1099 Mileage Deduction (2026)

If you received a 1099-NEC or 1099-K this year, the IRS considers you self-employed for that income. Self-employed workers can deduct every business mile at 72.5 cents per mile in 2026, regardless of whether they think of themselves as a business owner.

Who receives 1099 income

• Gig drivers: Uber, DoorDash, Lyft, Instacart, Amazon Flex
• Real estate agents
• Freelance creative workers (designers, writers, photographers)
• Trades workers paid 1099 by general contractors
• Consultants
• Side-hustle income from any platform that pays $600+ in a year

Two forms, one tax treatment

A 1099-NEC is for direct nonemployee compensation. A 1099-K is for payment-card transactions or third-party-network payments above the reporting threshold. Both go on the same Schedule C and both qualify for the same mileage deduction. Some workers receive multiple 1099s from different platforms in the same year. Combine them on a single Schedule C if they relate to the same business activity.

How the deduction works

Multiply your business miles by 72.5 cents. That is your deduction. Subtract it from your 1099 income on Schedule C, line 9. The result reduces both your federal income tax AND your self-employment tax (15.3% on net earnings).

The double tax benefit example

A driver with $40,000 in 1099 income and 20,000 business miles has a $14,500 mileage deduction. At a 22% federal bracket plus 5% state plus 15.3% self-employment tax, that deduction is worth approximately $6,135 in tax savings. The mileage deduction is the single largest tax-saving lever for most 1099 workers.

What 1099 platforms undercount

Platform tax summaries (Uber, DoorDash, Lyft) typically only count miles when a passenger or order is in the vehicle. The IRS lets you deduct deadhead miles too. Repositioning between trips, returning to a busy area, driving while logged in but waiting for a request. Most full-time gig drivers leave 30 to 50 percent of deductible mileage on the table without independent tracking.

Recordkeeping

Contemporaneous logs with the four required IRS fields (date, destination, purpose, miles) are what hold up in an audit. Platform statements alone are not enough. They undercount and they lack the business-purpose field. See full log requirements.

Quarterly estimated tax

1099 workers do not have an employer withholding tax for them. If you expect to owe more than $1,000 in federal tax for the year, the IRS expects quarterly estimated payments. The mileage deduction reduces the income you base estimates on.

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