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TurboTax / Tax Calculators & Tips / All Tax Guides / Self-Employment Taxes / Video: Tax Tips for Car Sharing Drivers: Uber, Lyft & Others

Video: Tax Tips for Car Sharing Drivers: Uber, Lyft & Others

Updated for Tax Year 2015


OVERVIEW

With the rise of the new sharing economy, many drivers are participating in ride sharing services with companies like Uber and Lyft. Here's a short video you can watch to make sure you're getting all of the tax benefits of being an Uber or Lyft driver.


Hello, I’m Adrienne from TurboTax with some helpful tax tips for drivers who work for companies like Uber or Lyft.

Tip number one: File taxes as a self-employed person.

Pending laws may change this, but until then, file taxes as if you are self-employed and use Schedule C to report your income and expenses.

Tip number two: Set aside a portion of your income to pay taxes, since they’re not taken out of your paycheck.

Tip three: Deduct your business expenses. The biggest deduction will likely be the cost of your car. If you use the car only for ride-sharing, you can take one hundred percent of the total miles driven or actual expenses incurred as deductions.

Tip four: You can also deduct other expenses like snacks you offer to passengers, tolls, maps, and more. You can even deduct the cost of your phone bill if you use it for business.

Tip five: Keep meticulous records, including mileage logs and receipts. The IRS will not allow deductions without documentation to back it up. Be sure to note for each expense the date, time, amount, and business nature.

For more tips and information that can help you get your taxes done smarter, visit TurboTax.com.

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The above article is intended to provide generalized financial information designed to educate a broad segment of the public; it does not give personalized tax, investment, legal, or other business and professional advice. Before taking any action, you should always seek the assistance of a professional who knows your particular situation for advice on taxes, your investments, the law, or any other business and professional matters that affect you and/or your business.


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