Frequently Asked Questions
Everything you need to know about gig driver taxes.
Do I really need to pay quarterly taxes?▾
In many cases, yes. As a self-employed gig worker, you may need to pay estimated taxes quarterly if you expect to owe $1,000 or more in tax for the year.
Common quarterly payment due dates:
- April 15 (Jan 1 – Mar 31)
- June 15 (Apr 1 – May 31)
- September 15 (Jun 1 – Aug 31)
- January 15 (Sep 1 – Dec 31)
Missing estimated payments can result in penalties and interest charges.
What’s the difference between standard mileage and actual expenses?▾
Standard Mileage Method ($0.725/mile for 2026):
- Simple: track your business miles
- Includes gas, insurance, maintenance, repairs, and depreciation in one rate
- You may still deduct certain items separately (like tolls and parking) depending on your situation
- Typically must be used in the first year you use a vehicle for business to keep the option open
Actual Expense Method:
- More record-keeping (receipts, logs)
- Deduct business percentage of gas, repairs, insurance, registration, depreciation/lease, etc.
TaxDriverPro uses the standard mileage method for estimates (it’s often best for gig drivers).
Can I deduct my car payment?▾
Standard mileage: you generally cannot deduct the car payment itself, since the mileage rate already accounts for depreciation.
Actual expenses: you may be able to deduct certain portions (for example, the business-use percentage of loan interest, or lease payments), depending on your situation.
What records do I need to keep?▾
Common records include:
- Mileage log (dates, miles, destination/purpose)
- Income records (1099s, platform summaries, deposits)
- Expense receipts (phone bills, tolls, parking, supplies)
Keep records for at least 3 years in many cases (longer in some situations).
Is this calculator IRS-approved?▾
The IRS does not “approve” tax calculators. TaxDriverPro uses published tax rates/brackets and standard mileage rates to provide estimates.
Important: tax laws change and individual situations vary. Use this as a planning tool, not as a final filing answer.
What if I drive for multiple platforms?▾
Add up your total income from all platforms (Uber, Lyft, DoorDash, Instacart, etc.) and enter the combined number. Track all business miles regardless of platform.
What is self-employment tax and why is it so high?▾
Self-employment tax is the Social Security and Medicare tax that self-employed people pay. It’s generally 15.3% of net earnings (after deductions).
- 12.4% Social Security (up to the wage base limit)
- 2.9% Medicare (no cap)
When you’re an employee, your employer pays half. As an independent contractor, you pay both halves.
What is Proposition 22 and how does it affect my taxes?▾
Proposition 22 is a California law that sets certain pay and benefit rules for app-based drivers, while keeping drivers classified as independent contractors.
Some Prop 22 payments (like healthcare stipends) may be taxable. You’re still responsible for self-employment tax.