If you earn income from “gig” work—like driving for a rideshare app, delivering food, or freelance consulting—you are considered self-employed. You must report this income if your net earnings are $400 or more .
How to Report Income
- Forms You May Receive:
- Form 1099-NEC: You should receive this if you were paid $600 or more by a business for services
- Form 1099-K: You may receive this if you accepted payments via cards or third-party networks (like Venmo or PayPal) totaling over a certain threshold (typically $600, though transition rules apply).
- Cash Income: You must report all income earned, even if you do not receive a form (e.g., cash tips or small jobs under $600).
- Schedule C: You report your business income and expenses on Schedule C (Form 1040).
Deducting Business Expenses
You can lower your tax bill by deducting “ordinary and necessary” business costs .
- Car & Truck Expenses: You can deduct costs for the business use of your vehicle. The simplest method is the Standard Mileage Rate, which is 70 cents per mile for the 2025 tax year.
- Tip: Commuting miles (driving from home to your first job) are not deductible.
- Other Common Expenses: Advertising, supplies, and platforms fees are generally deductible.
Official IRS Resource:Gig Economy Tax Center
