What tax deductions can Uber and Lyft drivers claim in 2025?

As an Uber or Lyft driver, you are considered self-employed and report your income and expenses on Schedule C (Form 1040). You will receive a 1099-K from the platform if you earned $600 or more.

Key deductions for rideshare drivers:

• Mileage: The biggest deduction for most drivers. For 2024, the IRS standard mileage rate is 67 cents per mile for business use. Track every mile from when you turn on the app to when you turn it off, including miles driven while waiting for a ride request. Apps like Everlance or Stride can automate tracking.
• Phone and data plan: The business-use percentage of your phone bill is deductible. If you use your phone 60% for driving, you can deduct 60% of the cost.
• Platform fees and commissions: Uber and Lyft service fees are deductible business expenses.
• Car washes, floor mats, phone mounts: Supplies used for your driving business.
• Snacks and water for passengers: If you provide these amenities, they are deductible.
• Parking and tolls: Tolls paid during rides and parking fees are fully deductible.

Important: Standard mileage vs. actual expenses. You must choose one method for the tax year. Standard mileage is simpler and often better for newer cars. Actual expenses (gas, insurance, repairs, depreciation) can be better for expensive vehicles or high-expense situations. You cannot switch from actual expenses to standard mileage on a leased vehicle.

Self-employment tax: You owe 15.3% SE tax (12.4% Social Security + 2.9% Medicare) on net profit. Make quarterly estimated payments (Form 1040-ES) to avoid penalties. Deduct the employer-equivalent half (7.65%) on line 15 of Schedule 1.