What expenses can gig workers deduct on taxes in 2026?

Every ordinary-and-necessary business expense: mileage at the 2026 IRS rate ($0.725/mile for January-June, $0.76/mile from July 1) (or actual vehicle expenses), business-use portion of your phone, supplies (insulated bags, hand sanitizer, gloves), platform fees, accounting software, self-employed health insurance premiums (above-the-line on Schedule 1), retirement contributions (SEP-IRA or Solo 401(k)), tolls, parking fees (not tickets), business-use portion of internet, and home office (if you have a dedicated business space).

Can I deduct my cell phone bill as a gig worker?

Yes — but only the business-use percentage. If you use your phone 60% for gig work and 40% personal, deduct 60% of your monthly bill. Document the split with a reasonable estimate based on actual usage (time spent on platform apps, navigation, customer messaging).

Are clothes and gear deductible for gig workers?

Only specific gig-required gear: insulated delivery bags, hand sanitizer, hot/cold packs, slip-resistant work shoes, branded uniforms. Generic clothing (regular shoes, normal jackets, jeans) is NOT deductible even if you only wear it for gig work — the IRS rule is that deductible clothing must be unsuitable for everyday use. Branded delivery gear and specialty equipment count; generic apparel does not.

Can I deduct meals during gig shifts?

Generally no — meals you eat while working as a gig driver are personal expenses, not business expenses. The narrow exception: meals during overnight business travel (you're staying somewhere other than home). Local meals during your normal gig route do NOT qualify, regardless of whether you ate while on a shift.

Are health insurance premiums deductible for gig workers?

Yes — if you bought health insurance through the ACA Marketplace and aren't eligible for a spouse's employer plan, premiums are deductible as an above-the-line adjustment on Schedule 1, line 17. The deduction is capped at your Schedule C net profit. This can reduce AGI by $3,000–$8,000/year for many self-employed gig workers, with downstream benefits to ACA subsidies, student loan IDR payments, and Roth IRA eligibility.

← Back to Mileage & Tax Deductions Guide

What Expenses Can Gig Workers Deduct on Taxes?

Beyond mileage, gig workers can deduct many business expenses. Here is what qualifies and how to document it properly.

Expense Deduction Checklist

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Mileage

76 cents/mile from July 1, 2026 (72.5 cents for January-June) for all business driving

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Phone & Data Plan

Business-use percentage only

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Car Insurance

Business-use portion only

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Car Maintenance & Repairs

Only if using actual expenses method (not standard mileage)

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Health Insurance Premiums

Deductible if self-employed and not eligible for an employer plan (limited to your net profit; see IRS Form 7206)

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Delivery Equipment

Bags, phone mounts, chargers, dash cams

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Parking & Tolls

Business-related only (deductible with either method)

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Tax Preparation Fees

Accountant, software, or filing services

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Personal Groceries

Not deductible even if bought during shift

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Traffic Tickets

Fines and penalties are never deductible

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Commuting to W-2 Job

Regular commute is not a business expense

Documentation Tips

Keep receipts for your business expenses. For recurring expenses like phone bills, calculate your business-use percentage at the start of the year and apply it consistently. Take photos of receipts immediately -- faded paper receipts are a common audit problem.

Track All Your Deductions in One Place

ShiftTracker logs mileage and expenses, making tax time simpler.

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