Being an Uber or Lyft driver offers flexibility and independence, but understanding tax deductions for Uber and Lyft drivers is key to managing your taxes effectively. Since you’re considered self-employed, you need to handle tax preparation and bookkeeping differently than regular employees.The good news is that you can save money by taking advantage of tax deductions. In this blog, our Bronx tax services will guide you through understanding the basics of handling your taxes as an Uber or Lyft driver. We also show you which expenses you can deduct and explain how SCL Tax Services and our expert tax accountants in the Bronx can help simplify the process for you.
As an Uber or Lyft driver, you’re in charge of your own finances. This means you need to:
This might sound overwhelming, but it doesn’t have to be. SCL Tax Services provides expert tax accounting and tax preparation to help Bronx drivers like you. Stay with us until the end of this guide for tips that will make managing your taxes easier and less stressful.
Understanding tax deductions for Uber and Lyft drivers is essential. You can deduct a variety of expenses to lower your taxable income:
Your car is your biggest business tool, so many of the costs associated with driving can be deducted.
You have two options:
Deduct $0.70 per mile driven for work
(2025 rate).
You may be able to write off costs like gas, maintenance, tolls, parking, and insurance.
It’s crucial to keep detailed records of your mileage and receipts to ensure you claim the correct deduction. There are apps you can use to make tracking easier.
Since you rely on your smartphone for navigation, taking rides, and communicating with passengers, a portion of your phone and internet bills can be written off.
Do you provide bottled water, gum, or phone chargers for your riders? These small extras improve your service and are fully deductible. Keep all your receipts for these purchases.
To take full advantage of tax deductions, you must keep accurate records. The IRS requires proof of your expenses, so good record-keeping helps you avoid issues and ensures you don’t miss out on deductions.
Here’s how to stay organized:
Track every mile you drive for Uber or Lyft with a mileage app or notebook. Accurate records can help you claim valuable deductions and maximize your tax savings.
Keep both digital and physical copies of receipts for expenses like fuel, maintenance, tolls, and parking. Organized receipts ensure you don’t miss out on important deductions.
Open a separate bank account for your Uber or Lyft income and expenses. This makes it easier to track business spending and simplifies tax filing.
Take a few minutes each week to check your income and expenses. Staying on top of your finances will make the challenge of dealing with taxes much smoother.
If this feels like too much to handle, consider hiring SCL Tax Services for their expert bookkeeping services.
Filing taxes as a self-employed driver can be confusing. Mistakes can lead to missed deductions or even penalties. That’s why many drivers choose to work with tax professionals.
Here’s how a skilled tax accountant can help:
Professional support is also helpful when dealing with business taxes, quarterly payments, and complex tax rules.
Let us take care of your taxes so you can focus on delivering excellent service to your passengers and growing your income. At SCL Tax Services, we provide expert tax preparation and support for drivers just like you. With tailored guidance based on your situation and needs, our tax accountants simplify your taxes, maximize deductions, and save you money. We are also experienced in managing business taxes and helping you to stay organized. We’re here to support you every step of the way. Reach out and ask for our top-notch tax services in and near the Bronx!By scheduling a tax consultation, you can ensure a professional is explaining the details and assisting you to keep more of your hard-earned income and feel confident about your finances. Together, we’ll turn tax time into an opportunity to save and succeed!
Generally, yes, if you use them for your rideshare activities. You can deduct a reasonable portion of your phone and internet bill that’s related to work. Keep records or bills to support your deduction.
Yes. The cost of cleaning your car (such as car washes) and offering your passengers complimentary items (bottled water, phone chargers, etc.) is usually deductible because they’re considered ordinary and necessary business expenses.
Many drivers use mileage-tracking apps or keep a written log. The key is consistency, so record every business-related trip right away to ensure you don’t forget or estimate incorrectly.
It depends on your situation. The standard mileage rate simplifies record-keeping, but if your actual expenses are high (e.g., significant maintenance costs, tolls, or insurance), you might save more by deducting actual expenses. Consult with our tax professionals to see which option is best.
We are here to relieve you of the tax pressure by offering a wide range of Tax Services In & Near Bronx, NY. If you need expert advice or need us to complete your taxes, we will provide it for you. We know you work hard, so we work hard to serve your needs.
Your time is valuable, which is why we are here for you.