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How the Big Beautiful Bill Affects Gig Workers
- Joseph Mandracchia
- Jul 29
- 5 min read
Updated: Jul 30
Whelp, looks like it finally happened, the “One Big Beautiful Bill” was just signed into law on July 4, 2025, and it contains massive wins for gig workers across the country.
While most of the media is focused on other parts of the bill, there are hidden gems inside that directly benefit delivery drivers, rideshare workers, and independent contractors alike.
So If you're a gig worker driving for DoorDash, Uber Eats, Grubhub, Instacart, or any of the other apps out there… this is big!
So in this article, We are talking about:
How the Big Beautiful Bill Passing affects Gig Workers
What the Masses are saying vs how it ACTUALLY is
Everything in between!
Disclaimer: The content of this article does not contain and is never intended to be legal, business, financial, tax, or health advice of any kind, This video is for entertainment purposes only. It is advised that you conduct your own research and consult with qualified professionals before applying anything you find online.
I also want to be clear that everything we are going to go over is very market dependent and case by case, and what applies to me and my market may not apply to you.
A Quick Note about Politics
Driven Wyld is not a political channel, has never been a political channel, and will never be a political. The only reason we are going over this is because of how it will impact Gig Workers, not because of anything else.
Please keep all political opinions out of the conversation about this. (yes, I have received that many comments about this to where I have to address it specifically...)
No Tax on Tips (kind of)
If you’re earning tips through the app or handed cash directly by customers, the IRS will now let you exclude up to $25,000 in tip income from your federal taxable income.
Applies to gig workers with a Modified Adjusted Gross Income (MAGI) under $150,000 (or $300,000 if married filing jointly).
Any tips above that cap are still taxed as normal.
Applies to 1099 contractors and W-2 employees, including delivery drivers, rideshare drivers, and service workers.
This is a massive win for full-time drivers and shoppers who rely on tips for a major portion of their income.
This isn’t quite the full exemption we thought it would be but it is a significant deduction and a massive win, especially for full-time gig workers who rely on tips to make ends meet.
I also don’t want to stick to this point too much because we did go over it a lot already in previous videos and posts, so if you haven’t seen them already, feel free to check it out!
1099-K Rule Rollback
This has a few benefits that are vital for Gig Workers as well as for other aspects of entrepreneurship.
In 2023 and 2024, a lot of gig workers got hit with unexpected 1099-K forms for things like Venmo, CashApp, or PayPal payments—even when it had nothing to do with business.
That’s now been fixed.
The law reverses the controversial $600 reporting threshold for 1099-K forms from third-party payment apps (like Venmo, PayPal, and CashApp).
The new bill restores the original $20,000/200 transaction threshold for 1099-K reporting. So if you’re getting reimbursed for gas, splitting bills with a roommate, or receiving personal payments, you won’t get flagged by the IRS over a few casual transfers.
This change reduces the confusion and helps gig workers keep their finances cleaner and easier to manage, so your tax professional can focus on getting you more deductions rather than sorting out what is and isn’t business.
Mileage and Business Deductions
While not a “new” benefit, the bill locks in some key existing business provisions and tax rules that help gig workers reduce their taxable income, which is important for those of us treating this like a business:
Mileage Deduction: You can still deduct business miles (2025 rate is $0.67/mile).
Section 179 Expensing: You can fully deduct tools like phones, chargers, hot bags, or other gear used in your delivery or driving work.
Bonus Depreciation remains at 100%, letting you write off large purchases immediately if used for business.
So if you're tracking your mileage, saving receipts for your gear, or investing in tools to improve your efficiency, this bill keeps those deductions available and strong.
Also make sure you are using tools to automatically track your mileage to save you time, energy and resources! The one I use is MileIQ!
MileIQ is the #1 mileage tracking app with 80,000+ 5 star ratings on the Apple App Store and Google Play.
MileIQ makes it easy to:
Track Miles Automatically: MileIQ tracks drives for you — just get in your car and start driving.
Easily Classify Your Drives: Classify your personal or business drives with a swipe
Set Custom Mileage Rates: Use MileIQ’s tax-compliant mileage rates or set your own custom rates
Name Locations: Give names to locations you visit regularly to make classifying and reporting even easier
Add Multiple Vehicles: MileIQ makes it easy to track every mile for every vehicle
Send and Download Reports: Send and download custom reports with a tap
How This Can Affect You
Also, there are MANY Gig workers making more of that in gross income which will inevitably mean more Net Savings!
That said, this also means you are doing things by the book and working with Qualified Professionals to help you file correctly and legally and help you maximize your tax Savings! Which is where GigTax is here to help!
Gig workers, File faster, for less, with a 5-star tax pro who knows your hustle.
Anyone who is self employed shouldn’t be letting taxes slow them down or eat into their earnings when they can be getting Affordable Tax Prep with GigTax!
GigTax was founded by Joseph Mayo, a seasoned Gig Worker with over 7000 deliveries across 7 platforms since 2020, and they understand the challenges of freelancers, rideshare drivers, couriers, online sellers and gig workers of all kinds!
Their #1 Online Tax Preparation service is designed to maximize your tax savings and save you time, energy and money!
Enjoy exclusive perks like electronic and state filing, secure portal access, year-round support from a dedicated tax pro, and audit protection—all included.
“Joseph was extremely professional and knowledgeable. He took the time to understand my unique tax situation as an independent contractor and gave me valuable insights.”
— Rachel, Gig Driver (Instagram: @the_maddasher)
Book your free strategy session today at gigtaxservice.com/drivenwyld and enter code "wyld" (all lowercase) to access your special offering and Let GigTax simplify and save you money on tax journeys.
If you would like to add some other perspective to how the Big Beautiful Bill will affect gig workers, feel free to email me: drivenwyld@gmail.com and who knows? Maybe your email or perspective and be featured in a post as well!
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