If you are a self-employed driver, whether you drive a yellow cab, Uber, Via, or Lyft, you must report your income on Schedule C. You may receive Form 1099-NEC, Non-Employee Compensation or Form 1099-K reporting income to be reported on your Schedule C.

In 2026, the vast majority of taxi and private hire drivers worldwide are classified as self-employed independent contractors. This means they are responsible for their own taxes, National Insurance, vehicle maintenance, and fuel. In the UK, for instance, drivers typically file a Self Assessment tax return and, as of April 2026, must comply with "Making Tax Digital" (MTD) rules, requiring them to keep digital records of all fares. However, the legal landscape is shifting; in some jurisdictions, court rulings have forced companies like Uber to grant drivers "worker" status, which provides some benefits like holiday pay and a minimum wage while still allowing them to remain technically self-employed for tax purposes. For a passenger, this "independent" status means the driver is essentially running their own small business, which is why tipping is often viewed as a vital direct contribution to their livelihood rather than just a "bonus" for the company.