Independent contractors managing self-employed taxes should stay proactive about independent contractor deductions and year-round recordkeeping.
Why It Matters for Self-Employed Taxes
Moving gigs beat up your truck and require extra hands. Without detailed tracking you could lose money on every large Dolly job.
Key Earnings & Expense Buckets
- Deduct moving blankets, ratchet straps, furniture dollies, and ramp maintenance.
- Track fuel separately for city moves versus long distance hauls to understand profitability.
- Record helper payouts with dates and contact info for year end 1099-NEC filings.
Weekly Workflow
- Inspect equipment before each job and note wear so replacements are budgeted.
- Collect deposits or trip minimums upfront to cover travel if a customer cancels.
- Photograph load in and load out stages to defend against damage claims.
Tools & Next Steps
- Job costing worksheets that calculate profit per Dolly request.
- Expense apps like Expensify to store fuel and supply receipts in one place.
- Contract templates outlining scope, liability, and payment terms for off platform clients.
Treat every move like a mini logistics company and Dolly will reward you with repeat customers and five star reviews.
How do I track mileage for gig work in 2025?
Use IRS-approved mileage logs or apps like Everlance to document date, distance, and purpose for every self-employed trip.
Can I deduct equipment or vehicle lease payments?
Yes, deduct the portion tied to independent contractor work; keep receipts and lease statements for 1099 tax audits.
When should I pay quarterly estimated taxes?
Send payments by April, June, September, and January to cover self-employed taxes and avoid IRS penalties.
What records should independent contractors keep?
Maintain income statements, mileage reports, receipts, and bank deposits to support deductions and 1099 filings.
How can I reduce surprise tax bills as a freelancer?
Estimate your independent contractor deductions monthly, set aside 25-30% of income, and automate transfers to a tax savings account.