How is gig income from apps like Uber or DoorDash taxed?
Gig platform earnings are self-employment income, so you owe both regular income tax and self-employment tax (Social Security and Medicare) on the net profit, and no taxes are withheld for you. You report it on Schedule C and can deduct business expenses, which for drivers often means the standard mileage rate covers a large share of income. Keep a mileage log, since it's usually your biggest write-off. Platforms send a 1099-NEC or 1099-K depending on payment type and amount, but you must report all earnings regardless. Because nothing is withheld, set aside a portion of each payout and make quarterly estimated payments to avoid an underpayment penalty. Even a side gig can create a real tax bill if you don't plan for it.
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