Core Insights - Side gigs can be profitable for many Americans but come with tax complexities that require proper planning and understanding of deductions available to freelancers and gig workers [1] Group 1: Tax Deductions for Gig Workers - The Home Office Deduction is significantly underclaimed, with only an estimated 15% of eligible sole proprietors taking advantage of it, despite many working primarily from home [3] - Freelancers often miss or underclaim the home office deduction due to perceived risks, but it is legitimate if a specific area is used exclusively for business [4] - A general guideline suggests deducting between 8% and 15% of housing expenses, which can result in substantial savings depending on the city [4][5] Group 2: Vehicle and Mileage Deductions - Vehicle use is a valuable deduction for gig workers, especially for those who drive frequently, such as Uber and DoorDash drivers, who may overlook thousands of deductible miles [6] - Many freelancers fail to log business miles accurately, often confusing personal and business use, which can lead to mistakes in deductions [7] - It is important to choose between the standard mileage rate and actual expenses, as both cannot be used simultaneously [7] Group 3: Software and Digital Tools Deductions - Many freelancers neglect to deduct costs associated with software and digital tools that are essential for their work, despite these being eligible for deductions [8] - Business-related subscriptions and educational expenses related to digital tools like Canva, Zoom, and QuickBooks can also be deducted [8]

Core Insights - The 27-year-old Canadian is facing a financial decision between paying off debt and saving for a house, with CA$1,500 in savings, CA$11,000 in credit card debt at 12% APR, and a CA$4,000 car loan at 7.99% APR [1][3] Debt Management - Reddit users strongly advised prioritizing debt repayment, particularly the high-interest credit card debt, to avoid accumulating more interest [2][3] - The credit card debt has a significantly higher APR compared to the auto loan, making it more critical to pay off first to minimize interest accumulation [3] Financial Strategy - Commenters suggested that the individual should not start saving for a house until the debt is managed, as the 12% interest on the credit card debt exceeds average market growth [4] - Reducing expenses and potentially taking on a side gig were recommended as strategies to accelerate debt repayment [4][5] Side Income Opportunities - The individual is already engaged in freelancing, earning an additional CA$1,000 per month, which can aid in paying off debt [5] - Side gigs can be temporary solutions until the debt is cleared, with some individuals transitioning them into full-time work [6] Future Home Purchase - After clearing the credit card and auto loan debts, the individual will still need time to save for a home, especially considering the typical requirement of a 20% down payment [7]