Lyft Tax Guide (Updated for 2025)

If you drive for Lyft, tax season might feel overwhelming, but it doesn’t have to be. As an independent contractor, you’re responsible for filing your own taxes, but you also get access to valuable deductions that can lower your tax bill.

In this guide, we’ll walk you through everything you need to know about filing taxes as a Lyft driver:

✅ The tax forms you’ll need
✅ How to maximize your tax write-offs
✅ Whether you owe quarterly estimated taxes
✅ If your tips are taxable income

Let’s dive in!

Step 1: Gather Your Lyft 1099 Tax Forms

Before you start filing, make sure you have all the necessary tax documents. Here’s what you’ll need:

• Form 1040, U.S. Individual Income Tax Return or Form 1040-SR, U.S. Tax Return for Seniors
• Schedule SE (Form 1040), Self-Employment Tax
• Schedule C (Form 1040), Profit or Loss from Business (Sole Proprietorship)

You’ll report income through the standard tax return, Form 1040. You’ll use Schedule C to list your income and expenses (and expenses = write-offs!).  Plus, there may be additional state and local tax forms you’ll need as well, check with your tax service or professional.

Forms from Lyft

You should receive your income information from Lyft. This may come in the form of:

• A 1099-K form: You’ll receive this from Lyft if you earned more than $20,000 in on-trip transactions and provided over 200 rides. Learn more here. 
• A 1099-NEC: You’ll receive this from Lyft if you received at least $600 in non-rider payments (e.g., referrals, on-trip promotions). Note: Certain states have implemented lower reporting thresholds. Learn more here. 

Important: Even if you don’t receive a 1099 form, you’re still required to report your earnings. You can find your total income and tax summary in the Lyft driver dashboard.

Step 2: Maximize Your Lyft Tax Deductions

Passenger Fees

Lyft provides a tax summary that should show the total amount passengers paid for fees, like tolls, book fees, etc.—these are business expenses deductions to list on your Schedule C and deduct. 

Mileage

You can write-off miles you drove waiting for a trip, en-route to a rider, and on a trip.  However, it’s crucial to keep careful and detailed records of off-trip mileage ( a mileage tracker for Lyft drivers like Everlance makes this easy and automatic!).

There are two ways to calculate your mileage deduction: 

• Actual Expense Method: you calculate and deduct the actual expenses of operating your car. These expenses include gas, oil, insurance, registration, repais, lease payments, or maintenance. For more information on the Actual Expense Method, visit the IRS’s guide. 
• Standard IRS Mileage Deduction: This is the easiest method and can result in a higher deduction. To use this method, multiply your total business miles by the IRS Standard Mileage Rate for business. In 2024, this would look like: 10,000 work miles x $0.67 mileage rate = $6,700 deduction. 

Pro Tip

Do you use the same car for work and personal transportation? If so, then you’re required to keep detailed and accurate records that separate these uses. If you don’t have mileage logs, receipts, or other documentation, the IRS may disallow any business expenses you list. That’s why a mileage tracker is so important (Everlance is the #1 mileage and expense tracker, and it makes mileage logs easy and automatic!). 

Smartphone

You are required to have a smartphone in order to do rideshare or delivery—so certain phone costs count as business expenses! Expenses that are deductible can include:

• Smartphone cost
• Essential phone accessories (e.g., chargers, mounts, etc.)
• Carrier billing charges for work use

Pro Tip

Do you use the same phone for work and personal? If so, then you’re required to keep detailed and accurate records that separate these uses. Many Lyft drivers end up buying a new phone that is only used for their business. Then, this business phone’s costs are deductible. 

Other common deductions

Many costs associated with ridesharing and delivery can qualify as a write-off. In addition to work mileage and phone costs, other common deductions include:

• In-car supplies: bottled water and snacks for customers; floor mats; car tool kit; first aid kit; flashlights and flares; tire inflator and pressure gage; 
• Driving fees: city and airport fees; freeway, highway, and bridge tolls; business taxes and licenses 
• Roadside assistance plans
• Office supplies

Remember, Everlance doesn’t offer tax advice. Please refer to your tax professional or service for more information about your specific deductions. 

Step 3: Lyft Quarterly Taxes

Since you’re an independent contractor, you might be responsible for estimated quarterly taxes—especially if Lyft is your sole source of income. 

Make sure to pay estimated taxes on time. Each quarter, you're expected to pay taxes for that quarter's payment period. Here are the 2025 due dates:

For more information, visit our Quarterly Taxes Guide.

Step 4: File Your Lyft Taxes

Once you’ve gathered your 1099 forms, deductions, and quarterly tax payments, you’re ready to file. You can:

📝 File yourself – File directly with the IRS on paper, the old school way
💼 Hire a professional – A tax accountant can help you maximize deductions
🚀 Use software, like Everlance – Use tax filing software online to file your taxes for you, Everlance automatically track your mileage, expenses, and deductions and allows you to file right within the app.

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If you found this guide helpful, share it with your fellow Lyft drivers! Our goal is to make Lyft driver tax prep easy and straightforward.

Other resources to check out:

Gig Economy Tax Center

We recommend that you seek guidance from independent tax professional for information about your specific tax situation.  If you’d like to learn more, the IRS website has information about the 1099-K, 1099-NEC, and 1099-MISC.