Gig economy
Whoever drives for a platform is a small business owner — and the vehicle is the biggest expense.
Rideshare and delivery drivers are, from a tax standpoint, small-business owners: the platform is a client, not an employer. The largest operating expense is the vehicle, and the only way to convert that cost into deduction is rigorous mileage logging. An active Uber/Lyft driver runs 3,000 km/month: at US$ 0.67/mi (about 2,014 mi/month) recovers US$ 1,349/month — US$ 16,190/year. An iFood courier with 5,000 km/month at R$ 0.85 recovers R$ 4,250/month — R$ 51,000/year. These numbers frequently exceed net platform earnings.
The gig economy is the category where the most money is left on the table out of pure ignorance. Platforms issue 1099-K (US), DARF (BR), CFDI (MX), but rarely educate the worker on how to deduct. This guide walks through the steps per country, what counts as a deductible mile (including deadhead — between-trip travel without an active fare), and how to avoid the trap of trusting only the platform dashboard.
In the US, platforms issue 1099-K for gross payments above US$ 5,000 (2024) — though the IRS plans to lower the threshold to US$ 600 in future years. The driver reports income on Schedule C and deducts miles on line 9 — IRS standard rate of US$ 0.67/mi in 2025 or actual expense. Crucially, deductible miles include (a) trips with a passenger, (b) between-trip travel (deadhead), (c) trips to the gas station/car wash if the vehicle is dedicated, and (d) trips to gig-food customers. They do NOT include the trip from home to the first pickup of the shift (commuting).
In Brazil, MEI drivers report annual revenue via DASN-SIMEI; above R$ 81k/year they migrate to Simples Nacional. Mileage feeds operating cost. For Carnê-Leão purposes (self-employed without MEI), mileage is a deductible expense on the DIRPF.
In Mexico, Uber/DiDi drivers under RESICO simplify up to MXN 3.5M annual revenue; above they migrate to régimen general de actividad empresarial, deducting fuel and maintenance via CFDI.
There is no reimbursement in the gig economy: the per-trip or per-delivery payment covers the entire operation. The worker is their own finance department — and the only structure is tax deduction. That is why documentation is so critical: what was not logged was not deducted. Auto-logging apps integrate with Uber/iFood and capture deadhead miles that the platform dashboard does not show.
Common mistakes in the gig economy:
Drivers and couriers who document complete mileage (including deadhead) frequently recover 30% to 50% of platform gross as tax deduction — turning heavy gig work into actual margin.