Guide to Uber Driver Taxes

As an Uber driver, you’re an independent contractor for tax purposes. Since Uber isn’t your employer, it doesn’t withhold taxes or provide a W-2 form. Instead, you’ll make quarterly estimated payments to cover your regular income taxes and self-employment taxes (2.9% for Medicare and 12.4% for Social Security). You’ll also receive 1099 forms to use for filing your tax return, which requires completing Schedule C (Form 1040) to report your income and expenses.

Overview of the tax return process

Let’s look at what’s involved with handling your Uber driver tax return.

Gather important tax documents

By January 31 of the following year, Uber will provide online access to the following tax documents through the “Tax Information” tab on your driver portal:

• Tax summary: This is an unofficial summary showing income earned from rides and miscellaneous sources through the platform, like referrals. It also includes helpful deduction information, including Uber-related mileage, tolls, platform fees, airport fees and booking fees.
• 1099-K: You’ll receive this official IRS document if your on-trip earnings reach a minimum threshold based on federal and state rules. At the national level, Uber is expected to send a 1099-K if you make at least $5,000 in 2024. However, a lower $600 earnings threshold is planned nationwide for the future, and some states already use this smaller amount. Note that the gross income reported on this document will include items like tolls and fees, which you can actually deduct on your return.
• 1099-NEC: Uber will send this official IRS document if certain miscellaneous payments, including referral bonuses and promotional income, reach $600 during the tax year.
• 1099-MISC: If your earnings included at least $600 in other miscellaneous payments, including legal settlements and prizes, you’ll receive this official IRS form.

Filling out tax forms

While you’ll fill out the same Form 1040 individual federal tax return as employees, you’ll need some special forms to report your Uber driver income, deductions and self-employment taxes. The tax documents from Uber and your expense records will help with this process.

You’ll include your gross earnings in Part I of Schedule C (Profit or Loss From Business) and then list eligible business expenses in Part II to get your business profit or loss on Line 31. This form also requires vehicle expense information in Part IV and details on miscellaneous expenses in Part V.

The IRS requires completing Schedule 1 (Additional Income and Adjustments to Income), where you’ll transfer your business profit or loss to Line 3. You then total your adjustments on Line 10 and transfer that amount to Line 8 of your Schedule 1040.

Additionally, you’ll complete Schedule SE (Self-Employment Tax) to determine the self-employment tax amount owed on your earnings. The amount on Line 13 of this schedule will go on Line 15 of your Schedule 1.

After you complete your self-employed tax return, you can file it electronically or send it to the IRS by mail. You won’t need to include copies of 1099 forms or other personal records.

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Potential tax deductions for Uber drivers

You can claim Uber tax deductions for the business portion of various expenses, including those associated with vehicle use. You must be careful to separate the portion of business use from personal use, which isn’t deductible, and keep accurate records.

Vehicle expenses

Vehicle expenses will likely be your most valuable deduction as an Uber driver. You can choose between the standard mileage rate and the actual expense method to claim them:

• Standard mileage rate: With this method, you won’t separately account for your car-related deductible expenses. Instead, you just deduct $0.67 for each eligible business mile driven in 2024. So, if you drove 4,000 miles for Uber, you would deduct $2,680 from your Uber earnings. 
• Actual expense method: If you opt for this more detailed option, you’ll deduct the business portion of each vehicle-related expense. So, if these vehicle expenses totaled $8,000 and you used the car 50% of the time for Uber, you could deduct $4,000. See our actual expense method guide to learn more.

To decide a vehicle expense deduction method, do the math to see which saves you more and then confirm you qualify based on the IRS rules. The standard mileage rate is often the easier and more profitable option for the average Uber driver, but the actual expense method may be better if you incur very high costs. Read our self-employed deductions guide to learn more.

Note that either method will still allow you to deduct the full amount of business-related tolls, airport fees and parking fees separately on your Schedule C.

Other expenses for Uber drivers

Here are some other potential Uber business expenses you might deduct:

• Mobile phone, accessories, data plan and necessary software
• Drinks, food and entertainment provided to riders
• Vehicle supplies, including emergency tool kits, dash cams, first aid kits, floor mats and portable battery packs
• Uber platform fees and commissions
• Qualifying health insurance premiums
• Pre-tax retirement plan contributions
• Necessary office supplies
• Home office space (only if you use an area exclusively and regularly for business)
• Business meals (50% deductible when traveling 100+ miles from your tax home, staying out of town overnight or recruiting drivers or clients)
• Business-related lodging (when traveling 100+ miles from home for a rider)

Any personal expenses aren’t deductible. Examples include your clothes, the personal portion of your cell phone expenses and everyday meals. Plus, parking tickets and fines aren’t deductible even if incurred while driving for Uber.

Important tax deadlines

The IRS requires meeting deadlines for filing your tax return and making estimated tax payments. Otherwise, you may pay interest and penalties.

Annual tax return deadline

The normal federal tax filing deadline falls on April 15 each year. However, it will fall on the next business day if the 15th occurs on a weekend or federal holiday. 

If you can’t file by that date, you can complete Form 4868 to get an automatic six-month extension until October 15 (or the following business day). This doesn’t extend your deadline for paying any taxes owed.

Quarterly tax installment dates

In most cases, you must make quarterly estimated tax payments if you expect your annual tax liability to be at least $1,000. There are some exceptions, such as if you’re a U.S. resident alien or citizen who didn’t owe taxes last year and filed a return for a standard 12-month tax year. 

Here are the usual quarterly tax payment deadlines:

• First quarter (January 1 to March 31): April 15
• Second quarter (April 1 to May 31): June 15
• Third quarter (June 1 to August 31): September 15
• Fourth quarter (September 1 to December 31): January 15 of the following year

These dates fall on the next business day if the 15th is a holiday or weekend.

You can use Form 1040-ES to determine your estimated payments, which you can make over the phone, online and by mail. Be careful since making late or insufficient quarterly tax payments can lead to IRS penalties when you file your return.

Potential tax penalties

If you don’t file your return or request an extension by the due date, the IRS can charge you a monthly 5% failure to file penalty (up to 25% of unpaid taxes). This will max out at $485 or 100% of taxes owed (whichever is smaller) once you’re 60 days late. 

Regardless of whether you file on time, the IRS will charge a failure to pay penalty of 0.5% monthly on any unpaid tax amount (up to 25% of unpaid taxes) and 8% interest. The IRS reduces the maximum failure to file penalty to 4.5% if both penalties apply.

Recordkeeping requirements for Uber drivers

Thoroughly document all your Uber driver expenses throughout the year so you can more easily deduct them on your return and have proof in case of an audit. The IRS recommends maintaining the documentation for at least three years.

While Uber provides mileage information on your tax summary, you should still keep a detailed daily mileage log to record the date, time, distance and description for each business-related trip. You can use a mileage tracking app to make this work easier.  

You should also keep receipts, invoices, card and bank statements, emails and other documents that prove individual business expenses. Additionally, have an expense log documenting these details:

• Business purpose of the expense
• Business versus personal portion
• Date of expense
• Amount of expense
• Other people involved (such as for business meals)
• Location (for meals and lodging)

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