Year-End Tax Checklist for Gig Drivers: 1099-K vs 1099-NEC, the $20,000 Rule and What to Do Before December 31

Tax forms for 2026 arrive in a couple of months, and the rules for who gets one changed. Many drivers won't receive a form at all this year. That doesn't mean you owe less. Use November and December to get your records in order so filing in the spring is quick and you keep every deduction you earned.

Which forms to expect in January

The planned drop of the 1099-K threshold to $600 was reversed by the One Big Beautiful Bill Act, signed in July 2025, which restored the $20,000 and 200-transaction rule. The 1099-NEC threshold rose to $2,000 starting with 2026 payments.

Dates to put on your calendar

• December 31, 2026: last day for business purchases and expenses to count for 2026.
• January 15, 2027: fourth-quarter estimated tax payment for 2026 is due.
• February 1, 2027: 1099 forms should be sent to you by about this date (January 31 falls on a Sunday).
• April 15, 2027: 2026 tax return due, unless you file an extension. An extension gives you more time to file, not more time to pay.

Your year-end checklist

1. Close out your mileage log. Split it into two parts: January through June at 72.5 cents a mile, and July through December at 76 cents a mile. See our 2026 mileage rate guide. App mileage reports usually miss the miles you drive to pickups, so use your own log if you have one.
2. Download your earnings from every app. Save monthly or weekly statements from each app you drove for this year, including ones you stopped using. If you get a 1099, check it against your own records.
3. Total your tips. For 2025 through 2028, rideshare and delivery drivers can deduct up to $25,000 of tips from federal income tax. You still owe self-employment tax on them. See no tax on tips explained.
4. Gather your other deductions. Even with the standard mileage rate, you can usually deduct parking and tolls for business trips, part of your phone bill, and supplies like phone mounts, chargers and insulated bags. You can't deduct gas or car repairs on top of the mileage rate.
5. Buy what you need before December 31. If you were going to replace a dash cam or delivery bags anyway, buying in December counts for 2026. Don't buy things you don't need just for the deduction; a deduction only saves a fraction of the price.
6. Estimate what you owe and pay by January 15. Self-employment tax is 15.3% of your net profit, plus income tax. If you'll owe $1,000 or more and haven't paid estimates, the January 15 payment can reduce penalties.
7. Check your health insurance deduction. If you paid for your own health plan, you may be able to deduct the premiums. See our health insurance guide for gig drivers.
8. Bought a new car with a loan? A new deduction for 2025 through 2028 lets some people deduct up to $10,000 a year of interest on a loan for a new, U.S.-assembled personal vehicle, with income limits. Ask a tax professional how it fits with the business use of your car.

Frequently asked questions

I made $8,000 on DoorDash. Do I have to report it? Yes. You probably won't get a 1099-K for that amount, but all self-employment income must be reported. If your net profit is $400 or more, you also owe self-employment tax.

Why is my 1099-K higher than what I was paid? A 1099-K can show gross amounts before the app's fees. You report the full amount and then deduct fees and expenses. Your app's tax summary usually breaks this down.

I drive for three apps. Do I combine them? Yes. Add up income from all apps on one Schedule C if it's the same kind of work, and track miles for all of them together.

Bottom line

Fewer 1099s this year doesn't mean less tax. Spend an hour before December 31 to close out your mileage log, download every app's earnings and total your tips. Then make your January 15 payment. That one hour can save hundreds of dollars and a stressful April.