Record Keeping for Gig Workers: Complete Guide & Best Practices

Proper record-keeping is the foundation of accurate tax filing and audit protection for gig workers. Without good records, you can't prove your deductions, may overpay on taxes, and risk penalties if audited. The good news: modern apps and digital tools make record-keeping easier than ever.

This comprehensive guide covers everything you need to know about record-keeping in 2026: what records to keep, how long to keep them, the best apps and tools, mileage tracking strategies, and how to protect yourself from audits.

Why Record-Keeping Matters for Gig Workers

1. Maximize Tax Deductions

Without records, you can't prove deductions. Good records ensure you claim every legitimate expense, potentially saving thousands of dollars. For example, tracking 20,000 miles at 67/mile = $13,400 deduction = $3,000-$4,000 in tax savings.

2. Audit Protection

The IRS can audit you up to 3 years after filing (6 years for major errors). If you can't provide documentation, they'll disallow deductions and assess penalties. Proper records are your insurance policy against audits.

3. Accurate Tax Filing

Good records make tax filing faster and more accurate. You'll know exactly what you earned and spent, reducing errors and the risk of underpayment penalties.

4. Business Insights

Tracking income and expenses helps you understand profitability, identify trends, and make better business decisions. You'll know which platforms are most profitable and where you're spending money.

What Records to Keep

As a gig worker, you need to maintain several types of records to support your tax return and protect yourself from audits.

1. Mileage Logs (Most Critical!)

Required Information

  • Date: When the trip occurred
  • Starting location: Where you began the trip
  • Ending location: Where you ended the trip
  • Miles driven: Total distance (odometer readings)
  • Business purpose: Why the trip was business-related

?? IRS Requirement: Contemporaneous Records

The IRS requires mileage logs to be created "at or near the time" of the trip. You can't reconstruct logs months later from memory. Use automatic tracking apps to ensure compliance.

2. Receipts & Expense Documentation

What to Keep

  • Receipts over $75: Required by IRS (must show merchant, date, amount, items)
  • Receipts under $75: Recommended (bank statements may suffice)
  • Equipment purchases: Computers, phones, dash cams, insulated bags
  • Recurring expenses: Phone bills, internet, insurance, subscriptions
  • Vehicle expenses: If using actual expense method (gas, repairs, insurance)

Receipt Must-Haves

Every receipt should clearly show:

  • Merchant/vendor name
  • Date of purchase
  • Amount paid
  • Description of items/services

3. Income Records

Documents to Keep

  • 1099-NEC forms: From all platforms (keep Copy B)
  • 1099-K forms: If received (payment processor reports)
  • Platform earnings summaries: Monthly/annual reports from Uber, DoorDash, etc.
  • Bank deposit records: Showing income received
  • Cash income logs: If you receive cash tips or payments

4. Tax Returns & Supporting Documents

Keep Copies Of

  • Filed tax returns: Form 1040, Schedule C, Schedule SE
  • Quarterly payment records: Form 1040-ES and payment confirmations
  • Prior year returns: Needed for safe harbor calculations
  • Amended returns: Form 1040-X if you filed corrections

How Long to Keep Records

The IRS has specific retention requirements, but it's often safer to keep records longer than the minimum.

3 Years (Minimum)

IRS audit window: The IRS can audit returns filed within the past 3 years.

Keep: Tax returns, receipts, mileage logs, 1099 forms, bank statements

7 Years (Recommended)

Extended audit window: For substantial underreporting (25%+ of income), the IRS can audit up to 6 years back.

Best practice: Keep all tax-related records for 7 years to be safe.

Indefinitely

Keep forever:

  • Vehicle purchase records (for depreciation)
  • Business formation documents
  • Property/asset purchases
  • Retirement account records

Special Cases

No time limit: If you didn't file a return or filed a fraudulent return, the IRS can audit anytime.

Employment taxes: Keep for 4 years (if you have employees).

Best Apps & Tools for Record-Keeping

Modern apps make record-keeping automatic and effortless. Here are the best tools for gig workers.

Mileage Tracking Apps

Stride (Recommended)

Price: Free

Features:

  • Automatic trip detection
  • Swipe to categorize trips
  • IRS-compliant reports
  • Expense tracking
  • Tax deduction estimates

Best for: All gig workers, especially drivers

MileIQ

Price: $5.99/month (40 trips free)

Features:

  • Automatic tracking
  • Smart drive detection
  • Customizable reports
  • Microsoft integration

Best for: High-volume drivers

Everlance

Price: $8/month (30 trips free)

Features:

  • Automatic mileage tracking
  • Expense tracking with receipts
  • Real-time tax savings
  • QuickBooks integration

Best for: All-in-one solution

Hurdlr

Price: Free (Premium $10/month)

Features:

  • Automatic mileage tracking
  • Income/expense tracking
  • Real-time profit/loss
  • Tax estimates

Best for: Multi-platform gig workers

Expense Tracking Apps

Expensify

Price: $4.99/month

Features: Photo receipts, automatic categorization, mileage tracking, expense reports

Best for: Receipt management

QuickBooks Self-Employed

Price: $15/month

Features: Mileage tracking, expense categorization, quarterly tax estimates, Schedule C export

Best for: Comprehensive solution

Keeper Tax

Price: $16/month

Features: Automatic expense finding (scans bank/credit cards), tax-saving suggestions, year-end tax filing

Best for: Hands-off expense tracking

Google Sheets/Excel (Free)

Price: Free

Features: Manual tracking, full customization, works offline

Best for: Budget-conscious, tech-savvy users

Record-Keeping Best Practices

?? 1. Start From Day One

Begin tracking mileage and expenses the moment you start gig work. You can't reconstruct mileage logs months laterthe IRS requires contemporaneous records.

?? 2. Automate Everything Possible

Use apps that automatically track mileage, scan receipts, and categorize expenses. The less manual work required, the more likely you'll stay consistent.

?? 3. Go Digital

Photograph receipts immediately with your phone. Store digital copies in cloud storage (Google Drive, Dropbox, iCloud). Digital records are easier to organize, search, and backup than paper.

?? 4. Separate Business & Personal

Use a dedicated bank account or credit card for business expenses. This creates a clear paper trail and makes record-keeping much simpler.

?? 5. Review Weekly

Spend 15-30 minutes each week reviewing and categorizing expenses. This prevents a massive backlog at tax time and ensures nothing is missed.

?? 6. Backup Everything

Store records in multiple locations: cloud storage, external hard drive, and/or email to yourself. If your phone is lost or computer crashes, you won't lose years of records.

Audit Protection Strategies

Good record-keeping is your best defense against IRS audits. Here's how to audit-proof your records.

1. Maintain Contemporaneous Mileage Logs

The IRS specifically requires mileage logs to be created "at or near the time" of travel. Automatic tracking apps satisfy this requirement. Manual logs created months later will likely be rejected in an audit.

2. Keep Detailed Receipts

For any expense over $75, keep a receipt showing:

  • Merchant name and location
  • Date of purchase
  • Amount paid
  • Description of items/services

3. Document Business Purpose

For questionable expenses (meals, entertainment, travel), note the business purpose. For example: "Lunch with client to discuss project" or "Conference attendance for professional development."

4. Be Consistent

Use the same accounting method year after year. Switching between standard mileage and actual expenses, or changing expense categories, can raise red flags.

5. Don't Exaggerate

Only claim legitimate business expenses. Claiming 100% business use of your phone when it's clearly personal too, or inflating mileage, are audit triggers. Be honest and reasonable.

Related Resources

Gig Worker Tax Deductions

Complete list of deductions you can claim with proper record-keeping.

View Deductions Guide

Mileage Deduction Calculator

Calculate your mileage deduction based on tracked business miles.

Calculate Mileage

Schedule C Guide

Learn how to report your tracked income and expenses on Schedule C.

View Schedule C Guide

IRS Penalties & Audits

Understand audit triggers and how proper records protect you.

View Penalties Guide

Frequently Asked Questions

Good Records = Maximum Deductions + Audit Protection

Record-keeping might seem tedious, but it's the foundation of successful tax management for gig workers. With modern apps that automate most of the work, there's no excuse for poor records.

Start tracking from day one, use automatic mileage and expense apps, go digital with receipts, and review your records weekly. These simple habits will save you thousands in taxes, protect you from audits, and make tax filing stress-free. Your future self will thank you!