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1099 taxes for delivery drivers: what you need to know

Delivering with apps isn't like a regular job: nobody takes taxes out of your check. Here's, in plain words, how much you pay, when, and how to legally pay less.

You're an independent contractor, not an employee

For Spark, DoorDash and Uber Eats you're not an employee: you're an independent contractor, as if you had your own business. That has a good side and a bad side:

• The good: you can deduct your work expenses (mainly mileage) and pay less tax.
• The bad: the app doesn't withhold taxes from your pay. You get all the money, but at the end of the year you have to pay it yourself.

What is the 1099 form?

It's the form each app sends you at the start of the year (usually by the end of January) with what they paid you the year before. It may be a 1099‑NEC or a 1099‑K, depending on the app. You'll almost always find it inside the app or in your email.

Important: you have to report everything you earned, even if an app doesn't send you a 1099. If you earned a little with one app and no form arrived, that money still gets reported.

How much tax do you pay?

As a driver you pay two kinds of tax on your profit (what you earned minus your expenses):

1. Self-employment tax (15.3%): this is your Social Security and Medicare. At a regular job your employer pays half; here you pay all of it. It applies if your profit for the year is $400 or more.
2. Income tax: federal, and in many states state tax too. It depends on your total income and your family.

That's why many drivers set aside between 20% and 30% of each payout for taxes. Better to have too much than too little.

The mileage deduction: your best friend

Every mile you drive for work can be deducted from your income. The IRS sets a per-mile rate every year, and sometimes changes it mid-year if gas goes up a lot:

• 2025: 70 cents per mile all year.
• 2026, January to June: 72.5 cents per mile.
• 2026, July to December: 76 cents per mile.

Since 2026 has two rates, it's important that your mileage log has the date of each trip. You can check the rates on the official IRS page.

That rate already includes gas, maintenance, tires and wear on the car. So if you use the per-mile rate, you can't also deduct gas.

An example with numbers

Imagine that in 2025 you earned $30,000 and drove 15,000 miles for work (2025 rate: 70 cents):

On self-employment tax alone you save almost $1,500, and you also pay less income tax. But to use the deduction you have to be able to prove your miles with a log: date, miles and the purpose of the trip. Here's how: how to keep a mileage log.

A rough example to show the idea. Your situation may be different.

Other expenses you can deduct

• Tolls and parking while working (these are added on top of mileage).
• The work share of your phone and data plan: if you use it 50% for work, you can deduct 50%.
• Insulated bags, phone mounts, chargers and other gear you use to deliver.
• Work apps, like mileage trackers.

Keep your receipts: a photo on your phone works.

Quarterly payments: to avoid a surprise

If you expect to owe $1,000 or more in taxes for the year, the IRS expects you to pay during the year, in four parts. If you don't, they may charge a small penalty. The dates are usually:

• April 15 (for what you earned January to March)
• June 15 (April and May)
• September 15 (June to August)
• January 15 of the next year (September to December)

You can pay for free on the official IRS site with IRS Direct Pay, straight from your bank account. If a date falls on a weekend or holiday, it moves to the next business day.

Step by step: how much to pay and how to fill out Direct Pay, in quarterly estimated taxes.

How to file

Your delivery income and expenses go on Schedule C (profit from your business), and self-employment tax on Schedule SE. Both are filed with your regular return (Form 1040), almost always due April 15.

You can do it yourself with tax software or with a preparer. If it's your first year as a driver, it's worth going to a trusted preparer at least once to learn how it's done.

Quick summary

1. Set aside 20% to 30% of each payout.
2. Log your miles every day you work.
3. Keep receipts for tolls, gear and your phone.
4. If you'll owe $1,000 or more, pay every quarter.
5. Report everything you earned, even without a 1099.

Note: this is general information to help you understand how it works, not tax advice. Rules and amounts change every year. For your situation, talk to a tax preparer or check irs.gov.