Deductions for Self-Employed and Gig Workers
There are plenty of legitimate tax deductions you're likely missing out on. Read the post to find out more.
Gig workers have revolutionized the way many people use their phones and cars for work. With the rise of the gig economy, these individuals have found new opportunities to earn income by leveraging the convenience and flexibility of their mobile devices and vehicles.
Through various apps and platforms, gig workers can now easily connect with customers and provide services on demand. Whether it's driving for ride-sharing companies or delivering goods, their phones serve as a crucial tool for communication, navigation, and tracking.
Additionally, their cars become their workplaces, allowing them to maximize their productivity while being on the move. This transformative shift has empowered gig workers to take control of their schedules, choose their own gigs, and ultimately, create a sustainable livelihood through the seamless integration of technology and transportation.
Along with these changes in work conditions, you are eligible for a whole host of tax deductions you may be missing out on.
Track your mileage. There are plenty of mileage tracking apps available. Use one every time you're driving as a gig worker. The 2023 CRA rates are $0.68 for the first 5000km, and $0.62 after that. If you're in the Northwest Territories, Yukon, or Nunavut, add an extra $0.04/km.
So if you drive 5000km for SkipTheDishes, for example, you can deduct $3400 from your taxable income. You cannot deduct repairs or maintenance for your vehicle: those costs are built into the mileage rate. And the rates are going up for 2024. Start tracking now!
You're definitely using your mobile phone for your gig job. You can deduct a portion of your mobile plan costs. You need to determine the percentage that you use the phone for personal purposes and the percentage that you use the phone for your gig work. Then you can deduct the gig work percentage of your phone bill.
So if your phone bill is $90/mo, and you use your phone about 35% of the time for your gig work, you can deduct $378 if you do your gig work all 12 months. If you have a separate phone that you only use for your gig work, you can deduct the entire cost!
We at Friendly Fox Tax Services know how to help you maximize deductions you didn't even know you were entitled to in order to minimize your tax burden. In many cases, it could significantly increase your tax return! So get in touch and let's get to work for you.