If you drive for Uber, freelance on Upwork, deliver for DoorDash, or run any kind of independent business — you're probably paying more taxes than you need to.
The IRS doesn't send you a list of deductions you missed. That's your job. And most gig workers don't know what they can write off.
Here are 10 deductions that could save you thousands.
1. Home Office Deduction
If you use a dedicated space in your home for business — even a corner of a room — you can deduct it. The simplified method gives you $5 per square foot, up to 300 sq ft ($1,500). The regular method lets you deduct the actual percentage of your rent, utilities, and insurance that your office occupies.
Potential savings: $500–$3,000/year
2. Vehicle Mileage
This is the big one for rideshare and delivery drivers. The 2025 IRS standard mileage rate is $0.70 per mile. If you drive 20,000 business miles, that's a $14,000 deduction. Track every mile with an app like Everlance or MileIQ.
Potential savings: $2,000–$10,000+/year
3. Self-Employed Health Insurance
If you pay your own health insurance premiums, you can deduct 100% of the cost — for yourself, your spouse, and your dependents. This is an "above the line" deduction, meaning you get it even if you don't itemize.
Potential savings: $3,000–$12,000/year
4. Phone and Internet
The percentage of your phone and internet bill used for business is deductible. If you use your phone 60% for gig work (navigation, customer communication, app usage), you can deduct 60% of your monthly bill.
Potential savings: $600–$1,500/year
5. Equipment and Supplies
Laptop, phone mount, insulated delivery bags, dash cam, portable charger — if you bought it for work, it's deductible. Items under $2,500 can be expensed immediately under the de minimis safe harbor rule.
Potential savings: $200–$2,000/year
6. Professional Development
Online courses, books, certifications, and conferences related to your work are deductible. Learning a new skill to grow your freelance business? Write it off.
Potential savings: $200–$1,500/year
7. Software and Subscriptions
Accounting software, project management tools, cloud storage, design tools, scheduling apps — any software subscription you use for business is a valid deduction.
Potential savings: $200–$1,000/year
8. Retirement Contributions (SEP IRA / Solo 401k)
This is the most powerful tax tool for self-employed workers. A SEP IRA lets you contribute up to 25% of net self-employment income (max $69,000 in 2025). A Solo 401(k) offers similar limits with a Roth option. Every dollar contributed reduces your taxable income dollar-for-dollar.
Potential savings: $1,000–$15,000+/year
9. Estimated Tax Penalty Avoidance
Not a deduction, but a savings opportunity. The IRS charges penalties if you don't pay quarterly estimated taxes. Setting up proper quarterly payments based on your projected income avoids the 8% penalty rate.
10. Half of Self-Employment Tax
You pay both the employer and employee portions of Social Security and Medicare (15.3% combined). But the "employer half" (7.65%) is deductible on your 1040. This happens automatically when you file correctly, but many DIY filers miss it.
Potential savings: $1,000–$5,000/year
Not sure which deductions apply to you?
Use our free calculator to estimate your potential tax savings, then book a consultation to make sure you're not leaving money on the table.