Driving Uber & Lyft Tax Preparation

As a driver, you’ll likely pay income tax on your gross earnings. However, there are several deductions and exclusions that may reduce or eliminate those taxes. If you drive for Uber or Lyft and make more than $600 in a month, then the IRS considers your entire income as taxable.

The first step to calculating how much money makes sense for you is figuring out what expenses apply to your situation: gas (if applicable), maintenance costs for the car (oil changes/tires), insurance premiums–these all need to be factored into how much money comes in from driving with Uber or Lyft each month before determining if they’re worth it after all!

Depreciation is a tax deduction, and it can be used to reduce your taxable income. The amount of depreciation you claim is deducted from the value of your vehicle on the day you sell it (or trade-in).

When looking at depreciation, remember that it’s not a deduction against income–it’s a deduction against the value of an asset. If you own an asset like a car or truck with equity value in it, then depreciation will help offset its cost over time so that when you finally sell it for cash again (or trade it in for something else), there’s less money left on top after everything has been paid off. If you don’t own any equity in your vehicle (like if someone gave them to you as payment), then there won’t be any depreciation because there isn’t anything left to depreciate!

If you’re an Uber or Lyft driver, the IRS has a special form for you. The IRS Form 1040-TC is available to drivers who are classified as “totally self-employed” and have no employees.

If this sounds like you, then filing your taxes as a rideshare driver can be a little more complicated than simply signing up at TurboTax or H&R Block and hitting “File Taxes.” If you don’t mind doing some research on how to file your taxes as a rideshare driver, then take this article with all of its links as an outline of what’s involved in filing taxes with Uber or Lyft – especially if they’re not paying out their share of income tax (which they should).

As an Uber and Lyft driver, you will need to file your taxes with the IRS. This is true whether you’re employed by an employer or doing contract work. You’ll also be responsible for reporting your income and expenses on Schedule C (Form 1040), which is part of Form 1040; or Schedule C-EZ (Form 1040A), which is part of Form 1040A.

You’ll pay tax on all income earned during this time period–including tips from customers who ride with you–as well as any deductions taken out of it before reporting it on your tax return.