Gig Worker Tax Deductions: 12 Write-Offs Servers and Drivers Miss Every Year

A shift can look profitable in your app and feel a lot smaller after tip-outs, gas, and other costs. Tracking those costs can help you understand what you actually earned, and may help you claim business expenses you qualify for.

One important distinction: not every server or driver is self-employed. If you’re a W-2 employee, you generally can’t claim ordinary unreimbursed job expenses on Schedule C just because you bought something for work. The deductions below are mainly for independent contractors and sole proprietors, and each has rules.

Here are 12 expenses and records worth checking.

1. Platform commissions and service fees

Delivery and rideshare platforms may charge commissions, service fees, or other business-related fees. Those costs may be deductible when they’re connected to your work.

Check your annual platform statements. If the platform reports gross payments but deposits a smaller amount after fees, make sure you report and account for each figure correctly. Don’t deduct a fee twice if the amount you report is already net of that fee.

The IRS Schedule C instructions explain how business income and expenses are reported.

2. Tip-outs or payments to other workers

Tip-outs matter when you’re figuring out what you took home, but they aren’t automatically a tax write-off.

If you’re a W-2 server, keep records of tip-sharing and follow your employer’s reporting process. A tip-out doesn’t become a Schedule C expense just because you paid it in cash. If you’re self-employed and pay someone to do work for your business, that payment may qualify as a business expense, but it needs to be a real, documented business payment.

Don’t deduct money you never received or count the same tip-out twice.

3. Business mileage

If you use your car for business, you may be able to use the standard mileage method. For 2026 the rate is 72.5 cents per business mile from January 1 through June 30, and 76 cents per mile from July 1 through December 31. Split your miles by date and apply the right rate to each half of the year. Check the IRS standard mileage rates and keep a log of your business miles.

Record the date, destination or business purpose, and miles driven. A rideshare or delivery app’s trip history can help, but keep a mileage record you can review and save.

Ordinary commuting is generally personal, not business mileage. See the IRS guidance on business use of a car.

4. Vehicle expenses under the actual-expense method

Instead of the standard mileage rate, you may be able to deduct the business-use share of actual vehicle costs, such as gas, repairs, insurance, registration, and depreciation.

This is an alternative to standard mileage for many drivers, not an add-on. The method you choose can affect what you can claim later, and depreciation rules can be complicated. Compare the methods using your records or ask a tax professional before deciding.

5. Business parking and tolls

Business parking fees and tolls may be deductible even if you use the standard mileage method. Save receipts or keep a log that shows when and why you paid them.

A parking ticket is different. Don’t treat a fine or penalty as an ordinary parking expense.

6. Car washes

A car wash may qualify as a business vehicle expense when it’s connected to your work. But how you claim it depends on your vehicle method.

If you use actual expenses, you may be able to include the business-use share of cleaning costs. If you use standard mileage, don’t add a separate car-wash deduction for the same vehicle. Keep receipts and use a reasonable business-use percentage.

7. The work-related share of your phone bill

Your phone plan, data, or a second work phone may be deductible to the extent you use it for business. A phone used for both work and personal life generally isn’t 100% deductible.

Choose a reasonable way to work out the business share, such as documented work use, and keep your bills and notes. The same rule applies to related services: deduct the business portion, not the personal portion.

8. Hot bags and delivery gear

Insulated bags, drink carriers, phone mounts, and other delivery gear may qualify when they’re ordinary and necessary for your work and used for business.

Save the receipt and note what the item is for. Lower-cost supplies may be treated differently from expensive equipment that lasts several years; some longer-lived purchases may need to be depreciated rather than deducted all at once.

9. Small supplies and work tools

Keep track of modest work-related items you buy to do your job: order pads for a business, cleaning or safety supplies, or other consumables. Whether an item qualifies depends on its business purpose and use.

Clothing needs extra care. A uniform that can’t reasonably be worn as ordinary clothing may qualify. Everyday clothes usually don’t qualify just because you wear them at work. Non-slip shoes aren’t automatically deductible; ordinary shoes that could be worn outside work are generally personal. The IRS discusses clothing expenses in Publication 529.

10. Payment processing and business bank fees

If you accept payments directly, fees charged by a payment processor for business transactions may qualify as an expense. Business-account service charges may also qualify.

Keep statements that show the fees and separate business charges from personal banking costs. If a platform has already netted out a processing fee, make sure you don’t claim it again.

11. Business insurance, licenses, and permits

A policy or endorsement required for your independent work may qualify for the business-use share of its cost. Business licenses and permits may qualify too.

Keep proof of payment and confirm that the cost is tied to your work. Personal auto insurance or other personal coverage doesn’t become a business expense just because you also work as a driver.

12. A qualifying home office

If you’re self-employed, part of your home may qualify as a home-office deduction if you meet the IRS rules, which generally include regular and exclusive business use. A kitchen table where you sometimes check your app usually won’t meet that test.

The details matter, so check IRS Publication 587 or ask a tax professional before claiming this expense.

Keep the records that support your deductions

A deduction is easier to review when you can show what you paid, why it was for work, and how you calculated any business-use share. Save:

• Platform statements and payout records
• Receipts for gear, supplies, fees, and vehicle costs
• A mileage log and vehicle-use notes
• Phone bills and your method for splitting business and personal use
• Tip-out or contractor-payment records

The IRS says gig income must be reported even if you don’t receive an information form. Its overview of gig economy and tip income is a useful starting point.

Night Shift can help you log shifts, tips, tip-outs, and work costs so you can see what you actually took home. It doesn’t decide whether an expense qualifies or file your return. Read our guide to tracking tips as a server or setting aside taxes as a delivery or rideshare driver.

A note on tax advice: This article is general information, not tax advice. Rules and eligibility depend on your work arrangement, records, and tax situation. Ask a qualified tax professional how the rules apply to you.