Independent contractors managing self-employed taxes should stay proactive about independent contractor deductions and year-round recordkeeping.
State Tax Snapshot for Self-Employed Taxes
- Virginia taxes Uber earnings as personal income, so track every fare and tip you accept.
- Use the Virginia Department of Taxation portal (tax.virginia.gov) to submit quarterly payments; the 760ES voucher keeps your account current.
- Local cities or counties may add occupational taxes—double check requirements in the markets where you drive.
What to Track Each Week
- Log on-trip and deadhead miles separately so you can compare the IRS standard rate against actual expenses.
- Save receipts for car washes, detailing, chargers, water, and snacks that keep ratings high.
- Reconcile Uber payout statements with deposits, including tips, incentives, and adjustments.
Quarterly Checklist
- Estimate federal and state taxes using the 1099Hub calculator; move the cash into a dedicated reserve.
- Submit Virginia estimated payments by the IRS due dates (April, June, September, January) to avoid interest.
- Review maintenance logs and schedule service before peak demand seasons.
Local Resources
- Virginia Department of Taxation – official guidance and online services: tax.virginia.gov
- IRS Small Business & Self-Employed Center – publication 463 for mileage rules.
- 1099Hub Uber driver hub – templates for mileage, receipts, and quarterly reminders.
Show up to each quarter with clean numbers and Virginia regulators will see you as a pro, not a procrastinator.
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.