Tax Deductions for Rideshare drivers

As a rideshare driver, you're an independent contractor and can claim the below tax deductions.

Mileage you can deduct

On-trip and between passengers
All miles driven while 'online' with your ridesharing service are deductible. This includes the miles driven between passenger pickups.
On the way to first passenger
As a rideshare driver, all miles driven in search of your first passenger, and the miles driven from your last passenger back home, are tax deductible.
Work-related errands
Driving to the grocery store to buy passenger goodies, on your way to a car wash, to an information session at an Uber greenlight hub, or other work-related errands are tax deductible.

Expenses you can deduct

Car Cleaning
As a rideshare driver, writing off your car mats, cleaning supplies and cleaning services, including car washes, is totally legit. Keeping your car spiffy clean is part of providing the best service to your customers!
Passenger Goodies
As a rideshare driver, you can deduct the complimentary goodies that you offer your passengers like bottled waters, mints, and Halloween candy.
Phone & Service
If you have to use a phone for work, you can deduct the percentage of the purchase price and monthly service bill that reflect your work usage!
Food & Drink
You can deduct a portion of your meal cost from a restaurant if you are out of town for work purposes. Discussing work with an existing or prospective client? That counts too!
Any toll fees that you pay while working are tax deductible! Just make sure they're not already being reimbursed.
If you have to pay for parking while you're working, that's tax deductible. Unfortunately, parking tickets, traffic violations, and speeding tickets are not.
Phone Accessories
Phone accessories that help you do your job as an independent driver, like car chargers, cables, and phone holders, are all tax deductible.
Software Subscriptions
If you pay a monthly fee for a software subscription that helps you do your job, that's deductible!
Music & Paid Apps
If you pay for a music service like Spotify or Apple Music to entertain passengers while working, your monthly subscription fee is tax deductible.
Vehicle inspections and background checks that are required for work are deductible. These keep your business compliant and your passengers safe!
Roadside Assistance
Staying safe on the road is part of the job. A percentage of the fees for AAA or other roadside assistance programs are tax deductible based on the percentage of miles you drive for work.
As a rideshare driver, you might find yourself in some sticky situations. Dashcams that are used as a security precaution are deductible.
Health Insurance
If you're self-employed and don't have the option to buy health insurance through an employer or spouse, you can deduct your monthly health insurance payments!
If you purchase supplies that are needed to run your business, those expenses are deductible! Just make sure these purchases would be considered typical for your industry.
Personal Protective Equipment
Hand sanitizer, gloves, face masks, and other safety items are essential right now for anyone actively working in the face of the COVID-19 pandemic.
Any expense that doesn't fit the other categories we've set up for you. Please make sure to add a note to keep track of them!

Other expenses you can deduct


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Non-Deductible Expenses

Clothing that can be reasonably worn outside of your work environment is considered a personal hygeine expense and is explicitly deemed a non-deductible expense.
A haircut is considered a personal hygiene expense and is explicitly deemed a non-deductible expense for independent workers.
Life Insurance
You can't deduct the cost of premiums for life insurance where you are the beneficiary. This includes taking policies out to secure a loan for your business, or to fund a succession plan.
Parking Fines and Tickets
Misconduct isn't part of your job! Fees for legal violations, such as parking tickets or court fees, are not tax deductible.
If you have a permanent office from which you conduct your business then the miles driven between your home and that office are considered commuting and are not tax deductible.
Dry Cleaning
Dry cleaning is considered a personal hygiene expense and is therefore explicitly deemed a non-deductible. Unless you're cleaning a uniform, the expense is considered personal.

Non-Deductible Expenses if You Take the Standard Mileage Deduction

Gas is part of maintaining a vehicle for business and is deductible only if you choose not to take the standard mileage rate.
Oil Change
An oil change is standard car maintenance and is deductible only if you choose not to take the standard mileage rate.
Car Insurance
Car insurance is required for all car owners and thus is deductible only if you choose not to take the standard mileage rate.
Car Repairs
All cars will eventually need a repair. Repairs are deductible only if you choose not to take the standard mileage rate.
Car Lease Payments
If you are leasing a car, you can deduct the lease payments only if you choose not to take the standard mileage rate.
Car Depreciation
Car depreciation is deductible only if you choose not to take the standard mileage rate.

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