Tax Tips8 min read

Tax Guide for Rideshare Drivers: Uber, Lyft, and Beyond

Everything rideshare drivers need to know about taxes, from deductible expenses to filing requirements and common mistakes.

SM

Sarah Mitchell

Tax Specialist · July 25, 2024

Rideshare Driver Tax Essentials

Driving for Uber, Lyft, or other rideshare platforms makes you self-employed. Here's what you need to know about taxes.

Understanding Your Tax Status

As a rideshare driver, you're an independent contractor:

  • Receive 1099 forms, not W-2s
  • Responsible for self-employment tax
  • Must make quarterly estimated payments
  • Can deduct business expenses
  • Key Tax Forms

    From Rideshare Companies:

  • 1099-K: Gross payments over $600
  • 1099-NEC: Other income (bonuses, referrals)
  • You'll File:

  • Schedule C: Business income/expenses
  • Schedule SE: Self-employment tax
  • Form 1040: Individual tax return
  • Deductible Expenses

    Vehicle Expenses (Choose One Method):

    Standard Mileage

  • 67 cents per mile (2024)
  • Track all business miles
  • Simpler record keeping
  • Actual Expenses

  • Gas, maintenance, repairs
  • Insurance, registration
  • Depreciation
  • Calculate business use percentage
  • Other Deductions:

  • Phone and data plan (business %)
  • Phone mounts and chargers
  • Water and snacks for passengers
  • Car washes
  • Parking and tolls
  • Mileage Tracking is Critical

    Track these miles:

  • Driving to pick up passengers
  • Driving passengers to destinations
  • Driving between rides
  • NOT commuting to start driving
  • Common Mistakes

  • Not tracking miles from day one
  • Missing the quarterly tax deadlines
  • Forgetting to deduct phone expenses
  • Not separating personal and business
  • Maximizing Your Deductions

  • Log every mile, every trip
  • Keep receipts for all expenses
  • Use a dedicated business account
  • Track waiting time locations
  • GigTracker's automatic mileage tracking makes tax time simple for rideshare drivers.

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