The tax guide for rideshare & delivery drivers
For Uber, Lyft, DoorDash and every other platform that hands you a 1099 and withholds nothing. What to deduct, what the platforms do not tell you, and the payments the IRS expects before April.
What the platforms actually report
Your 1099-K shows the gross fares riders paid — before the platform took its cut. That is a bigger number than the one that reached your bank, and it is the number the IRS already has. Report the gross and deduct the platform fees, rather than reporting your payout and looking like you left income out.
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 deductions drivers miss
The business share of your phone bill, tolls and parking, passenger supplies, car washes, a rideshare insurance rider, mounts and dashcams. With one important caveat the guide spells out: if you take the standard mileage rate, gas and repairs 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.
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.