A Guide to Filing Taxes for Freelancers and Gig Workers in 2025

Are you a freelancer, gig worker, or independent contractor preparing to file your taxes for the2024 tax year? Whether you drive for Uber, Lyft, DoorDash, or Grubhub, sell goods online, or offer professional services through platforms like Fiverr and Upwork, understanding how to file your taxes as a freelancer is crucial.

Here’s everything you need to know about filing taxes for gig workers and freelancers in 2025. We’ll go over estimated taxes, self-employment tax, and maximizing your tax deductions.

Who Needs to File Taxes as a Freelancer or Gig Worker?

If you earned $400 or more from freelance work, gig jobs, or independent contracting in 2024, you are required to file a tax return. This applies even if your work was part-time, temporary, or a side hustle.

Common Types of Gig Work That Require Tax Filing:

• Rideshare Driving: Uber, Lyft, DoorDash, Grubhub, etc.
• Selling Goods Online: Etsy, eBay, Amazon, Shopify.
• Freelance Professional Services: Writing, graphic design, marketing, consulting.
• Rental Income: Airbnb, Turo, renting equipment or property.
• On-Demand Services: TaskRabbit, Handy, Fiverr.
• Digital Content Creation: YouTube, Patreon, OnlyFans.

If you’re unsure whether you’re classified as an employee or an independent contractor, ask your employer or check your worker status to avoid mistakes.

Why Freelancers and Gig Workers Need to Pay Estimated Taxes

Unlike traditional employees, freelancers and gig workers don’t have taxes automatically withheld from their earnings. Instead, you are responsible for paying both:

• Self-Employment Tax: Covers Social Security and Medicare taxes.
• Income Tax: Based on your total earnings, deductions, and credits.

Who Needs to Pay Estimated Taxes?

• Anyone expecting to owe $1,000 or more when filing their tax return.
• Gig workers and freelancers earning over $400 in net income. 

When Are Estimated Taxes Due in 2025?

• April 15: For income earned January 1 – March 31.
• June 15: For income earned April 1 – May 31.
• September 15: For income earned June 1 – August 31.
• January 15 (following year): For income earned September 1 – December 31. 

How to Track Your Income and Expenses for Tax Filing

Proper record keeping is essential for freelancers, independent contractors, and gigworkers. Keeping accurate records can help you:

• Avoid IRS audits.
• Claim all eligible tax deductions.
• Maximize your tax refund.

What to Track:

• Income Sources:
  • Payments from apps (PayPal, Venmo, Cash App).
  • 1099 forms (1099-K, 1099-NEC, 1099-MISC).
  • W-2s (if you have mixed employment). 
• Expenses:
  • Vehicle-related costs (mileage, gas, maintenance) for rideshare or delivery drivers.
  • Home office expenses (rent, utilities, internet) if you work from home.
  • Business tools, software, and subscriptions.
  • Advertising and marketing expenses.
  • Health insurance premiums (if self-employed). 

Tax Deductions and Credits for Freelancers and Gig Workers

One of the most significant advantages of being self-employed is the ability to deduct business expenses. Reducing your taxable income is key to maximizing your tax refund and lowering your overall tax bill.

• Home Office Deduction: Deduct a portion of your rent, mortgage, utilities, andinternet if you work from a dedicated space in your home.
• Vehicle Expenses: Deduct mileage, gas, repairs, insurance, and other driving-related expenses.
• Advertising Costs: Websites, social media promotions, digital ads.
• Equipment & Supplies: Computers, software, office supplies.
• Self-Employment Health Insurance Deduction: A valuable deduction for those paying their own health insurance premiums.
• Qualified Business Income (QBI) Deduction: You may be eligible to deduct up to 20% of your qualified business income. 

How to File Taxes as a Freelancer or Gig Worker in 2025

When filing your taxes, you’ll need to complete the right forms and report your income accurately.

Forms You’ll Need:

• Form 1040 or Form 1040-SR: For general tax filing.
• Schedule C (Form 1040): Reports profit or loss from business.
• Schedule SE (Form 1040): Reports self-employment tax.
• Form 1099-K: Payment Card and Third Party Network Transactions (if income exceeds $5,000).
• Form 1099-NEC: For freelance or independent contractor work.
• Form 1099-MISC: For miscellaneous income.

Best Tax Filing Options for Freelancers and Gig Workers

There are several ways to file your taxes as a freelancer or gig worker:

• IRS Free File: Free software available through IRS.gov for eligible taxpayers.
• Authorized E-file Providers: IRS-approved tax professionals.
• Volunteer Income Tax Assistance (VITA): Free help for those who qualify.
• Paper Filing: If preferred, you can send your tax return by mail. 

Let Boxelder Handle Your Freelance Tax Filing Needs

Filing taxes as a freelancer or gig worker doesn’t have to be overwhelming. At Boxelder, we specialize in helping freelancers, independent contractors, and gig workers navigate complicated tax rules and avoid penalties.

Here’s how we can help:

• Organize Your Financial Records: We’ll make sure your income and expenses are properly tracked and documented.
• Maximize Your Tax Savings: Our tax professionals will help you identify every available deduction and credit to lower your tax bill.
• Avoid Penalties: We’ll ensure your estimated taxes are calculated correctly and submitted on time.
• Stress-Free Tax Filing: Our streamlined process makes filing your taxes simple, accurate, and efficient. 

Don’t leave money on the table! Contact Boxelder today to ensure your tax filing is accurate and optimized for maximum savings.