Complete Uber Driver Tax Deductions List (2025 Update)

As an Uber driver, you're essentially running your own business, which means you can deduct legitimate business expenses from your taxable income. Here's everything you need to know about maximizing your tax deductions in 2025.

Vehicle Expenses - Your Biggest Deduction

Standard Mileage Method (Recommended)

For 2025, the IRS standard mileage rate is 67 cents per mile. This method is usually simpler and often results in larger deductions for most drivers.

Actual Expense Method

If you choose this method, you can deduct the business percentage of:

• Gas and oil
• Repairs and maintenance
• Tires
• Insurance
• Registration and licensing fees
• Depreciation

Essential Business Expenses

Phone and Data Plans

• Monthly phone bill (business percentage)
• Data plan costs
• Phone accessories (car mounts, chargers)

Car Cleaning and Maintenance

• Car washes (inside and out)
• Detailing services
• Air fresheners
• Floor mats and seat covers

Safety and Security

• Dash cameras
• Phone holders and mounts
• Emergency kits
• First aid supplies

Home Office Deduction

If you use part of your home exclusively for business activities like:

• Tracking expenses
• Reviewing trip data
• Customer service communications

You may qualify for the home office deduction.

Record Keeping is Critical

Apps to Track Mileage

• MileIQ
• Stride
• QuickBooks Self-Employed
• Uber's own trip data (export regularly)

What to Track Daily

• Start and end mileage
• Business vs. personal miles
• All receipts for vehicle expenses
• Time spent driving

Advanced Deductions Many Drivers Miss

Parking and Tolls

• Airport pickup fees
• Parking at events or high-demand areas
• Toll road fees during business use

Professional Development

• Tax preparation software
• Business license fees
• Driver safety courses

Marketing Your Services

• Business cards
• Signs for your vehicle
• Promotional materials

Tax Forms You'll Need

• 1099-NEC or 1099-K from Uber
• Schedule C (Business Income/Loss)
• Schedule SE (Self-Employment Tax)
• Form 1040 (Individual Tax Return)

Quarterly Tax Planning

Since Uber doesn't withhold taxes, you're responsible for paying quarterly estimated taxes if you expect to owe $1,000 or more.

Common Mistakes to Avoid

1. Not tracking mileage from day one
2. Mixing personal and business expenses
3. Failing to keep receipts
4. Not understanding the business use percentage
5. Missing quarterly tax payments

Potential Tax Savings Example

Getting Professional Help

Consider hiring a tax professional who specializes in gig work if:

• Your annual Uber income exceeds $30,000
• You drive for multiple platforms
• You have significant other income sources
• You're unsure about any deductions

The cost of professional tax preparation is itself a business deduction!

Final Thoughts

Proper tax planning and record keeping throughout the year is essential. Start tracking everything now, and you'll be amazed at how much you can legally deduct as a business expense.