How to File Uber Taxes Without a 1099 Form

Filing taxes as an Uber driver can be challenging, especially without a 1099 form. However, understanding the process is essential to meet tax obligations and avoid penalties. Drivers who don’t receive a 1099 due to earnings below certain thresholds are still required to report all income.

Gathering Earnings Data from Uber

Accurate income reporting starts with gathering earnings data from the Uber platform. Uber provides detailed summaries of earnings through the driver dashboard, accessible via the app or website. These summaries include trips, fares, and bonuses. Regularly downloading and saving these summaries ensures complete records for the year.

Weekly and monthly statements further break down earnings into categories like base fare, surge pricing, and tips. Reviewing these statements can help identify discrepancies. If earnings don’t match expectations, contacting Uber support is recommended.

Drivers should also note adjustments or deductions made by Uber, such as service fees or vehicle rental charges. These impact total income and must be carefully reviewed. Tracking these adjustments ensures accurate tax reporting and helps identify deductible expenses.

Calculating Self-Employment Income

After gathering earnings data, drivers must calculate self-employment income. This starts with gross income, which includes all earnings before deductions. To calculate net income, allowable business expenses, such as vehicle-related costs (fuel, maintenance, depreciation) and other business expenses (e.g., phone bills), are subtracted from gross income. These deductions are permitted under the Internal Revenue Code as “ordinary and necessary” expenses.

Using the standard mileage rate, set at 66 cents per mile for 2024, can simplify the process of calculating vehicle-related deductions. This rate encompasses various costs, often making it more advantageous than itemizing individual expenses. Drivers should maintain a detailed log of business miles to support their mileage deduction claims. Comparing the standard mileage rate with actual expenses can help determine the better option for tax savings.

Deductions for Ridesharing Drivers

Ridesharing drivers can claim several deductions to lower taxable income, with vehicle expenses being one of the most significant. Drivers can choose between the actual expense method, which deducts specific costs like fuel and repairs, or the standard mileage rate, which offers a straightforward per-mile deduction.

Other deductible expenses include the business portion of smartphone and data plan costs, essential for managing rides and navigation. Accurate records of business versus personal use are required to substantiate these deductions.

Costs incurred during rides, such as parking fees and tolls, are deductible without limitation. Car washes and detailing, necessary to keep the vehicle presentable, also qualify as ordinary and necessary business expenses.

Paying Estimated Taxes

Uber drivers, as self-employed individuals, must pay estimated taxes quarterly to cover income tax and self-employment tax, which includes Social Security and Medicare contributions. Those expecting to owe at least $1,000 in taxes after credits must comply with this requirement to avoid penalties.

To calculate quarterly payments, drivers should estimate annual income and expenses, accounting for seasonal fluctuations. IRS Form 1040-ES provides a worksheet to assist in estimating both federal income tax and self-employment tax. The self-employment tax rate is 15.3%, covering both employee and employer portions of Social Security and Medicare.

Maintaining Accurate Records

Accurate record-keeping is critical for effective tax management. Proper documentation ensures income is reported correctly and deductions are substantiated, reducing the risk of IRS audits. The IRS requires self-employed individuals to keep records supporting reported income and expenses.

Digital tools and apps can simplify record-keeping by tracking mileage, expenses, and earnings in real time. These tools often integrate with bank accounts and credit cards, making it easy to categorize expenses and generate reports. Drivers should back up digital records regularly to prevent data loss. Physical receipts for vehicle maintenance and other business expenses should also be organized and safely stored to support deductions claimed.