Tax Guide for Uber Drivers: Reporting Your Income & Deductions

Are Uber drivers considered self-employed?

Yes, Uber drivers are self-employed. In your onboarding paperwork, you'll see the term "independent contractor" which means that the IRS counts you as a self-employed person.

You'll need to pay your own income taxes and Social Security/Medicare and may get a 1099 from Uber at the end of the year. (Unlike employees who get taxes taken out by an employer and receive a W-2.)

Being self-employed means you can deduct business expenses on your taxes, but you need to document them correctly.

Taxes Uber drivers need to pay

You'll need to pay:

• Self-employment tax (15.3%): This covers Social Security and Medicare. You pay your share and the share normally covered by an employer.
• Federal income tax (% depends on total income): Like everyone else, you'll need to pay a percentage of your earnings to the federal government.
• State and local income tax (% depends on income): Applies if you live in a state/city with income tax.

Since Uber doesn't take out taxes, you'll need to plan ahead and save a portion of your money to pay estimated taxes every quarter. These are also sometimes called quarterly taxes.

For federal income and self-employment tax the payments are due on:

• April 15
• June 15
• September 15
• January 15 (to cover income from Q4 of the previous year)

State deadlines for estimated taxes can differ, so make sure to check.

Tax documents for Uber drivers

You'll get a 1099 if you earned more than $600 per year with Uber. If you took on other side-gigs you may get multiple 1099s.

Even if you don't receive a 1099, you still need to report all your income.

Uber drivers who also work a full-time job will get a W-2 from an employer.

If you want to lower your tax bill with deductions, you'll also need records of business expenses you're claiming. This can include:

• Receipts or invoices
• Proof of purchase notes
• Business mileage logs (complete with dates, locations, and purpose for each drive)

Tax deductions for Uber drivers

Let's talk about tax deductions in a bit more detail. Here's a list of common business deductions Uber drivers can take:

• Mileage: Use a mileage app to record every trip with Uber
• Tolls and parking fees: These apply only if you pay for them while driving for Uber
• Cell phone bill: You can deduct the business use portion (using the Uber app to communicate with passengers, for navigation, etc)
• Vehicle maintenance and repairs costs: If you use the actual expenses method, you can deduct the business use percentage.

Make sure you have proof (receipts, mileage logs) for every business deduction you claim. Otherwise the IRS can deny or make you pay back the deduction.

Where to report Uber mileage for tax deductions

You'll fill out Uber mileage under "vehicle expenses" on Schedule C, line 9. After that be sure to fill out Part IV with additional vehicle information.

If you used more than one vehicle for Uber or other gig work, you'll need to attach additional pages with the form filled out for each one.