1099/Schedule C gig income qualifies for 20% Qualified Business Income deduction below the SSTB phase-out.
IRC §199A allows a 20% deduction on Qualified Business Income from pass-through entities and Schedule C. Gig workers (drivers, freelancers, delivery, creators) qualify below the SSTB phase-out ($241,950 single / $483,900 MFJ, 2024). On $50K of net gig income, that's $10K off taxable income (~$2,200 federal tax). Certain 'specified service trades' (consultants, lawyers, health) get phased out — but most gig work (drivers, creators, non-professional freelancers) is NOT an SSTB. Automatic if you file Schedule C profitably.
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Full-time gig drivers set up Solo 401(k) — defer $23K + 25% profit-share, potentially $50K+/yr into retirement tax-deferred.
Rideshare/delivery drivers compare 67¢/mi standard vs actual (gas+depreciation+insurance) — pick larger each year.
New gig workers with early-year losses defend deductibility by satisfying §183 profit-motive factors — 9-factor test.
Freelancer with S-corp deducts home office via accountable plan + rents home to S-corp 14 days/yr for meetings — double dip.