Rideshare driving is a business, and the IRS treats it like one. The biggest lever is your mileage — and most drivers track it wrong.
As an Uber or Lyft driver you're an independent contractor, not an employee, so no taxes are withheld and you owe self-employment tax on your net profit. Your earnings show up on a 1099-NEC (incentives and referrals) and a 1099-K (passenger payments) — and the 1099-K reports the gross amount before the platform took its cut, so you must deduct those fees or you'll overpay.
The single biggest deduction is your vehicle. You can take the IRS standard mileage rate on every online mile (not just miles with a passenger) or deduct actual costs — we run both and use whichever saves you more.
Income you’ll report on: 1099-NEC, 1099-K.
Most people in this line of work leave money on the table. Here's what we make sure to capture:
It depends on your car and how much you drive. High-mileage drivers usually win with the standard mileage rate; drivers with an expensive vehicle and big repair bills sometimes do better deducting actual costs. We calculate both and use whichever lowers your tax.
Yes — all rideshare income is taxable whether or not Uber or Lyft sent a form. We report it correctly and offset it with your mileage and other deductions.
Tell us what you've got and we'll come back within one business day with the plan and the price · from a preparer who knows your line of work.
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