Can you write off expenses for Uber?

Work-related travel is indeed deductible, including ridesharing. Our Raleigh accountants at C.E. Thorn, CPA, PLLC recommend keeping a detailed log of any work-related travel you utilize– whether it's ridesharing services, meal expenses, the cost of professional development training, or something else.



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Absolutely! When it comes to rideshare services, your car is your most valuable asset. The IRS knows this, which is why every Uber driver can claim mileage on taxes to account for wear and tear over time. The best part is you can deduct total miles driven, not just the duration of a passenger's trip.

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For 2022, if you receive more than $20,000 and 200 transactions for ride payments during the tax year, Uber is required to send Form 1099-K to you and the IRS. This threshold is reduced to $600 without regard to the number of transactions beginning in 2023.

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If you are an Uber driver, you are self-employed, and thus must make estimated tax payments on a quarterly basis. If you work it just right, you won't have to pay any additional tax at year end when you file your 1040, nor will you have a big refund. That's the best situation.

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The IRS often audits Uber drivers, just as they audit other small businesses. If you work full time and lose money, what are you living on? Why do you do it? The obvious suspicion is that you are under reporting income or overstating expenses.

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If an expense also benefits you personally, only the portion attributed to your business is deductible. For example, you may have a cell phone that you use for driving about 25 percent of the time. In that case, you can deduct 25 percent of the phone bill as a tax deduction.

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Your Uber purchase is split into 4 interest-free payments over 6 weeks.

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You Must Report All Income, Even Under $600 Anything above $0 for reporting income. Be sure to track expenses, report all income, make estimated tax payments, and stay compliant with IRS requirements. Don't avoid paying taxes just because you didn't earn much with Uber.

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You'll be paid for the additional time spent at each stop Uber pays you while you wait for your passenger to pick up a friend or to run a quick errand at the supermarket.

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After you've been waiting for a rider for 2 minutes, a fee will be charged to them for the time you continue to wait. After you've been waiting for 5 minutes, you can choose to cancel the trip or continue to wait. A cancellation fee will still only be charged after you've waited for at least 5 minutes.

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A portion of your gas station fill ups are tax-deductible. Oil changes, repairs, and regular checkups are all tax-deductible if you drive for work. Car insurance, roadside assistance, registration costs, etc. are all tax-deductible.

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