like phone mounts, delivery bags, and dashcams may be deductible.
- Health Insurance – If you pay for your own health insurance, you may qualify for a deduction.
Tracking these expenses properly is key. Using an app like Gridwise can help you log mileage and earnings, making tax prep easier.
When Should Gig Workers Pay Taxes?
For gig workers, including rideshare and delivery drivers, tax obligations work differently than for traditional employees. Unlike W-2 workers who have taxes withheld from their paychecks, independent contractors are responsible for handling their own taxes. That means understanding key deadlines and payment requirements is essential to avoiding penalties and financial surprises.
Key Tax Deadlines for Gig Workers
The standard tax filing deadline for gig workers is April 15, 2025. However, if more time is needed to file, taxpayers can request a six-month extension, which moves the deadline to October 15, 2025.
It’s important to note that while an extension grants additional time to file, it does not extend the deadline to pay taxes owed. Any unpaid tax liability after April 15 may be subject to interest and penalties.
Quarterly Estimated Tax Payments
The IRS requires self-employed individuals, including gig workers, to pay taxes throughout the year as they earn income. If you expect to owe at least $1,000 in taxes, you are required to make quarterly estimated tax payments.
Here is the quarterly estimated tax payment schedule for tax year 2025:
- First quarter (January 1 – March 31): Due April 15, 2025
- Second quarter (April 1 – May 31): Due June 16, 2025
- Third quarter (June 1 – August 31): Due September 15, 2025
- Fourth quarter (September 1 – December 31): Due January 15, 2026
Payments can be made online through the IRS website or by mail. Missing these deadlines may result in penalties and interest charges.
Avoiding Penalties with Proper Tax Planning
Many gig workers struggle with estimating how much they owe in taxes, leading to underpayments or missed deadlines. Working with a tax professional can help ensure that:
- You accurately calculate your estimated taxes
- You take advantage of all eligible deductions to lower your tax bill
- You file on time to avoid costly penalties
If you’re unsure about how much you owe or when to pay, consider consulting a tax expert who specializes in gig worker taxes. Taking proactive steps now can help you stay compliant and keep more of your hard-earned money.
Schedule your free consultation now.
How 1-800Accountant Makes Filing Easier
Tax mistakes can be costly. Filing incorrectly or missing deductions could mean losing hundreds or even thousands of dollars. 1-800Accountant specializes in helping gig workers stay IRS-compliant while maximizing their tax savings.
With flat fees instead of hourly rates, you’ll know exactly what you’re paying upfront—no surprise costs. Plus, Gridwise users get a free tax consultation to see how much they can save.
Schedule your free consultation now.
Don’t Wait Until the Last Minute
The April 15 tax deadline is fast approaching, and the sooner you prepare, the better. Taking proactive steps now can help you reduce stress, avoid penalties, and maximize your refund.
Next steps:
- Track your income and expenses using Gridwise.
- Gather receipts and records for deductible expenses.
- Schedule your free tax consultation with 1-800Accountant to ensure you’re getting the most out of your return.
