What you need to know about taxes as an Uber driver

If you drove for Uber in 2025, you will owe taxes on the income you earned, and the IRS expects you to report it whether or not Uber sends you a tax form. Uber does not withhold taxes from your payments the way a traditional employer does, so you are responsible for setting aside money and reporting what you made. The forms you need depend on how much you earned and whether you had other income, but most Uber drivers file using Schedule C (the self-employment income form) and Schedule SE (the self-employment tax form).

You will also need to track your mileage and expenses throughout the year — the IRS allows you to deduct either your actual expenses or a standard mileage rate, whichever is larger. Many drivers find the standard mileage rate simpler because you only need to track miles driven for Uber work, not receipts for gas and repairs. For 2025 tax returns, the standard mileage rate for business use is set by the IRS each year, so check the current rate before you file.

Key Takeaways

  • Uber does not withhold taxes from your payments, so you must report all income on Schedule C even if you earned less than $600.
  • You can deduct either actual vehicle expenses (gas, repairs, insurance) or the IRS standard mileage rate, but you must choose one method and stick with it.
  • If you earned $400 or more from Uber, you will owe self-employment tax on Schedule SE in addition to income tax.
  • Uber will send you a 1099-NEC form if you earned $600 or more, but you must report all income regardless of whether you receive a form.
  • Keeping a mileage log and saving receipts throughout the year makes filing much faster and reduces the chance of errors.

Understanding the forms Uber drivers file

Schedule C (Profit or Loss from Business) is where you report all income from Uber and subtract your business expenses. You list your gross income (the total Uber paid you), then subtract deductible expenses like mileage, vehicle insurance, phone service, and tolls. The result is your net profit, which is the amount subject to income tax.

Schedule SE (Self-Employment Tax) calculates how much Social Security and Medicare tax you owe. Because you are self-employed, you pay both the employee and employer portions of these taxes — roughly 15.3% of your net profit from Uber. This is separate from income tax and is required if your net profit is $400 or more.

If Uber was your only income source and you earned less than the standard deduction for your filing status, you may not owe income tax, but you will still owe self-employment tax if you earned $400 or more. If you had other jobs or income, you report those on separate schedules and combine everything on your Form 1040.

Tracking income and the 1099-NEC form

Uber sends you a Form 1099-NEC (Nonemployee Compensation) if you earned $600 or more during the year. This form shows the total amount Uber paid you and is sent to both you and the IRS. However, you must report all Uber income on your tax return even if you earned less than $600 and did not receive a 1099-NEC — the IRS expects you to track and report every dollar.

You can find your total earnings in the Uber app under "Earnings" or "Account," where you can view your year-to-date total. If you drove for multiple platforms (Lyft, DoorDash, etc.), each one sends a separate 1099-NEC if the threshold is met, and you report each on its own line on Schedule C.

The 1099-NEC you receive shows gross earnings before Uber's commission and fees are deducted. This is the correct figure to report on your tax return — you do not subtract Uber's commission before reporting, because that is already reflected in the amount Uber paid you.

Calculating deductible mileage and vehicle expenses

The standard mileage rate is the simplest way to deduct vehicle costs. You multiply the number of miles you drove for Uber by the IRS rate for that year. This rate changes annually and covers gas, wear and tear, depreciation, and maintenance. You only need to track the miles you drove while actively working for Uber — not your commute to a pickup location or personal driving.

If you prefer to deduct actual expenses, you track every receipt: gas, oil changes, repairs, insurance, registration, and depreciation. This method requires more record-keeping but can result in a larger deduction if you have significant repair costs or a newer vehicle. You cannot switch between methods year to year without IRS permission, so choose the one that makes sense for your situation and stay with it.

Many drivers use a mileage log app (like MileIQ, Stride Health, or Everlance) to automatically track miles based on GPS. If you keep a manual log, write down the date, starting and ending odometer readings, miles driven, and the business purpose. The IRS accepts either method, but a contemporaneous log (one you keep during the year, not reconstructed later) is stronger evidence if you are audited.

Other deductible expenses for Uber drivers

Beyond mileage, you can deduct expenses directly tied to your Uber work. Phone and internet used for the Uber app are deductible, though you typically deduct only the percentage used for business (for example, if 50% of your phone use is Uber work, you deduct 50% of your bill). Tolls and parking fees incurred while driving for Uber are fully deductible. Vehicle insurance that covers commercial rideshare use is deductible, though the portion covering personal driving is not.

You cannot deduct the cost of the vehicle itself (that is depreciation, which is built into the standard mileage rate), but if you use actual expenses, you do deduct depreciation separately. Uber's commission and fees are not deductible because they are already subtracted from the income you report. Meals, entertainment, and vehicle cleaning are generally not deductible unless they are directly tied to a specific business purpose.

Keep receipts for all expenses you claim. If you use the standard mileage rate, you do not need receipts for mileage itself, but you should still keep your mileage log. For actual expenses, save gas receipts, repair invoices, insurance statements, and registration documents.

Estimated tax payments and quarterly filing

If you expect to owe $1,000 or more in taxes for the year, the IRS may require you to make estimated quarterly tax payments throughout the year rather than paying everything when you file. These payments are due on April 15, June 15, September 15, and January 15 of the following year. If you do not make these payments and owe a large amount at tax time, you may face a penalty.

To calculate estimated payments, you estimate your total net profit for the year, multiply it by your expected tax rate (roughly 30% when you combine income tax and self-employment tax, though this varies by income level and state), and divide by four. If your income is uneven throughout the year, you can adjust payments quarterly based on actual earnings.

Many Uber drivers set aside 25% to 30% of each payment they receive to cover taxes, which ensures they have enough when the bill comes due. This is simpler than calculating quarterly payments and works well if your income is steady.

Filing your return and common mistakes to avoid

You file your Uber income on your Form 1040 along with Schedule C and Schedule SE. If you use tax software (TurboTax, H&R Block, TaxAct), the software walks you through entering your income and expenses, calculates your deductions, and generates the correct forms. If you work with a tax preparer, bring your 1099-NEC, mileage log, and expense receipts.

A common mistake is forgetting to report income under $600 because no 1099-NEC was sent. The IRS has records of all Uber payments and will catch unreported income. Another mistake is deducting personal vehicle expenses or commuting mileage — only miles driven while actively working for Uber count. Some drivers also fail to claim self-employment tax, which is required even if you owe no income tax.

If you drove for Uber part of the year and had another job, make sure you report both on the same return. If you had significant expenses, double-check that you are using the method (standard mileage or actual expenses) that gives you the larger deduction. File by April 15 to avoid penalties and interest on any taxes owed.

Frequently Asked Questions

Do I have to file taxes if I only made a few hundred dollars driving for Uber?

Yes. Even if you earned less than $600 and did not receive a 1099-NEC, you must report all Uber income on your tax return. If your total income is below the standard deduction for your filing status, you may not owe income tax, but you still owe self-employment tax if you earned $400 or more.

Can I deduct my car payment or lease?

No. Car payments and lease payments are not deductible. If you use the standard mileage rate, depreciation is built in. If you use actual expenses, you deduct depreciation separately, but not the payment itself. You can deduct insurance, gas, repairs, and maintenance.

What if I drove for Uber and Lyft in the same year?

Report each platform separately on Schedule C. Lyft will send its own 1099-NEC if you earned $600 or more. You can use the same mileage log for both platforms (total miles driven for rideshare work), but list each company's income and expenses separately on your return.

Do I need to keep my mileage log if I use the standard mileage rate?

Yes. The IRS requires a contemporaneous mileage log showing the dates, miles, and business purpose of your trips. You do not need receipts for the mileage itself, but you must have a log to support your deduction if audited.

What happens if I do not report my Uber income?

The IRS receives a copy of your 1099-NEC and will notice if you do not report it. Unreported income can result in penalties, interest, and potential audit. It is much simpler to report the income when you file than to deal with the IRS later.