1. Meet Our Example Driver
Maria drives for DoorDash and Uber Eats in Orlando. She is single, 34, has no W-2 job, and no other income. This walkthrough uses her real-world numbers with **2026 tax figures** — every step shown so you can plug in your own amounts. Her year in summary: - Gross platform income (including tips): $28,000 - Other business expenses (phone share, supplies, bags): $900 - Business miles: 8,000 (4,000 in the first half of the year, 4,000 in the second half) - Tolls paid while dashing and driving: $310 - Federal tax withheld: $0 — platforms don't withhold
2. Step 1: Does She Even Have to File?
Yes. A common beginner mistake is applying the W-2 filing threshold to gig work. For self-employment income, the rule is much lower: **net earnings of $400 or more from self-employment require a tax return** — regardless of your total income or filing status. Maria's net profit (calculated below) is well over $400, so she must file.
3. Step 2: Calculate the Mileage Deduction
2026 is unusual: the IRS set **two business mileage rates** — 72.5 cents per mile for January through June, and 76 cents for July through December. Maria's log splits her miles across both periods: - First half: 4,000 miles x $0.725 = $2,900 - Second half: 4,000 miles x $0.76 = $3,040 - Total mileage deduction: **$5,940** If you don't split your log, you can still compute a blended rate, but the IRS-standard method is to apply each period's rate to that period's miles. This is why a log with dates matters.
4. Step 3: Calculate Net Profit on Schedule C
Net profit is gross income minus business costs: - Gross income: $28,000 - Minus other expenses: $900 - Minus mileage: $5,940 - Minus tolls: $310 - **Net profit: $20,850** Everything flows from this number, which is why records decide your tax bill.
5. Step 4: Self-Employment Tax
Self-employment tax is 15.3% (12.4% Social Security + 2.9% Medicare), applied to 92.35% of net profit: - $20,850 x 0.9235 = $19,255 - $19,255 x 15.3% = **$2,946 SE tax** She also gets to deduct half of it ($1,473) later, which softens the income-tax side.
6. Step 5: Adjusted Gross Income
- Net profit: $20,850 - Minus half of SE tax: $1,473 - **AGI: $19,377**
7. Step 6: Standard Deduction
Her 2026 standard deduction as a single filer is **$16,100**, leaving $3,277 of income above it.
8. Step 7: The QBI Deduction
The qualified business income deduction is the *lesser* of 20% of qualified income ($3,875) or 20% of taxable income before QBI ($655). The limit applies: **$655 deduction**, leaving taxable income of **$2,622**.
9. Step 8: Income Tax
All of $2,622 falls in the 10% bracket (which reaches $12,400 in 2026): **$262 federal income tax**.
10. Step 9: The Bottom Line
- Income tax: $262 - Self-employment tax: $2,946 - **Total tax: $3,208** - Withheld: $0 - **Balance due: $3,208** — about $802 per quarter if she pays evenly As a share of gross income: **11.5 cents of every app dollar** should be set aside for federal tax (more if you owe state tax or want margin).
11. Why the SE Tax Dominates
Notice Maria's SE tax ($2,946) is eleven times her income tax ($262). For lower-profit gig workers, self-employment tax is almost always the main bill — which is why deductions like mileage (and for notaries, the notarial fee allocation) matter far more than bracket planning.
12. Run Your Own Numbers
Want to see this math with your numbers? Our free Driver Tax Estimator runs the same calculation in your browser — nothing you type is sent anywhere. Then bring your payout reports and mileage log to your appointment and we will prepare the real thing. Prefer a printable copy? Download the free Self-Employed Worker's 2026 Tax Basics guide (PDF).