Tax deductions for Uber & Lyft drivers
The tax write-offs Uber and Lyft drivers miss, what your 1099 does and does not show, and the payments the IRS expects before April — on one free checklist. Also useful for DoorDash and other delivery apps that withhold nothing.
Your Uber or Lyft 1099 — and when you will not get one
Under federal rules Uber and Lyft send a 1099-K only when your trip payments pass $20,000 in more than 200 transactions (a few states set lower amounts), plus a 1099-NEC for bonuses and referrals. Most drivers get no 1099-K, and the income is reportable all the same — the annual tax summary in your driver account has the figures. When a 1099-K does come, it shows the gross fares riders paid, before the platform took its cut: report that and deduct the fees, rather than reporting your payout.
Mileage is usually the biggest deduction
Miles between fares and driving to a pickup generally count, not just the on-trip miles the platform reports — so its summary usually understates you. The catch is substantiation: a log kept as you drive holds up, a reconstruction afterwards is the weakest position you can take.
The tax write-offs Uber and Lyft drivers miss
The platform service fees taken from your fares, the business share of your phone bill, tolls and parking, passenger supplies, car washes, mounts and dashcams. With one important caveat the guide spells out: if you take the standard mileage rate, gas, repairs and insurance — including a rideshare insurance rider — are already inside it and must not be claimed again.
Nobody withholds for you
Driving income carries self-employment tax of 15.3% on net profit, on top of income tax, and the IRS expects it in quarterly instalments rather than once in April. Skipping those payments can bring a penalty even when you pay the full amount on time.
Records that hold up
A separate account for driving money, the mileage log, the annual tax summary from every platform you drove for, and receipts for anything claimed outside the mileage rate. The burden of proving a deduction is yours.
Uber and Lyft driver taxes: common questions
- What can Uber and Lyft drivers deduct?
- Business miles — at the standard mileage rate or as actual car costs split by business use — plus the platform service fees taken from your fares, the business share of your phone, tolls and parking while working, passenger supplies, car washes and equipment such as a phone mount or dashcam. If you use the standard mileage rate, gas, repairs and insurance are already inside it, so they are not deducted again.
- Do I have to report Uber or Lyft income if I do not get a 1099-K?
- Yes. A platform has to send a 1099-K only when payments pass $20,000 in more than 200 transactions, so many drivers never get one, but the IRS requires you to report all of the income whether or not a 1099-K arrives. Use the annual tax summary from Uber or Lyft for the figures.
- Where do I find my Uber or Lyft 1099?
- Uber posts its tax documents by January 31 on drivers.uber.com and in the Driver app under Account, then Tax Info. Lyft posts them by January 31 in the Tax Center tab of your Lyft Dashboard, where every driver with earnings also gets an Annual Summary even without a 1099.
- Is it better to deduct mileage or gas?
- You choose one method for the car, not both: the standard mileage rate for each business mile, or the actual costs of running the car (gas, repairs, insurance, depreciation) divided by business use. Which is larger depends on your car and how far you drive, so compare both. If you own the car, using actual costs in its first year of business use can rule out the standard rate for that car later.
- Do Uber and Lyft drivers pay taxes quarterly?
- Usually. Nothing is withheld from your pay, so you generally need to make estimated payments with Form 1040-ES if you expect to owe $1,000 or more when you file, and net profit from driving also carries 15.3% self-employment tax. Paying too little during the year can bring a penalty even if you pay in full in April.
Delivering for DoorDash? Read the DoorDash taxes guide.
Educational information about self-employment tax for drivers generally. It is not tax advice for your situation, and figures such as the standard mileage rate change annually — take them from the IRS guidance for the year you are filing, or ask us.