Independent contractors managing self-employed taxes should stay proactive about independent contractor deductions and year-round recordkeeping.
Why It Matters for Self-Employed Taxes
Instawork sends you into different job sites every week. Without diligent tracking, you lose sight of drive time, tips, and overtime rules.
Key Earnings & Expense Buckets
- Deduct uniforms, nonslip shoes, and PPE required for specific venues.
- Log mileage to warehouses, hotels, and events not reimbursed by the client.
- Track meal costs when shifts exceed the IRS guidelines for business meals.
Weekly Workflow
- Export weekly shift history and note any tips paid in cash so they make it into your ledger.
- Confirm each gig’s pay rate and overtime terms before clocking in.
- Block time every Monday to invoice or reconcile any direct client engagements booked off platform.
Tools & Next Steps
- Spreadsheet templates separating hospitality, warehouse, and event earnings.
- Time tracking apps that let you tag commute versus on site hours.
- Digital filing for facility safety briefings and proof of training certificates.
Treat Instawork like a staffing agency you own; when records are tight you qualify for better shifts and faster approvals.
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.