Independent contractors managing self-employed taxes should stay proactive about independent contractor deductions and year-round recordkeeping.

💡 Set aside 25% of every gig payout for self-employed taxes so independent contractor deductions cover quarterly payments.

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.

See Also

Uber 1099 Guide