Tax Tips for Dayton Gig Workers and the Self-Employed

Driving for DoorDash after work, picking up Uber passengers on weekends, doing hair from home, handling lawn care jobs, or taking freelance and contract work can all create additional income. They can also make your tax return more complicated than a return with only a W-2.

For people earning money independently, understanding Dayton gig worker taxes can make a major difference at filing time. Gig and self-employment income must generally be reported, but legitimate business expenses may reduce the profit that is subject to tax.

Here is what Dayton gig workers and self-employed taxpayers should know about income, mileage, business expenses, self-employment tax, and the records to bring when filing a 2026 tax return.

How gig income is taxed

Income from rideshare driving, food delivery, freelance work, cleaning, beauty services, home repair, lawn care, childcare, and many other independent activities is taxable even when the work is part-time or temporary.

The IRS requires taxpayers to report gig-economy income even if they do not receive a Form 1099. Payments made in cash or through apps and digital platforms can still be taxable income.

If you operate the activity as a business or sole proprietor, income and eligible business expenses are generally reported on Schedule C. The difference between your business income and deductible expenses determines your net business profit or loss.

You can learn more from the IRS Gig Economy Tax Center.

No taxes may be withheld from your gig payments

One major difference between W-2 employment and independent work is withholding. Employers generally withhold federal income tax and Social Security and Medicare taxes from employee wages. Gig platforms and customers usually do not do that for independent contractors.

As a result, receiving $10,000 from delivery, rideshare, freelance, or contract work does not necessarily mean the entire $10,000 is available to spend without tax consequences.

On the other hand, self-employed taxpayers may be able to deduct ordinary and necessary business expenses. Those deductions can reduce net business profit and, therefore, affect both income tax and self-employment tax.

2026 mileage deduction for Dayton gig workers

If driving is part of your business, vehicle expenses may be one of your most significant deductions. However, 2026 has an unusual rule: the IRS changed the business standard mileage rate in the middle of the year.

• January 1 through June 30, 2026: 72.5 cents per business mile
• July 1 through December 31, 2026: 76 cents per business mile

That means taxpayers using the standard mileage method need to separate their eligible business mileage between the first and second halves of the year.

For example, 25,000 qualifying business miles split evenly between the two periods would produce a standard mileage deduction of approximately $18,563 before considering any other separately deductible vehicle-related expenses that may apply.

You can confirm the current rates on the IRS standard mileage rates page.

Business miles are not the same as commuting miles

Not every mile driven is automatically deductible. Transportation that qualifies as business travel can be treated differently from ordinary commuting between your home and a regular workplace.

Rideshare and delivery drivers should keep detailed records showing when business driving began, where they traveled, the number of miles driven, and the business purpose of the trip.

A mileage-tracking app can make recordkeeping easier, but the important part is maintaining accurate documentation throughout the year. If your mileage records are incomplete, talk with your preparer about what documentation is available rather than estimating or inventing mileage.

Other tax deductions for Dayton gig workers

Mileage is only one possible business expense. Depending on the type of work you do and how an expense is used, other deductions may include:

• Phone and data service. The business-use portion of a phone bill may be deductible when the phone is used for work.
• Business equipment and accessories. Items such as a phone mount, charging equipment, tools, or other supplies used for the business may qualify as business expenses.
• Vehicle expenses. Instead of the standard mileage method, some taxpayers may qualify to use the actual-expense method and deduct the business-use portion of eligible vehicle costs such as fuel, maintenance, insurance, and depreciation. Rules apply, and you generally cannot claim both methods for the same vehicle expenses.
• Business parking and tolls. Qualifying parking fees and tolls incurred while conducting business may be deductible. Traffic and parking fines are not deductible business expenses.
• Supplies. Cleaning products, beauty supplies, tools, safety equipment, packaging, and other items purchased for the business may qualify when they are ordinary and necessary for the work.
• Professional services and platform expenses. Certain fees, software, subscriptions, advertising costs, and other expenses directly related to running the business may also qualify.

Keep receipts, statements, invoices, and other records that show both the amount of an expense and its connection to your business.

What about self-employed health insurance?

Some self-employed taxpayers with net business profit may also qualify for a separate deduction for health insurance premiums paid for themselves and certain family members.

However, the rules are more specific than simply being self-employed. For example, the deduction generally is not available for months when you were eligible to participate in certain subsidized health plans through your own employer, your spouse’s employer, or another qualifying employer plan. The deduction is also subject to earned-income limitations.

Your preparer can review your insurance coverage and determine whether this adjustment applies to your situation.

How self-employment tax works

Self-employed workers generally pay Social Security and Medicare taxes through self-employment tax rather than having those amounts withheld by an employer.

The self-employment tax rate is generally 15.3%: 12.4% for Social Security and 2.9% for Medicare. Under the regular calculation, the tax generally applies to 92.35% of net earnings from self-employment, subject to the applicable Social Security wage limit and other rules.

For example, if Schedule C shows $15,000 of net business profit, the basic calculation does not simply multiply $15,000 by 15.3%. Schedule SE generally first applies the 92.35% factor before calculating the applicable Social Security and Medicare taxes.

Self-employed taxpayers can also generally deduct the employer-equivalent portion of their self-employment tax when calculating adjusted gross income. That adjustment reduces income subject to income tax, although it does not reduce the self-employment tax itself.

For more information, review the IRS guide to self-employment tax.

Gig income and tax credits

Having self-employment income does not automatically prevent you from qualifying for tax credits. Net earnings from self-employment can count as earned income for purposes of the Earned Income Tax Credit when the applicable requirements are met.

A taxpayer may have both W-2 wages and Schedule C income on the same return. Depending on total income, filing status, qualifying children, withholding, business profit, and other factors, credits such as the EITC or Child Tax Credit may affect the final tax result.

However, there is no reliable rule that says a certain amount of gig income or a certain number of children will produce a refund. Each return needs to be calculated using the taxpayer’s actual information.

Do gig workers need to pay estimated taxes?

Because taxes are generally not withheld from independent-contractor payments, some self-employed taxpayers may need to make estimated tax payments during the year rather than waiting until tax season.

This can be especially important when gig work becomes a substantial source of income. If you also have a W-2 job, another option in some situations may be adjusting the withholding from that paycheck. A tax professional can help determine whether estimated payments or additional withholding make sense based on your expected annual income.

What Dayton gig workers should bring when filing

Good records make self-employment returns much easier to prepare. Depending on your situation, bring:

• 1099-NEC, 1099-K, 1099-MISC, and other income forms you received
• Records of business income even if no 1099 was issued
• Your mileage log for qualifying business driving
• Receipts, invoices, or account statements for business expenses
• W-2 forms if you also worked as an employee
• Tax documents and information related to dependents and credits you plan to claim
• Your prior-year tax return if available, especially if this is your first year reporting self-employment income

Get help with Dayton gig worker taxes

Titan Tax Dayton is located at 3950 Salem Ave, Dayton, OH 45406. The Salem Avenue office offers free parking and welcomes walk-ins with no appointment required. Call (937) 766-1040 to speak with the Dayton team.

If you are expecting a federal refund and want to understand your options for accessing part of it sooner, read our guide to how the Titan Tax Refund Advance works in Dayton.

This article provides general educational information and does not constitute individual tax advice. Mileage rates, deductions, tax-credit rules, and other tax provisions can change and may depend on individual circumstances. Confirm current information with IRS guidance or a qualified tax professional.