23 Tax Write-Offs for Lyft and Uber Drivers
NAICS business codeYour NAICS business code is a six-digit string of numbers that shows the type of work your business does. NAICS stands for North American Industry Classification System. When you do your taxes, you'll enter it in Box B of your Schedule C.485300
Reviewed bySabrina Wiechart, CPASabrina is a Certified Public Accountant (CPA) with over 15 years of experience in tax preparation, planning, and S-Corp compliance. She holds a Master’s in Accounting and specializes in helping self-employed individuals make smart tax decisions. Sabrina is passionate about simplifying the S-Corp process and making sure every client keeps more of what they earn.Many people turn to rideshare driving as a flexible way to earn money on their own schedule — whether full-time or as a part-time gig. But life on the open road can become less appealing when faced with the task of filing 1099 taxes.
Here at Keeper, we're hoping to make tax season a smoother ride by listing a bunch of the write-offs that can help Uber and Lyft drivers save a significant amount of money on their taxes.
There are, of course, many car-related deductions you can claim, like the cost of gas or depreciation. But other things count too, like the cost of a music service subscription or refreshments you keep in your car for riders!
You can write off any phone chargers and other accessories for passengers to use in the car.
Any work-related apps, including for navigation and taxes (like Keeper!) can be written off.
Snacks and bottled drinks that you offer to passengers are tax-deductible.
Spotify, Apple Music, Pandora, Sirius XM, and other subscriptions used to entertain passengers are write-offs.
Only the business-use portion counts. A personal account you also listen to off the clock doesn't fully qualify — a subscription used purely for customers is a cleaner claim.
Car cleaning services to keep your vehicle looking nice and presentable are deductible.
Write off items like seat covers and floor mats that keep your car clean when passengers ride.
Your phone, its monthly bill, and accessories are all partially deductible, in proportion to business use. The phone itself is depreciated on Box 13 (or expensed under Section 179); the monthly bill belongs on Box 27b, and accessories on Box 22.
Standard personal auto policies exclude rideshare driving. The extra cost of adding that coverage is deductible under the actual expense method.
Charging an electric vehicle you drive for work is deductible under the actual expense method. The standard mileage rate already covers it.
The cut a staffing or gig app takes from your pay — plus any membership or matching fee — is deductible.
Fees to renew your license to perform your work are fully deductible.
If you drive for work ...
Some rideshare companies will supply drivers with company-owned vehicles. If you drive a company car, feel free to write off all the gas and upkeep you pay for out of pocket.
If you drive your own car to pick up passengers — and for other work-related tasks like getting your car cleaned, inspected, or repaired — you can claim even more car expenses on your taxes, including vehicle depreciation.
Parking for a meeting downtown, or any other work trip, is tax-deductible!
A toll while driving to or from a work destination is tax-deductible!
If you buy a new car, you can write off part of the cost every year for five years.
Flashlights, tire iron, duct tape, and other tools you may need in your vehicle are deductible.
Car insurance monthly fees, registration, even roadside assistance are partially deductible — if you use the actual expense method. The standard mileage rate already covers them.
Oil changes, repairs, and regular checkups are deductible if you use the actual expense method. Take the standard mileage rate instead and they're already baked into your per-mile deduction.
If you discuss work at a restaurant ...
As a rideshare driver, you can write off a restaurant expense if the reason you're there is to chat about work with a fellow driver or potential client.
If you discuss work with a coworker, mentor, client, or prospective client, it's a write-off — 50% of the tab.
If you leave town for work ...
If you drive a passenger to an out-of-town destination far enough from your tax home that you need to stop for sleep or rest before heading back, you can claim associated trip costs — like booking a hotel to sleep in before heading back into town. This also applies if you travel to, say, SXSW specifically to drive for Uber or Lyft.
Planes, trains, and car rentals are all work-related travel costs that can be written off.
When you travel for work, lodging expenses such as hotel rooms or Airbnb are write-offs.
When you're traveling for work, your meals are 50% deductible — takeout included. (Long-haul truck drivers subject to DOT hours-of-service rules can deduct 80%.)
If you work from home ...
As a rideshare driver, most of your work likely happens on the road. So being able to claim home office expenses is relatively unusual.
Still, some drivers build up their own brands outside of Lyft, Uber, and other gig apps — sourcing passengers and maintaining independent businesses from home. If you do any marketing or business development work of that nature, you can claim some of your home office expenses.
A desk, chairs, lamps, and other home office necessities are all tax write-offs. Anything over about $2,500 gets depreciated on Form 4562 instead of written off all at once.
Repairs just for your home office are 100% deductible. Repairs to the rest of your home count too, prorated by your business-use percentage on Form 8829.
Gotta keep the lights on in your home office! A portion of your electricity bill counts.
Whether it's rental or homeowners insurance, you can write off a portion through your home office deduction.
It'd be hard to work in an office without running water, huh? Your water bill counts.
You need internet to do your job! If you claim a home office, deduct it prorated on Form 8829 along with your other utilities. Internet you pay for on the road, purely for work, is 100% deductible.
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