So you drive for Uber or Lyft… maybe both. Tax time rolls around, and suddenly you’re staring at a pile of receipts, wondering what actually matters. Here’s a quick, jargon-free article that will help you learn what’s important.
TL;DR: As a rideshare driver, you’re self-employed. That means Schedule C, tracking deductions, and quarterly taxes. If you earned enough, you also need to file 1099s.
What Makes Rideshare Filing Different?
You’re not an employee; you’re an independent contractor. That means the IRS treats you like a business owner. You report earnings on Schedule C and pay self-employment tax (about 15.3% for Social Security and Medicare).
The upside? Business deductions. Gas, phone use, car maintenance, even snacks for passengers… it all counts. And you’re not alone. As of 2025, over 36% of U.S. workers are in the gig economy, and the IRS is watching. They’ve even set up a Gig Economy Tax Center to help.
Do Uber and Lyft Send a 1099?
Yes. You’ll likely get a 1099-NEC for bonuses and incentives over $600. As for ride income, 1099-K rules keep shifting. Because of the One Big Beautiful Bill, the IRS reverted to a $20,000/200-transaction threshold for 2025, so many drivers won’t get one. But you’re still required to report all income, even if you don’t get a form.
Both companies also offer an annual summary – use it! It shows gross earnings, fees, and mileage.
What Can You Deduct?
Most drivers use the standard mileage deduction – 67 cents per mile for 2024, bumped to 70 cents in 2025. That usually beats tracking gas and maintenance manually.
Other deductions:
- Uber/Lyft fees and commissions
- Phone bills (work portion)
- Tolls, parking, car washes
- Snacks or water for riders
- Roadside assistance memberships
Track your miles and save receipts. If you’re earning tips, note that a new law allows up to $25,000 in tip income to be deducted for eligible gig workers from 2025 through 2028. One note is that the deduction phases out for those earning over $150,000 ($300,000 for joint filers).
Using software like Xero can also help you reconcile expenses, categorize transactions, and keep everything organized for tax time.
Do You Need to Pay Quarterly Taxes?
Probably. If you expect to owe more than $1,000 for the year, the IRS wants quarterly payments (April, June, September, January). Set aside 25–30% of net income to be safe. If you also have a W-2 job, you might adjust your withholding there to cover rideshare taxes.
Should You Use an Accountant?
Yes – especially if you drive full-time or juggle multiple gigs. The financial piece of the gig economy can be a headache to manage yourself! An accountant can:
- Help you catch every deduction
- Calculate quarterly payments
- Prepare a clean Schedule C
- Keep you audit-proof and stress-free
How JBS Corp Can Help
We specialize in taxes for gig workers across the U.S. Whether you’re driving full-time or part-time, we’ll help you file accurately, claim all your deductions, and stay ahead of IRS rules.
Bottom line? Filing as a rideshare driver isn’t something to wing. JBS Corp makes it easy, jargon-free, and judgment-free. Ready to get your taxes sorted? Reach out today.
