Yes! As a self-employed gig worker, you're required to pay estimated taxes quarterly if you expect to owe $1,000 or more in taxes for the year. This requirement applies to both federal taxes (IRS) and California state taxes (FTB).

Quarterly payment due dates are:

• April 15 (for income earned January 1–March 31)
• June 15 (for income earned April 1–May 31)
• September 15 (for income earned June 1–August 31)
• January 15 of the following year (for income earned September 1–December 31)

Missing quarterly payments can result in penalties and interest charges from both the IRS and California FTB. The penalty is typically calculated based on how much you underpaid and for how long.

Standard Mileage Method ($0.725/mile for 2026):

• Simpler to use - just track your business miles
• No need to keep detailed receipts for every expense
• Includes depreciation, gas, insurance, maintenance, and repairs in one rate
• You can still deduct parking fees, tolls, and interest on car loans separately
• Must be used in the first year you use your car for business

Actual Expense Method:

• Requires detailed record-keeping of all vehicle-related expenses
• You can deduct: gas, oil, repairs, insurance, registration, depreciation, lease payments, parking, tolls
• You must calculate the business-use percentage of your vehicle
• Can be more beneficial if you have high actual expenses and low mileage
• Requires keeping all receipts and detailed logs

Important: You cannot switch between methods if you've already used the standard mileage method for a vehicle. Our calculator uses the standard mileage method, which is typically more beneficial for most gig drivers.

If you use the Standard Mileage Method: No, you cannot deduct your car payment. The standard mileage rate ($0.725/mile) already includes depreciation, which accounts for the cost of your vehicle.

If you use the Actual Expense Method: You can deduct certain portions of your car payment:

• Car Loan Interest: You can deduct the business-use percentage of interest paid on your car loan (not the principal)
• Lease Payments: If you lease your vehicle, you can deduct the business-use percentage of lease payments
• Depreciation: If you own the vehicle, you can deduct depreciation based on the business-use percentage

Remember: You must calculate your business-use percentage by dividing business miles by total miles driven. For example, if you drive 15,000 business miles out of 20,000 total miles, your business-use percentage is 75%.

The IRS requires you to keep detailed records to support your tax deductions. Here's what you need:

Mileage Records:

• Date of each trip
• Starting and ending odometer readings (or total miles)
• Destination and business purpose
• Use a mileage tracking app or keep a written log

Income Records:

• All 1099 forms received from platforms (Uber, Lyft, DoorDash, etc.)
• Bank statements showing deposits
• Payment summaries from each platform
• Any cash payments received

Expense Receipts:

• Gas receipts (if using actual expense method)
• Car maintenance and repair receipts
• Insurance statements
• Phone bills (to calculate business percentage)
• Tolls and parking receipts
• Car wash receipts
• Any other business-related expenses

Retention Period: Keep all records for at least 3 years from the date you file your tax return, or 2 years from the date you paid the tax, whichever is later. The IRS can audit returns up to 3 years after filing, and up to 6 years if you underreported income by more than 25%.

While the IRS doesn't "approve" tax calculators, our tool uses official IRS tax tables, California FTB rates, and current tax code for 2026. The calculations are based on:

• Official IRS tax brackets and rates for 2026
• State tax brackets for all 15 supported states
• Current self-employment tax rates (15.3%)
• Official standard mileage rate ($0.725/mile for 2026)
• Standard deduction amounts for 2026

Important Disclaimer: This calculator provides estimates for informational purposes only. Tax laws are complex and change frequently. Individual circumstances vary, and this tool cannot account for all possible deductions, credits, or special situations.

We recommend consulting with a qualified tax professional or certified public accountant (CPA) for personalized tax advice, especially if you have complex financial situations, multiple income sources, or questions about specific deductions.

Perfect! Many gig drivers work for multiple platforms to maximize their earnings. Here's how to handle it:

Combining Income:

• Add up your total gross income from all platforms (Uber, Lyft, DoorDash, Instacart, etc.)
• Enter the combined total in the "Gross Earnings" field
• You'll receive one 1099-NEC or 1099-K from each platform, but report the total on your tax return

Tracking Mileage:

• Track all business miles regardless of which platform you were driving for
• You don't need to separate miles by platform - all business miles count
• Use a mileage tracking app that automatically records all trips

Deductions:

• All business expenses are deductible regardless of which platform you were working for
• Phone expenses, car maintenance, insurance - all count toward your total deductions
• You don't need to allocate expenses by platform

Pro Tip: Keep separate records of income from each platform for your own tracking, but combine them for tax purposes. This makes it easier to see which platforms are most profitable and helps if you're ever audited.

Self-employment tax is the Social Security and Medicare tax that self-employed individuals must pay. It's 15.3% of your net earnings (after deductions).

Breakdown of the 15.3%:

• Social Security Tax: 12.4% on the first $184,500 of net earnings (2026 wage base)
• Medicare Tax: 2.9% on all net earnings (no cap)
• Additional Medicare Tax: 0.9% on net earnings over $200,000 (single) or $250,000 (married filing jointly)

Why it seems high: When you're an employee, your employer pays half of these taxes (7.65%) and you pay the other half. As a self-employed gig worker, you're responsible for the full 15.3% because you're both the employer and employee.

Good news: You can deduct half of your self-employment tax (7.65%) from your income before calculating your federal income tax. This helps reduce your overall tax burden.

Example: If your net earnings are $50,000, your self-employment tax would be approximately $7,650. You can deduct $3,825 from your income when calculating your federal income tax.

Proposition 22 is a California ballot measure passed in 2020 that allows app-based transportation and delivery companies (like Uber, Lyft, and DoorDash) to classify drivers as independent contractors rather than employees.

Prop 22 Guarantees:

• Minimum Earnings: 120% of local minimum wage for "engaged time" (time spent on trips, not waiting)
• Mileage Reimbursement: $0.37 per engaged mile driven
• Healthcare Stipend: Up to $4,200/year for drivers who average 25+ hours/week, or $2,520/year for 15-24.99 hours/week

Tax Implications:

• Prop 22 benefits (healthcare stipends, mileage reimbursements) are considered taxable income
• You must report all Prop 22 benefits on your tax return
• You're still classified as an independent contractor, so you pay self-employment tax
• You can still deduct business expenses like mileage, phone, etc.

Important: If you're not receiving the minimum guaranteed earnings under Prop 22, you may be owed additional compensation. Use our Prop 22 calculator to verify you're being paid correctly.