Independent contractors managing self-employed taxes should stay proactive about independent contractor deductions and year-round recordkeeping.
Why It Matters for Self-Employed Taxes
Grubhub’s weekly deposits can clash with daily expenses. If you cash out early without a plan, fuel and maintenance steal from next week’s paycheck.
Key Earnings & Expense Buckets
- Log bag replacements, catering setups, and drink carriers as direct delivery supplies.
- Deduct car insurance upgrades and commercial riders required by Grubhub in certain cities.
- Record paid parking and tickets to monitor problem zones you should avoid.
Weekly Workflow
- Schedule cash outs only after setting aside tax and fuel money for the next shift.
- Review Delivery History for low paying restaurants and block them during dinner rush.
- Export your Grubhub mileage to cross check against your automated tracker monthly.
Tools & Next Steps
- Money management apps like Qube or YNAB to assign every dollar a job before you spend it.
- A simple restaurant scorecard that ranks wait times, tip averages, and parking issues.
- Dash cameras and safety trackers when operating in late night or downtown zones.
Healthy cash flow is the difference between powering through busy season and burning out mid month.
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.