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

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.

See Also

Uber 1099 Guide