If you drove for Uber, delivered for DoorDash, or sold crafts on Etsy last year, there's a good chance you owe money this spring.
Not because you did anything wrong — because nobody took taxes out of your paycheck along the way.
No withholding, no automatic deductions, nothing set aside.
Every dollar that hit your account looked like yours.
It wasn't. **Why the number feels so big** Employees split their tax bill with their boss.
You pay 7.65% toward Social Security and Medicare, and your employer quietly pays the same amount on top.
Independent contractors pay both halves — 15.3% — plus regular income tax on top of that.
So a gig worker who cleared $30,000 might owe $4,500 just in self-employment tax before income tax even enters the picture.
Apps like Uber and DoorDash send a 1099-NEC or 1099-K once you cross the reporting threshold, and the IRS gets a copy.
If you made $600 or more with one platform, assume Washington already knows. **The deductions people leave on the table** Here's the part that actually helps.
You can subtract business expenses from your gig income, and most people claim far less than they're allowed to.
The standard mileage rate for 2024 was 67 cents per mile.
Drive 12,000 miles for deliveries and that's over $8,000 in deductions — which can wipe out a big chunk of what you owe.
Phone bills, a portion of your internet, insulated delivery bags, phone mounts, parking, tolls, and even a percentage of rent if you have a dedicated home office space can count.
Health insurance premiums may be deductible too.
One warning: you can't deduct commuting miles from your home to your first pickup.
Only the miles between jobs. **Why January hurts and April hurts more** Most gig workers are supposed to make quarterly estimated payments — April, June, September, and January.
Skip them and you may owe an underpayment penalty on top of your tax bill.
The fix is boring but effective: move 25% to 30% of every payout into a separate savings account the moment it lands.
If that sounds steep, it's less painful than a $5,000 surprise in April.
If you can't pay what you owe, don't ignore it.
The IRS offers installment plans, and ignoring the notice makes everything more expensive. **One free thing worth doing this week** If you made under $84,000 last year, you can file free through IRS Free File.
Several tax software companies also offer free tiers for simple 1099 returns.
And if your gig income was modest, the Earned Income Tax Credit and the Saver's Credit might put money back in your pocket — but only if you claim them.
Set aside time, gather your 1099s, and add up your miles before you file.
The people who get crushed in April are usually the ones who guessed.
Gig work sells freedom, and the tax code charges for it.
Treating that 25% as gone the moment it arrives isn't pessimism — it's the only way the math works in your favor.
Final Thoughts
The platforms won't do it for you, and they never pretended they would.