If you drove for Uber, delivered for DoorDash, freelanced, or did any contract work in Orlando last year, you are a 1099 worker. That means no taxes were withheld from your pay. It also means the IRS expects you to handle everything yourself. The good news is that 1099 workers have access to deductions that W-2 employees do not. The average gig worker misses over $2,000 in deductions every year. Here is what you should be claiming.
What Is the Self-Employment Tax and How Much Is It?
When you work for an employer, they pay half of your Social Security and Medicare taxes. When you work for yourself, you pay both halves. That is 15.3% on top of your regular income tax. It feels harsh. But you can deduct half of that self-employment tax from your gross income. That reduces your taxable income before you even start on business deductions.
What Mileage Deductions Are Available for Rideshare and Delivery Drivers?
The IRS standard mileage rate for 2025 is 70 cents per mile for business driving. If you drove 15,000 miles for Uber or DoorDash this year, that is a $10,500 deduction. Most drivers underreport mileage because they did not track it all year. Apps like MileIQ and Stride track automatically. Even a partial year of records is better than nothing. You can also use actual vehicle expenses instead of the standard rate if that math works out better for you.
Can You Deduct Your Phone Bill?
Yes. If you use your phone for work, the business-use percentage is deductible. For most gig workers, that is 50% to 80% of the monthly bill. Keep 2 to 3 months of bills as documentation. The same rule applies to a tablet, a hotspot, or a data plan you use specifically for gig work.
What About a Home Office Deduction?
If you have a dedicated space in your home used exclusively for business, you can deduct it. The simplified method is $5 per square foot up to 300 square feet. You can also deduct a proportional share of your rent or mortgage interest, utilities, and internet. The space must be used regularly and exclusively for work. A corner of your bedroom does not qualify. A separate room that is only your office does.
What Is the Qualified Business Income Deduction?
Most self-employed workers and 1099 contractors qualify for the QBI deduction. It lets you deduct up to 20% of your qualified business income from your taxable income. If you made $40,000 in gig work, you could deduct $8,000 before any other expenses. Most tax software applies this automatically, but only if your return is filed correctly as self-employment income.
Get Your Taxes Done Right in Orlando
Tax & Crypto Resolutions handles 1099, gig worker, and self-employed tax returns for people across Central Florida. We know the deductions, we know the rules, and we know how to keep more money in your pocket. Visit us at 2200 S Orange Blossom Trail Unit 2, Orlando, FL 32805 or call (407) 412-5645.
We serve individuals and small businesses in Orlando and Indianapolis. Free consultations available in person and virtually.