Top Tax Deductions for Gig Workers You Shouldn’t Miss

Many gig workers miss valuable deductions that could significantly lower their tax bills. Here’s how to maximize your savings by claiming all eligible expenses.

Common Tax Deductions

Vehicle Expenses

• Choose between the IRS mileage rate ($0.67 per mile in 2023) or actual costs like gas, repairs, and insurance.
  

Home Office Deduction

• If you use a portion of your home exclusively for work, you can deduct related expenses like rent or utilities.
  

Equipment and Supplies

• Deduct laptops, tools, or software subscriptions used for your gig.
  

Marketing and Advertising

• Costs for business cards, websites, or online ads are fully deductible.
  

Example: John, a freelance writer, spends $1,200 annually on software subscriptions and $2,500 on a dedicated home office. These deductions lower his taxable income by $3,700, saving him nearly $1,000 in taxes.

Documentation Tips

• Keep all receipts and invoices.

• Use apps like QuickBooks or Expensify to track expenses in real-time.