01 Aug Tax deductions for Uber drivers
When you work as a for Uber/Car Service Driver, you are classified as an independent contractor for tax purposes. This means you are running your own business as a sole proprietor.
Tax Deductions for Uber Drivers: Business Expenses
You can deduct any other Uber-related business expenses you incurred. These may include:
- Auto Expenses, using the Standard Mileage method or Actual Expense method.
- the cost of your iPhone or other cell phone. 100% deductible if you use it just for business, otherwise you can deduct the business use percentage
- Water, candies, gum and other items you provide your passengers
- Any extra insurance coverage you obtain for your business
- Fees and commissions Uber charges you. Don’t deduct any fees Uber takes directly from your pay and doesn’t include in the compensation listed on your 1099 form
- Home Office Deducitons
- Parking and tolls
- Interest on a car loan (if you use the car for personal and business use, the business use percentage is deductible on Schedule C) and
- PayPal and/or credit card transaction fees you pay.