The 2024 Uber Driver’s Guide to Tax Preparation

Welcome to the ever-evolving world of taxes for Uber drivers in 2024! With the gig economy booming, it's more important than ever to understand your tax responsibilities and how to maximize your returns. Whether you're driving full-time or just as a side hustle, let’s navigate through the tax prep process for Uber drivers, step-by-step. 

We'll cover:
What forms you need
How to find your deductions
Quarterly Estimated Taxes
and some various FAQs we hear from Uber drivers!

Step 1: Collect and fill out relevant tax forms

There are various forms you’ll need to file your taxes. Let’s get organized!

Filing forms

To file taxes as an Uber Driver (a.k.a. An independent contractor), you’ll need to fill out the following forms:

• 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 Uber

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

• A 1099-K form—you’ll receive this from Uber 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 Uber 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. 
  

Note: You’re still required to report your rideshare and delivery income to the IRS even if you don’t receive a 1099. 

Step 2: Calculate your write-offs/tax deductions 

Passenger Fees

Uber 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 (an app for mileage tracking 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 2023, this would look like: 10,000 work miles x $0.655 mileage rate = $6,550 deduction. (In 2024, the IRS increased the standard business mileage rate to 67 cents per mile)
  

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 best mileage tracker for Uber drivers, 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 Uber 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.  

Do you owe quarterly taxes?

Since you’re an independent contractor, you might be responsible for estimated quarterly taxes—especially if Uber 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 due dates for 2024:

1st Quarter:

• Payment period: January 1 – March 31
• Tax payment is due April 15, 2024

2nd Quarter:

• Payment period: April 1 – May 31
• Tax payment is due June 17, 2024

3rd Quarter:

• Payment period: June 1 – August 31
• Tax payment is due September 16, 2024

4th Quarter:

• Payment period: September 1 – December 31
• Tax payment is due Jan. 15, 2025

For more information, visit our Quarterly Taxes Guide.

When it comes to taxes, is there a difference between driving for Uber and Uber Eats?

Nope! The tax process is the same for delivery and rideshare independent contractors. 
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What about tips?

Your tips are part of your gross earnings total and are taxable income. Talk to your tax professional or service for more specific answers regarding your specific tax situation.

Making Tax Season a Breeze with Everlance

Everlance is here to make tax prep seamless for Uber drivers. Our app not only tracks every mile but also helps categorize and record your expenses, ensuring you’re maximizing your deductions. Say goodbye to the hassle of manual logs and hello to streamlined tax filing!

Disclaimer: This guide is for informational purposes. For personalized advice, consult a tax professional.

Other Helpful Resources:

• IRS Website: Information on 1099 forms.
• Everlance Blog: More tips and insights for gig economy workers.

Remember, understanding and managing your taxes efficiently is crucial to maximizing your earnings as an Uber driver. With tools like Everlance and up-to-date knowledge, you’re set for a successful tax season!