Independent contractors managing self-employed taxes should stay proactive about independent contractor deductions and year-round recordkeeping.
Why It Matters for Self-Employed Taxes
Shipt shoppers often float customer funds for substitutions and same day replacements. Without clear records you could eat the cost or miss reimbursements entirely.
Key Earnings & Expense Buckets
- Deduct printers, label makers, and storage bins used to stage Shipt orders before delivery.
- Track cooler bags, thermometers, and specialty containers for perishables.
- Include membership fees or Costco/Sam’s Club dues if you use them primarily for client orders.
Weekly Workflow
- Photograph receipts before submitting in the app so you have proof if the customer disputes charges.
- Balance your card or account daily to confirm Shipt reimbursements match what you fronted.
- Cluster orders by store brand to minimize aisle hopping and unplanned mileage.
Tools & Next Steps
- A shared spreadsheet with tabs for reimbursements, tips, and cancellations.
- Bank accounts with virtual card numbers to protect your primary debit card on replacement orders.
- Mileage trackers that support short stop routes like Everlance’s delivery mode.
Well organized receipts and mileage protect your profit when customer adjustments drag on for weeks.
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.