Tax records gig workers should keep
Good records make tax time faster and help you support what you report if the IRS asks. This guide lists the records most gig workers need and the retention periods the IRS publishes.
The standard the IRS uses
According to IRS Topic 510, you must substantiate your expenses by adequate records or by sufficient evidence to support your own statement. For car expenses, Publication 463 says a written record is generally needed.
What to keep
- Income records: 1099 forms, platform tax summaries and weekly or monthly earnings statements, and your own totals including cash tips
- Mileage log: date, destination, business purpose, and miles for each business trip
- Receipts and proof of payment for business expenses, such as phone, supplies, tolls, and parking
- Estimated tax payment confirmations and the dates you paid
- Copies of filed returns and the IRS forms and schedules you used
How long to keep records
The IRS page How long should I keep records lists these general periods:
- 3 years from when you filed, if none of the situations below apply
- 6 years if you did not report income that you should have reported (the IRS page ties this to omitted income of more than 25% of the gross income shown on the return)
- 7 years if you file a claim for a loss from worthless securities or a bad debt deduction
- Indefinitely if you do not file a return, or if you file a fraudulent return
- At least 4 years after the tax becomes due or is paid, whichever is later, for employment tax records
Publication 463 separately says to keep car expense records for 3 years from the date you file the return on which you claimed the expense. If you are unsure which period applies to you, keeping records longer costs little.
Tips for organizing
Record trips and expenses when they happen, not weeks later. Keep a photo of each receipt in the same place as your other records. Save each platform's year-end summary when it arrives. Back up your records regularly, and keep exported copies somewhere other than the device you use for work.