This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any transaction.
Did you start dashing for a couple of extra bucks? Did you start ridesharing full-time because you wanted more control over the hours you work? Whether you’ve been doing gig work for years, or just started doing a few hours on the side, filing taxes can be a stressful and confusing process. As a gig worker you are classified as an independent contractor and are responsible for your own taxes, so maximizing your deductions and filing them correctly is important. We’re here with some tips to help make the process easier.
1. Keep Tabs on Your Total Income
When filing as an independent contractor, it’s important to keep track of all income you receive. This includes not only payments from gig apps, but also income from investments or other sources. Keep a detailed record of all income throughout the year, as this will make filing taxes much easier. If you make more than $600 from any one platform or job, they should send you a 1099 form by January 31st for the prior year. Using Solo, you can automatically track all your income across gig apps in one easy-to-use interface and manually track any other income outside of your connected gig apps so that your income is all in one place when it comes time to file.
2. Track Your Business Expenses to Maximize Your Deductions
One of the advantages of being an independent contractor is that you can deduct your business-related expenses from your gross income come tax time. These deductions for gig workers can include the miles you’re driving for work ($.625 per mile!), work-related equipment like hot bags and phone mounts, plus subscriptions for work-related software like Solo! You can easily track all of your deductible work expenses in the Solo app with our mileage and expense tracker which syncs with our tax projections tool so you know you’re saving as much of your hard-earned money as you can.
3. Set Aside Money For Taxes
It’s easy to get caught up in the hustle and bustle of gig work and forget to set aside money for taxes. Using Solo, you can estimate how much you will owe in taxes at a federal and state level while maximizing tax deductions so there are no surprises come Tax Day.
Not using Solo yet? File with ease for a flat fixed fee—we've partnered with Column Tax so you can file your taxes directly from the Solo app. With all your work information at your fingertips, you can maximize your deductions and keep more of your hard-earned cash. Solo subscribers will be able to file both Federal and State taxes for a flat rate of just $59.99. That’s 25% off our regular rate of $79.99! Learn more here.