There are many ways to maximize your Uber and Lyft profits and one of the most important is through your tax deductions. When it comes to rideshare taxes things can get a little complicated. Fully understanding what expenses you can deduct can save you thousands.
I created this list of 25 rideshare tax deductions for Uber and Lyft drivers so you can make the most of your deductions and save as much money as possible.
Before we get into the specific tax deductions, lets begin with what you need to know about your taxes and how to file them.
Rideshare Tax Forms: 1099-K and 1099-Misc
Unlike the traditional workforce, Uber and Lyft drivers file their taxes as self-employment income and will receive 1099s tax forms from Uber and Lyft. Rideshare drivers will pay their taxes via 1099-K for their driving services and 1099-Misc for other payments such as referral fees, incentives bonuses, etc.
On the Uber and Lyft website you will be provided with up to three forms.
Under Tax Information, you will find your 1099-K, 1099-Misc, and a yearly summary.
Uber’s 1099-K and 1099-Misc
will be provided if you earned at least $20,000 in gross payments and provided at least 200 trips. If you do not meet both of these criteria, you will not receive a 1099-K.
will be provided if you received at least $600 in non-rider payments such as referrals and on-trip promotions/incentives.