As an Uber driver, you are considered an independent contractor. That means you are self-employed. As such, you may be able to write off a number of ordinary and necessary work-related expenses.
The IRS describes an ordinary expense as one that is common and accepted in your trade or business, and a necessary expense as one that is helpful and appropriate for your business.
On its website, Uber lists the following potentially deductible expenses:
- Vehicle costs like depreciation, lease payments, gas, tune-ups, registration, car washes, new tires, etc.
- Car insurance
- Tolls or parking costs
- Your phone and phone plan
- Uber fees
- Freebies for riders, like water or candy
- Accounting and bank costs
Keep in mind these expenses may only be deductible, if at all, to the extent that you incurred them while working.
As an independent contractor, you may receive a 1099-K from the companies for whom you worked. You would report that income and associated expenses on your Schedule C. Add all lines 1 of forms 1099-K, subtracting and refunds and adjustments (like chargebacks ) you never received. Enter this amount on the “Merchant card and third party network payments” line.