Independent contractors managing self-employed taxes should stay proactive about independent contractor deductions and year-round recordkeeping.
Why It Matters for Self-Employed Taxes
Delivery income has more moving pieces than rideshare. Instant cash outs, cash tips, and reimbursements can disappear unless you reconcile them weekly, and the 1099-K rarely matches your actual deposits without good records.
Key Earnings & Expense Buckets
- Record cash tips and instant payouts in a spreadsheet so you can verify the platform totals at year end.
- Deduct insulated bags, hot boxes, and spill proof drink carriers as delivery specific gear.
- Capture mileage in delivery zones even when you are repositioning or waiting on stacked orders.
Weekly Workflow
- Download the Payouts CSV every Monday and add a column labeling tips, boosts, referrals, and adjustments.
- Use tags like breakfast, lunch, and late night to evaluate which zones deserve your prime hours.
- Transfer 25 percent of weekly net income into a high yield tax savings account before cashing out.
Tools & Next Steps
- A Notion database or Airtable base that mirrors Uber Eats payout categories for fast filtering.
- Mileage tracking with TripLog so delivery detours and parking loops appear in your year end total.
- A budget template that separates tip cash from mileage reimbursements to avoid double counting.
When your payout ledger mirrors the app, reconciling Uber’s 1099 statements becomes a five minute job instead of a weekend project.
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.