Tax deductions for Uber drivers

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.
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