GigListoHow to use it
- Enter your business miles. Split them between January to June and July to December, because the IRS rate changed in July. Not sure of the total? Keep a mileage log and add them up.
- Add your other expenses. Phone, tolls, supplies and tax preparation. Leave a line at 0 if it does not apply.
- Pick your tax bracket. If you are not sure, the gig worker tax calculator gives you an idea.
With the starting values (8,000 miles in each half of the year and $1,200 of other expenses), the deductions add up to $13,080, and the rough tax saving is about $3,418 with a 12% federal bracket and no state tax. They are example numbers, not an average for drivers.
Mileage or actual expenses?
This calculator uses the IRS standard mileage rate. That rate already includes gas, repairs, insurance and wear on your car, so you generally cannot deduct those again. If you choose to deduct actual car expenses instead, the math is different and you should ask a tax professional. Read our deductions guide for the IRS rules behind the numbers.
Frequently asked questions
Is the tax saving exact?
No. It multiplies your deductions by the self-employment tax and your federal and state rates, and assumes you have enough profit to use them all. Your real savings can be lower.
Can I count the miles to my house or my commute?
Usually not. Ask a tax professional which of your trips count as business miles.
Does this tool save my numbers?
Only in your own browser, so they are there next time. Nothing is sent to our servers.