The Uber Rideshare Driver's Guide to Filing Taxes [2025]

Uber drivers can earn extra cash to supplement a part-time job or even replace a full-time salary working for Uber. 

However, rideshare drivers must navigate complicated income tax rules.

Rideshare drivers work as independent contractors who receive 1099 forms instead of W-2s during tax season. Rideshare companies don’t withhold income taxes on drivers’ wages. Unlike traditional employees, drivers must pay self-employment taxes in addition to federal income tax. 

As an Uber driver, you must file a personal income tax return if you earn at least $400 in self-employment income.

Fortunately, tax professionals can help simplify your income taxes. This article offers a step-by-step guide to filing your Uber income tax return in 2025.

How to File Your Uber Tax Return in 4 Steps

1. Determine Your Classification

Uber drivers generally represent independent contractors for federal tax purposes. The IRS considers rideshare drivers to be self-employed sole proprietors.

Independent contractors must report self-employment income on their personal income tax returns. The IRS provides separate schedules for taxpayers to report income from sole proprietorships. Rideshare drivers pay self-employment tax on all freelance income, which includes earnings from other services such as Lyft, DoorDash, or Uber Eats. 

We’ll explain the tax forms you need for your Uber tax return later.

Exceptions apply to rideshare business owners who establish corporate or partnership entities. The situation is uncommon for a rideshare driver, so check with a tax professional if you think an exception applies.

2. Organize Your Paperwork

After confirming your tax classification, gather your documents to support your income tax return.

Tax Information You Need

Rideshare drivers should receive Uber tax forms by the end of January 2025 to file tax year 2024 returns. Uber provides your tax information in your driver dashboard. Check your driver dashboard for the following:

• Annual tax summary: The annual tax summary reflects your yearly driving income, business miles, and related expenses.

• Monthly tax summary: The monthly tax summary represents a monthly breakdown of the annual tax summary.

• IRS Form 1099-K: Drivers who earned at least $5,000 in trip earnings during 2024 will receive a 1099-K summarizing Uber driving income. Form 1099-K summarizes payments from third-party merchant networks.

• IRS Form 1099-NEC: Drivers who earned at least $600 from Uber promotions or referrals during 2024 will receive a 1099-NEC. Form 1099-NEC summarizes annual non-employee compensation.

You should receive a separate Form 1099-K and 1099-NEC from each payer. If you work for other rideshare or food delivery services, collect 1099 forms from each company.

Additionally, compile tax documents from other income sources, including regular employment, freelance work, and investments. Your tax preparer will need all your paperwork to prepare an accurate return.

Bookkeeping for Uber Drivers

Maintaining timely and accurate bookkeeping helps you prepare your tax return, maximize your deductions, and lower your tax bill. 

We recommend regularly updating your Uber record-keeping with the following information:

• Driving earnings

• Income from Uber referrals and promotions

• Business expenses, including vehicle and transportation costs

• Mileage logs

Alternatively, you can outsource your bookkeeping to the professionals at 1-800Accountant and avoid time-consuming paperwork.

3. Understand Your Deductions

As a self-employed Uber driver, you can deduct several business expenses. Your Uber tax deductions lower your taxable business income and tax liability.

Uber Tax Deductions to Claim

Rideshare drivers can generally deduct the business-related portion of the following costs on their income tax returns:

• Location-specific permits, such as an airport pickup permit or TLC license (for New York City drivers)

• Vehicle expenses are calculated using one (not both) of the following methods:

  • Actual expenses, including Uber-related costs of vehicle repairs, gas, insurance, registration, and lease payments or depreciation

• Standard mileage deduction, representing 67 cents for each business mile driven in 2024

• Transportation costs, such as parking and tolls

• Professional services, such as tax preparation

• Business use of mobile phones, including internet and data

• Snacks and drinks for passengers

• Car cleaning services and supplies

• Subscriptions and service fees

You’ll report your expenses on your business tax return. Check with tax professionals for help finding and reporting additional Uber business tax deductions.

4. File Your Uber Income Tax Return

Finally, prepare and file your federal income tax return. This section explains the tax forms to submit and when to file.

Tax Forms for Uber Drivers

IRS Form 1040

Individual taxpayers file IRS Form 1040, U.S. Individual Income Tax Return. Form 1040 reports your taxable income and deductions from all sources, including W-2 wages, retirement or investment account returns, and small business income.

Prepare your Form 1040 and relevant schedules to calculate your federal taxable income. To determine your federal tax liability, use the tax tables in the Form 1040 instructions or refer to the IRS tax brackets for 2024.

IRS Form 1040, Schedule C

Uber drivers generally report rideshare earnings as self-employment income. As a rideshare driver, use Schedule C (Form 1040), Profit or Loss from Business (Sole Proprietorship), to report your independent contractor activities. Schedule C reflects your Uber driving income and expenses. The schedule calculates your net income from self-employment.

You may need to attach more than one Schedule C if you work multiple unrelated contractor positions.

IRS Form 1040, Schedule SE

Independent contractors must pay a 15.3% self-employment tax on their business income (in addition to federal income tax).

Self-employment tax represents 12.4% of Social Security and 2.9% of Medicare tax. Employers and employees split the burden, but freelancers pay the entire amount.

To determine your self-employment tax liability, use Schedule SE (Form 1040), Self-Employment Tax. Schedule SE uses your income from Schedule C to calculate the self-employment tax liability.

Freelancers can deduct half of their self-employment tax liability on their federal income tax returns.

IRS Form 1040-ES

Since Uber drivers represent independent contractors, Uber does not withhold income taxes on driver payouts.

However, the IRS requires taxpayers to remit income tax throughout the year (not just at return time). To avoid penalties, freelancers must submit quarterly estimated tax payments.

Use Form 1040-ES, Estimated Tax for Individuals, to estimate your income for the entire year and determine your quarterly tax liability. The form instructions include an estimated tax worksheet for self-employed business owners. 

The quarterly estimate process can be tricky, so we recommend consulting tax professionals for help with your estimated tax calculations.

When and How to File Form 1040

The tax year 2024 IRS Form 1040 is due on April 15th, 2025. 

If you need more time to file, you can request a six-month extension. The extended due date for 2024 tax returns is October 15th, 2025. To avoid penalties, submit your extension and tax payments before the original due date.

Attach Schedule C, Schedule SE, and other supporting schedules to your Form 1040.

The IRS offers several ways to file your taxes online for free. Alternatively, you can use an assisted tax preparation service such as TurboTax. If you prefer to paper file your return, review the IRS instructions to find the return mailing address for your state. 

We recommend partnering with the tax professionals at 1-800Accountant for a specialized, budget-friendly tax filing service. 

When and How to File Form 1040-ES

Refer to the following due dates for your tax year 2025 quarterly estimated payments. The following quarterly estimates represent advance tax payments towards 2025 income taxes.

• First quarter (January 1st – March 31st, 2025): April 15th, 2025

• Second quarter (April 1st – May 31st, 2025): June 16th, 2025

• Third quarter (June 1st – August 31st, 2025): September 15th, 2025

• Fourth quarter (September 1st – December 31st, 2025): January 15th, 2026

You can submit Form 1040-ES by mail or make your estimated tax payments online. If you prefer to mail your estimates, review the IRS list of 1040-ES mailing addresses for each state.

Get Expert Help to Get the Lowest Tax Bill

The rideshare driver tax rules can feel confusing, especially if you’re new to self-employment.

Fortunately, 1-800Accountant provides several budget-friendly services to help Uber drivers and other independent contractors. Professional CPAs offer year-round tax advice, return preparation, and tax filing support. We’ll help you calculate your estimated tax liability and make timely payments to avoid penalties. 

During tax season, tax experts review your bookkeeping to maximize your business tax deductions and lower your tax bill. Schedule a free consultation with 1-800Accountant to get hands-on, specialized support for your Uber tax return.