Learn how to pay less taxes to keep more of the money you earn.
I started gig working in 2017. Working the gig apps to earn extra income helped me pay off bad debt and make money to buy groceries and gas without using a credit card. That is how it started for me.
While I worked in the field, I met and got to know people who, like me, were using gig apps to get ahead. What I learned about most was that they did not track the miles they drove to earn money. For instance, if a gig worker drives 100 miles a week for their gig jobs, they could potentially deduct $ 58 from their taxes. If a gig worker does not track miles to deduct them on their tax return, a person accepting gig jobs works for free. Deducting miles driven while using gig apps helps people pay fewer taxes at tax time.
Gig jobs offered through UberEats, DoorDash, GrubHub, and InstaCart, to name a handful, don’t pay fair wages (gig workers depend on tips), don’t deduct Social Security or Medicare tax, and most don’t inform you that you can list Instant Cashout Fees as a business expense. People working the gig apps must learn about tax deductions and understand that they must pay Social Security and Medicare. Many gig workers don’t know they are working and putting themselves in a poor financial position.
I’m a gig worker classified as an independent contractor who started to use software programs to pay her taxes. Taking the time to learn how to do my taxes has taught me to pay fewer taxes, which has helped increase my income. I earn more income than most gig workers because I learned about AGI (Adjusted Gross Income) tax deduction. This means that I can deduct certain expenses from my total income, which reduces the amount of income that is subject to tax. For instance, I can deduct the miles I drive, and the Instant cash fees as a business expense. I watched the software tax estimator lower my Federal taxes by a couple of thousand dollars.
If you are a gig worker and want to learn how to pay fewer taxes at tax time, take the time to listen to the video. In this video, you’ll understand how gaining more of a financial education can help you keep more of the income you earn. The video will cover topics such as tracking your expenses, understanding tax deductions, and managing your income effectively.
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