Rideshare Drivers

Learn about the tax responsibilities and deductions available to rideshare drivers working with companies like Uber or Lyft. This guide covers the classification of rideshare drivers as independent contractors, the requirement to file Schedule C, and how to manage self-employment taxes. It also provides detailed information on deductible expenses, including car expenses, office supplies, and service fees, helping drivers optimize their tax returns.

Highlights:

• Independent Contractor Status: Rideshare drivers are considered self-employed and must handle their tax obligations, including federal, state, and FICA taxes.

• Key Tax Forms: Includes the use of Schedule C for reporting income and expenses, and Schedule SE for calculating self-employment tax.

• Income Reporting: Requirements for reporting income, including the use of Forms 1099-NEC and 1099-K.

• Deductible Expenses: Covers car expenses (standard mileage rate or actual expenses), office supplies, service fees, and other business-related costs.

• Recordkeeping: Importance of keeping detailed records of income, expenses, and business mileage to support deductions.