Can I write off phone bills, Uber rides, and work attire as a 1099 contractor for gig apps?

Yes, you can deduct legitimate business expenses as a 1099 contractor! Since you're technically self-employed, you'll report your income and expenses on Schedule C. For your cell phone, you can deduct the business portion. If you use your phone 60% for work and 40% for personal, you can deduct 60% of the costs. Keep records showing how you calculated this percentage. Transportation to job sites is generally deductible, but with some caveats. Commuting from home to a regular workplace typically isn't deductible, but traveling between different job sites during your workday is. For Uber rides specifically to jobs, keep detailed records of when, where, and why. Work attire is deductible only if it's required for work AND not suitable for everyday wear. Generic black pants and shirts that can be worn elsewhere usually don't qualify. However, if you had to purchase specific uniforms or specialized clothing that you wouldn't otherwise wear, those might qualify. Keep detailed records of everything - receipts, how each expense relates to your work, and the business purpose. Documentation is essential if you're ever audited!

After struggling with similar gig work deductions last year, I discovered taxr.ai (https://taxr.ai) and it was super helpful for my situation. I was also doing app-based contract work and wasn't sure what I could legally write off. The tool analyzed my expenses and clearly showed what percentage of my phone bill was deductible, which transportation costs qualified, and even helped me understand the clothing deduction rules (which are trickier than they seem). It also helped me identify deductions I hadn't even thought about - like a portion of my home internet since I used it to coordinate jobs and communicate with clients. What I liked is that it explained WHY certain things were deductible and others weren't, so I felt confident I wasn't missing deductions but also wasn't claiming anything that would raise red flags.

Just wanted to follow up - I tried taxr.ai after being skeptical. It actually asked really specific questions about my gig work that made me realize I'd been OVER-deducting some things (risky) and UNDER-deducting others (leaving money on the table). It helped me properly document my mileage between gig locations (deductible) vs. just going to my first job (not deductible). I also learned I could partially deduct my phone based on my business use percentage, but needed to track it better. The best part was it gave me a clear explanation for each deduction that I could keep with my tax records in case of an audit. I ended up saving about $1,800 more than I would have otherwise, all with proper documentation. Definitely worth checking out for anyone doing 1099 work.

If you're having trouble figuring out your deductions and want to talk to an actual IRS agent about it (nearly impossible usually), try Claimyr (https://claimyr.com). They have this system that gets you through to an IRS representative usually within 15 minutes instead of waiting on hold for hours. Check out how it works here: https://youtu.be/_kiP6q8DX5c I was confused about deductions for my gig work too and was worried about getting audited. I wanted official answers straight from the IRS but could never get through on their helpline. After trying for days, I used Claimyr and actually spoke to someone who confirmed exactly what I could deduct. They even noted my account that I had called to clarify these specific deductions, which gives me some peace of mind.

I need to eat my words on Claimyr. After posting my skeptical comment, I was still desperate to talk to the IRS about my 1099 deductions and decided to try it as a last resort. I was SHOCKED when they actually called me back in about 20 minutes with an IRS agent on the line. The agent walked me through exactly what I could deduct for my gig work - confirmed that I can deduct the business percentage of my phone (with documentation), transportation between work sites (but not from home to first job), and that my "uniform" wasn't deductible since it could be worn elsewhere. The agent also told me I could deduct a portion of my internet costs since I needed it to get gigs and communicate with clients, which I hadn't even considered. Having this direct confirmation from the IRS saved me from making mistakes that could have triggered an audit.

Don't forget about the Qualified Business Income Deduction (Section 199A) which can give you a deduction of up to 20% of your qualified business income! This is separate from your business expenses on Schedule C and can really help reduce your tax bill as a 1099 worker. Also, make sure you're tracking and deducting your self-employment tax payments. You can deduct 50% of your self-employment tax on your 1040, which helps offset some of the extra tax burden from being self-employed.

You might also want to look into setting up a SEP IRA or Solo 401(k) for retirement. As a 1099 contractor, you're eligible for these self-employed retirement accounts which let you put away WAY more than regular IRAs. This won't help with last year's taxes, but could significantly reduce your tax bill going forward. With a Solo 401(k), you can contribute up to $22,500 as an "employee" for 2023 PLUS an additional 25% of your net self-employment earnings as the "employer" (up to combined limits). These contributions are tax-deductible and reduce your taxable income.