Guide to Uber Driver Taxes

Uber Driver Taxes: A Complete Guide to Filing in 2025

Taxes for Uber drivers can feel daunting, but understanding what you owe and what you can deduct is crucial for compliance and maximizing your savings. This guide will clarify the tax responsibilities for both full-time and part-time Uber drivers.

1. Do Uber Drivers Pay Taxes?

Absolutely! As an Uber driver, you are classified as an independent contractor rather than an employee. This means you must report your income and pay taxes on your earnings. Since Uber does not withhold taxes from your payments, it's important to budget for them.

2. Key Tax Forms for Uber Drivers 

Uber provides the following tax forms based on your earnings:

• Form 1099-NEC: Issued when you earn $600 or more in non-employee compensation.
• Form 1099-K: This form summarizes third-party payment transactions involving credit cards and other network payments, provided the reporting thresholds are met.
• Uber Tax Summary: This document details your gross income, fees, and deductions.

You can find these reports in your Uber driver app under the "Tax Information" tab.

3. Reporting Your Income

You need to report:

• Gross Income: This is the total amount you received before Uber deducts its service fee.
• Other Earnings: This includes bonuses, incentives, and referral payments.

Keep in mind that even if you didn't receive a 1099 form but earned income, you are still required to report it.

4. Understanding Deductions

Tax deductions can significantly reduce your taxable income, saving you a considerable amount of money. Here are the most common deductions for Uber drivers:

Vehicle-Related Deductions

1. Standard Mileage Deduction:

• For 2023, the standard rate is 65.5 cents per mile driven for business purposes, effective from January to June, and remains at 65.5 cents for July to December.
• Be sure to maintain a detailed mileage log to claim this deduction.

2. Actual Expense Method:

• This includes expenses like gas, maintenance, insurance, registration, and depreciation.

Other Deductible Expenses

• Tolls and Parking: Expenses incurred while driving are deductible.
• Car Cleaning: Costs for regular cleaning and detailing of your vehicle can be claimed.
• Phone and Data Plan: You can claim a portion of your phone and data bill that relates to your Uber driving.
• Uber Fees: This includes service fees, booking fees, and commissions taken by Uber.

5. Estimated Taxes

As an independent contractor, you may need to pay estimated quarterly taxes to avoid penalties. These estimated taxes include:

• Self-Employment Tax: This covers Social Security and Medicare taxes (15.3%).
• Federal and State Income Taxes: These are based on your total income and tax bracket.

You will file these using IRS Form 1040-ES.

6. Tips for Filing Uber Taxes

• Track Your Expenses: Use apps or spreadsheets to keep a record of all your business-related expenses and mileage.
• Save Your Receipts: Retain receipts for gas, maintenance, and other expenses.
• Separate Personal and Business Finances: It may be helpful to have a separate bank account for your Uber earnings and expenses.

7. Filing Taxes with Your Uber 1099

Your 1099 forms contain all the information you need to file:

• Income (1099-NEC and 1099-K): Report this on Schedule C (Profit or Loss from Business).
• Expenses: Use Schedule C to deduct expenses and calculate your net income.
• Self-Employment Tax: Calculate this using Schedule SE (Self-Employment Tax).

8. Should You Use Tax Software or Hire a Professional?

While tax software can simplify the filing process, hiring a professional to prepare your taxes ensures that you claim all eligible deductions. If you're uncertain about what you can claim or how to report your income, a professional can be extremely helpful.

9. Penalties for Non-Compliance

Not filing or paying your taxes can result in fines, penalties, and interest charges. It's best to file your taxes accurately and on time to avoid these issues.

Simplify Your Taxes with WBB Gig Taxes 

Filing taxes shouldn't be a hassle. At WBB Gig Taxes, we focus on helping Uber drivers maximize their deductions and increase their refunds. You can start filing your taxes for as little as $99. File from anywhere using your mobile device and benefit from unlimited support from our tax professionals.