Lyft Driver Taxes: Your 1099 Forms, Deductions, and How to File

Whether Lyft is your full-time job or a nights-and-weekends gig, the IRS treats you as a small business owner. That means no taxes taken out of your pay, a few forms to sort through at tax time, and write-offs that can shrink what you owe.

Here's what Lyft sends you, how to report it, what you can deduct, and how much to set aside.

What tax documents does Lyft send drivers?

Lyft gives you up to three documents each year. Two are IRS forms. The third is Lyft's Annual Summary, which isn't an official tax form but is the easiest place to find your numbers.

Lyft adds your documents to the Tax Center in your Driver Dashboard by January 31 and emails you when they're ready.

If you also drive for Uber or another app, you'll get separate forms from each one. Add them all up on the same Schedule C.

Where to find Lyft's tax ID (EIN)

Lyft's taxpayer ID number is printed in the payer's TIN box on any 1099 it sends you, along with its address. If your tax software asks you to enter your 1099-K or 1099-NEC, copy the payer details from the form. You don't need Lyft's EIN for anything else on your return.

What if you don't get a 1099?

You still have to report your Lyft income. All of it is taxable, whether or not you get a form. If you were under the 1099-K threshold, use your Annual Summary and your bank deposits to add up your income.

Got a B notice from Lyft?

If the name and taxpayer ID number you gave Lyft don't match IRS records, Lyft has to send you a B notice asking you to correct them. Follow the instructions on the notice and send Lyft your correct information right away. If the mismatch isn't fixed, Lyft has to start backup withholding, sending 24% of your pay straight to the IRS.

Why your 1099-K is higher than what you got paid

The amount in Box 1a of your 1099-K is the gross amount passengers paid. Before Lyft pays you, it subtracts its fees, so the deposits in your bank account add up to less than your 1099-K total.

You don't pay tax on money Lyft kept. Deduct Lyft's fees as a business expense on Schedule C, and you're taxed on what you actually earned.

What taxes do Lyft drivers pay?

You'll pay two kinds of tax on your driving profit (your earnings minus your business expenses):

• Income tax. Federal rates run from 10% to 37%, depending on your total income. Most states have an income tax too.

• Self-employment tax. This is Social Security and Medicare for people who work for themselves. It's 15.3% on 92.35% of your net profit. The 12.4% Social Security part stops once your combined wages and self-employment earnings reach $184,500 in 2026. The 2.9% Medicare part has no cap.

Employees split Social Security and Medicare with their employer. As a driver, you pay both halves. If Lyft is a side gig, you only pay self-employment tax on your driving profit. Your day job's paycheck works the same as always. You can also deduct half of your self-employment tax, and most drivers qualify for the qualified business income deduction, which lets you deduct up to 20% of your net profit.

You have to file a tax return if your net self-employment earnings are $400 or more. That's a much lower bar than the 1099 thresholds.

Want to know how much you'll owe? Enter your Lyft earnings and expenses in our 1099 tax calculator to estimate your income tax and self-employment tax together.

Example: from your 1099-K to what you owe

Say you drove for Lyft in 2026 and your numbers looked like this:

You'd also owe income tax on that profit, depending on your other income and deductions.

How to report your Lyft income

Your Annual Summary is the easiest place to start, since it has your earnings in one place. Then fill out Schedule C (Profit or Loss From Business):

1. Line 1: Your gross receipts. Add your ride earnings (your 1099-K, or your Annual Summary if you didn't get one) and your bonus earnings (your 1099-NEC).

2. Line 10: Lyft's fees and commissions.

3. Lines 9 and 18–27: Your other business expenses, like your car, phone, and supplies.

4. Line 31: Your net profit, which is your income minus your expenses.

Your net profit then goes on Schedule 1 of your Form 1040, and on Schedule SE to figure your self-employment tax. For a step-by-step walkthrough, see how to fill out Schedule C.

How to write off your car

For most drivers, the car is the biggest write-off. You can deduct it one of two ways.

Standard mileage method

You multiply your business miles by the IRS rate:

• 72.5 cents per mile from January 1 to June 30, 2026

• 76 cents per mile from July 1 to December 31, 2026

• 70 cents per mile for 2025

The rate already covers gas, insurance, repairs, and depreciation, so you can't deduct those separately. You can still deduct business parking and tolls, plus the business share of car loan interest.

Actual expenses method

You add up what your car really costs and deduct the business share. Your business-use percentage is your business miles divided by your total miles for the year. Costs you can include:

• ⛽ Gas and oil

• 🛡️ Insurance, including rideshare insurance

• 🔧 Repairs, maintenance, and tires

• 🏷️ Registration and fees

• 📉 Depreciation, or lease payments if you lease

Keep receipts for every cost. The Keeper app can find these in your bank and card transactions automatically.

Which method saves more?

For most Lyft drivers, standard mileage wins, because you drive a lot of miles and the rate is generous. Actual expenses can win if your car is expensive to own and run compared to how much you drive. Run your own numbers in our mileage deduction calculator, or read mileage vs. actual expenses for the details.

Your first-year choice matters. If you own the car and use actual expenses in its first year of business use, you can't switch that car to standard mileage later. If you lease, you have to keep the same method for the whole lease.

Track your miles

Either way, you need a record of your business miles. Your Annual Summary shows your online miles, which is a helpful starting point. Keep your own record too with our free mileage log template.

Other write-offs for Lyft drivers

These stack on top of either car method:

• 💵 Lyft's fees and commissions

• 🅿️ Parking and tolls while driving for work

• 📱 The business share of your phone and plan, plus accessories like a phone mount

• 🥤 Passenger supplies, like water, snacks, and phone chargers

• 🧽 Car washes and cleaning supplies

• 🩹 A first aid kit

• 🛣️ Roadside assistance plans, like AAA (the business share)

For more ideas, browse every write-off for rideshare drivers.

Things you use for work and personal life

For anything you use both ways, like your phone, you can only deduct the business share. If you use your phone for driving 70% of the time, you can deduct 70% of your phone bill. Something you buy only for driving, like a dashboard phone mount, is 100% deductible.

No tax on tips for Lyft drivers

From 2025 through 2028, workers in jobs that customarily receive tips can deduct up to $25,000 a year in qualified tips. Taxi and rideshare drivers are on the IRS list of qualifying jobs.

A few things to know:

• Tips must be voluntary. Tips passengers choose to give count. Automatic charges don't.

• The deduction is limited to your profit. If you're self-employed, you can't deduct more in tips than your net profit from driving.

• It only lowers income tax. You still owe self-employment tax on your tips.

• Know your tip total. Check your earnings history in the Lyft Driver Dashboard, and keep your own record as you go.

• Married? File jointly. Married couples have to file a joint return to claim it, and you need a valid Social Security number.

• Higher earners get less. The deduction phases out above $150,000 of modified adjusted gross income ($300,000 if married filing jointly).

Learn more about how taxes on tips work.

Do Lyft drivers need to pay quarterly estimated taxes?

Yes, if you expect to owe $1,000 or more for the year. You still file your tax return once a year. But because Lyft doesn't withhold taxes from your pay, the IRS expects you to pay as you go, with quarterly estimated tax payments.

The due dates for estimated payments are:

• April 15 for income from January through March

• June 15 for April and May

• September 15 for June through August

• January 15 of the next year for September through December

If a date lands on a weekend or holiday, it moves to the next business day.

If you pay too little or too late, the IRS charges an underpayment penalty, which works like interest on the amount you were short each quarter. You can avoid it by paying at least 90% of this year's tax, or 100% of last year's tax (110% if your adjusted gross income was over $150,000).

A simple habit: set aside 25% to 30% of your driving profit as you earn it. Our quarterly tax calculator estimates each payment for you. If you missed one, here's what happens when you miss a quarterly payment.

Drive for Uber too? See our Uber 1099 guide. The same rules apply, and you'll combine both on one Schedule C.