As a gig worker, you have access to a wide range of tax deductions that can significantly reduce your tax liability. From home office expenses to vehicle mileage, understanding what you can deduct is crucial to keeping more of your hard-earned money.
Home Office Deduction
If you use a portion of your home exclusively for business, you may be eligible for the home office deduction. This can include a percentage of your rent or mortgage interest, utilities, and internet costs.
Vehicle and Mileage
Track every business mile you drive. In 2025, the standard mileage rate is 67 cents per mile. Alternatively, you can deduct actual vehicle expenses including gas, insurance, and depreciation.
Equipment and Software
Computers, phones, cameras, and software used for your business are deductible. If you use them for both personal and business purposes, you can deduct the business-use percentage.
Health Insurance Premiums
Self-employed individuals can deduct 100% of their health insurance premiums for themselves and their families, directly reducing adjusted gross income.
Retirement Contributions
Contributing to a SEP-IRA or Solo 401(k) can reduce your taxable income by up to $66,000 in 2025 while building your retirement nest egg.
