Last Updated: October 14, 2025
Uber and Uber Eats offer flexible ways to earn money, but understanding Uber tax deductions is key to keeping more of your hard-earned cash. As an independent contractor, you’re responsible for your own taxes. This means accurately tracking income and, more importantly, all your deductible business expenses. Doing so can significantly reduce your tax bill and boost your actual take-home pay.
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Contractor Taxation for Uber and Uber Eats Drivers in the U.S.
In the United States, Uber and Uber Eats drivers are treated as independent contractors, not employees. This classification affects how they report income and pay taxes. Gig Drivers are responsible for tracking their earnings, paying self-employment taxes, and filing their own returns.
1099 Income for Uber Drivers
Uber does not issue W-2 forms to its drivers. Instead, it provides Form 1099-NEC and sometimes Form 1099-K, depending on the driver’s total earnings and payment type.
- Form 1099-NEC: Reports income from incentives, referrals, or other direct payments made by Uber.
- Form 1099-K: Reports payments processed through the Uber platform from passengers or customers.
Both forms are sent to the driver and the IRS. Even if you earn less than the 1099 threshold, you’re still required to report all income.
Self-Employment and Income Taxes
Because Uber and Uber Eats drivers are self-employed, they must pay both income tax and self-employment tax. The self-employment tax is 15.3%, which covers contributions to:
- Social Security (12.4%)
- Medicare (2.9%)
Quarterly Estimated Tax Payments
Since Uber does not withhold taxes from driver earnings, drivers are expected to make quarterly estimated tax payments to the IRS. These payments are typically due in:
| Quarter | Period Covered | Due Date |
|---|---|---|
| 1st | January 1 – March 31 | April 15 |
| 2nd | April 1 – May 31 | June 17 |
| 3rd | June 1 – August 31 | September 16 |
| 4th | September 1 – December 31 | January 15 (following year) |
Knowing these basics helps you handle your Uber driver taxes. Keep good records, preferably everything in one place, so you will have everything at hand when you need to prepare reports for tax deduction.
Uber and Uber Eats Driver Deductible Business Expenses
Independent contractors can lower their taxable income by claiming business deductions. Common deductions for Uber and Uber Eats drivers include:
- Vehicle mileage or actual car expenses
- Gas, maintenance, and repairs
- Tolls and parking fees
- Phone and data plans used for driving
- Accessories like phone mounts, chargers, and cleaning supplies
Accurate recordkeeping and a compliant mileage log are essential to maximize deductions and stay IRS-compliant.
Tax Forms to File
At the end of the year, Uber drivers typically file the following tax forms:
- Form 1040 – Individual Income Tax Return
- Schedule C – Profit or Loss from Business
- Schedule SE – Self-Employment Tax
Uber also provides a Tax Summary that outlines total earnings, fees, and potential deductible expenses. This summary, along with the 1099 forms, helps drivers file accurate and complete tax returns.
Vehicle-Related Deductions: A Major Tax Saver
For rideshare drivers, vehicle expenses are often the biggest tax deduction. These deductions can cover gas, oil, repairs, maintenance, depreciation, insurance, and other car-related costs—significantly reducing taxable income.
Methods: Standard Mileage Rate vs. Actual Expenses
Standard mileage rate: For 2025, the IRS rate is $0.70 per business mile. It’s simple and already factors in fuel, maintenance, insurance, and depreciation. Business miles include trips to pick up passengers, deliver food, drive between hotspots, refuel, service the vehicle, or buy supplies.
Actual expense method: May yield a larger deduction if your car costs are high. Deduct the business-use portion of actual costs (gas, oil, insurance, repairs, maintenance, tires, registration fees, and depreciation). Requires detailed records and receipts.
Good to Know
- Personal and commuting miles are not deductible. Keep business, personal, and commuting miles separate.
- Parking and tolls are not included in either method; claim them separately as business expenses.
Keeping accurate mileage logs and receipts ensures you can prove your deductions and avoid IRS issues later.
| Standard Mileage Rate Method | Actual Expense Method | |
| Simplicity | Easier to track | Requires detailed record-keeping for every expense |
| Recordkeeping | Miles driven for business | All receipts for vehicle expenses, plus business use % |
| Potential Savings | Often higher for most drivers | Can be higher for high-cost vehicles or intense business use |
MileageWise: Your Partner in Maximizing Uber Tax Deductions
Now, you know how crucial accurate mileage tracking is for your Uber tax deductions. This isn’t just about being compliant; it’s about claiming every mile and being audit-proof.
That’s where MileageWise comes in. We specifically design our solutions to help self-employed professionals, including Uber and Uber Eats drivers, simplify their tax preparation and maximize their tax write-offs. A dedicated mileage tracker app is essential even if Uber tracks your trips. This is because they only track online miles, but you can deduct all the above-mentioned business miles.
MileageWise caters to Uber drivers with two distinct needs:
Mobile App for Mileage Tracking
- Automatic Trip Detection: Logs every ride and delivery run automatically.
- Quick Setup: Start tracking in minutes so you can focus on driving and earning, not setup screens.
- Ad-Free & Private: No pop-ups or data sharing. Just smooth, reliable tracking every day.
- Backup Mileage Capture: Accurately detects your trip start and end points, even if the Uber app misses them.
- Flexible Route Options: Choose between exact route tracking or optimized distance calculations.
- Navigation Integration: Access Waze from the MileageWise app: quick logging and navigation.
- Expense Sync: Track all of your vehicle expenses right beside your mileage — all in one place for easy tax prep.
Dashboard for Backtracking Mileage
- Google Timeline Import: Bring in your past Uber or Uber Eats drives from Google Maps Timeline. Perfect for rebuilding missed days or even years.
- AI Mileage Rebuilder: Automatically recreates forgotten drives based on fractured data and your preferences. Even if your Timeline is missing.
- IRS Compliance Check: Built-in auditor reviews your logs and identifies potential red flags before tax season hits.
- Bulk Trip Editing: Merge, categorize, or label multiple rides at once to save time.
- Export Ready Reports: Download clean, IRS-compliant mileage logs anytime — ready to send to your accountant or tax software.
MileageWise is also unique in offering Lifetime Plans, providing long-term savings without recurring fees. Plus, you get Outstanding Support from a dedicated customer service team and extensive resources.
Try MileageWise for free for 14 days. No credit card required!
Automatic Mileage Tracker App
AI Logs & Google Timeline Import
Customer Story: An Uber Driver’s Wake-Up Call About Missing Miles
I’ve been an Uber driver for a few years, juggling both rides and deliveries through Uber Eats. For the longest time, I assumed the apps tracked all my deductible miles. When I filed my taxes, though, my mileage deductions seemed way too low compared to my peers.
That’s when a friend, also an Uber driver, explained that Uber only tracks “online” miles — the time spent on active trips. I was missing all the drives that still count as business use: getting gas, driving to busy areas, or going for maintenance. Those add up fast, and I was leaving money on the table.
He suggested I try MileageWise, and it changed everything. The mileage tracker app automatically tracks every mile I drive for work, not just the ones Uber records. Now, I have a complete log on my phone and peace of mind knowing I’m not losing a single mile.
Final Steps to Tax Confidence
As an Uber or Uber Eats driver, mastering your Uber tax deductions is essential for financial success. Take these actionable steps:
- Diligently Track All Miles: Use a reliable mileage tracking app like MileageWise.
- Keep Records of All Expenses: Don’t throw away any receipts, no matter how small.
- Separate Personal from Business: Maintain clear boundaries for all expenses and mileage.
- Understand Your Forms: Familiarize yourself with Forms 1099-K, 1099-NEC, and Schedule C.
- Consider Estimated Taxes: Plan to pay your quarterly estimated taxes to avoid penalties.
- Seek Professional Advice: When in doubt, consult a tax professional.
By following these steps, you can significantly reduce your tax burden, keep more of your earnings, and gain peace of mind knowing your finances are in order.
FAQ
If I don’t file your Uber Eats Earnings for taxes what will happen?
If you don’t file your Uber earnings for taxes, the IRS may impose penalties, interest on unpaid taxes, and potentially audit your financial records. Since Uber reports your earnings via Form 1099, the IRS will be aware of your income. The migh even disallow your Uber Eats tax deductions
How to file taxes when you do Uber as a secondary job?
When doing Uber as a secondary job, file your taxes by reporting your Uber earnings using Form 1099-NEC (provided by Uber if you earn $600 or more). You’ll need to fill out a Schedule C to report income and expenses and pay self-employment taxes via Schedule SE. Keep track of deductions like mileage and expenses to reduce your taxable income.
Can Uber drivers still claim car loan interest even if using the standard deduction?
No, rideshare drivers cannot claim car loan interest if they use the standard mileage deduction. The standard deduction already includes expenses like loan interest, fuel, maintenance, and depreciation, so itemizing those separately is not allowed.
What do I need to be an Uber driver?
To become an Uber driver, several requirements must be met. You generally need to be at least 21 years old, have an in-state driver’s licence, at least one year of licensed driving experience in the USA (3 years if you are under 25 years old), and pass a background check.
| MileageWise | Other Mileage Tracker Apps | Other GPS Based Trackers | Excel | Tax Professional | |
| Mobile App for Ongoing Tracking | |||||
| Web Dashboard to Manage Trips | |||||
| Imports Trips and Locations from Google Timeline | |||||
| Lifetime Deals Available | |||||
| Average Reported Business Mileage Deduction | $12,000 | $710-$8500 | $400-$5,700 | $200-$2,000 | |
| Average Time Creating Retrospective Mileage Log (Yearly) | 7 minutes | 180 minutes | 180 minutes | 180 minutes | N/A |
| AI Wizard Mileage Log Generator for Retroactive Mileage Recovery | |||||
| Produces IRS-Proof Mileage Logs | |||||
| Free Phone Support with Live Agent | |||||
| Mileage Log Preparation Service | |||||
| Data Accessible in the Cloud |
