How to Fill Out Schedule C for an Uber Driver

As an Uber driver, you are considered an independent contractor, which means you operate your own business. You must report your income and expenses to the IRS, and the primary form for this is Schedule C (Form 1040), Profit or Loss from Business. This form is filed with your annual Form 1040, and it determines the net profit or loss from your driving activities. Understanding how to correctly complete this form is necessary for meeting your tax obligations as a self-employed individual.

Information and Documents to Gather

Before beginning to fill out any tax forms, the first step is to collect all the necessary financial records from your year of driving. This preparation ensures accuracy. Your income documentation is a primary component, and Uber provides several key documents, available by January 31st through your driver dashboard. You will find an annual tax summary, which contains a breakdown of your earnings, mileage, and certain fees Uber has tracked.

You may also receive official IRS forms, such as Form 1099-K and Form 1099-NEC. Form 1099-K reports the gross amount of payments from passengers processed through the platform. Form 1099-NEC is issued if you earned $600 or more in non-driving income, like referral bonuses or promotions.

It is also important to gather all your expense documentation. Vehicle records are often the most significant category of expenses. This includes a detailed mileage log showing your total miles driven for the year, your business miles, and any commuting miles. You should also have receipts for:

• Gas
• Oil changes
• Repairs
• Tires
• Car washes
• Auto insurance

Other common expenses include costs related to your cell phone. You will need your monthly bills and the purchase receipt for the device itself to determine the portion used for business. You should also collect records of any other business-related costs, such as tolls, parking fees, and supplies for passengers like water or snacks.

Any fees paid to a bank for a dedicated business account are also deductible. Uber’s fees, such as their service and booking fees, are also deductible and can be found on your tax summary.

Calculating Your Vehicle Expense Deduction

The largest deduction for most Uber drivers relates to the business use of their car, and you have two methods to calculate this expense: the Standard Mileage Rate and the Actual Expense Method. You must choose one method to use on your tax return. The choice can significantly affect your tax liability, so it is beneficial to calculate your deduction using both methods to see which is more advantageous.

The Standard Mileage Rate is the simpler of the two options. For the 2025 tax year, the rate is 70 cents per mile. This rate is designed to cover the costs of operating your vehicle, including gas, routine maintenance, and general wear and tear. To calculate your deduction, you simply multiply your total business miles by the standard rate. Even when using this method, you can still separately deduct tolls and parking fees.

The Actual Expense Method requires more detailed record-keeping but may result in a larger deduction, particularly if your vehicle has high operating costs. With this method, you add up all the specific costs you incurred for your car throughout the year, including gas, oil, repairs, tires, insurance, registration fees, and depreciation. You must then determine the business-use percentage of your car by dividing your business miles by the total miles driven. This percentage is then applied to your total car expenses to find the deductible amount.

A key rule is that if you use the standard mileage method in the first year you use your car for business, you can switch to the actual expense method in a future year. However, if you start with the actual expense method, you must continue to use it for as long as you use that same vehicle for your business. This rule makes the initial choice an important one with long-term implications.

Step-by-Step Guide to Completing Schedule C

With your income and expense documents gathered and your vehicle deduction calculated, you can now complete Schedule C. Start with the header information at the top of the form. You will enter your name, your business name (which can simply be your own name), and your business address. You will also need to enter a Principal Business Code; for rideshare drivers, the appropriate code is 485300.

Part I of the form is for reporting your income. On Line 1, “Gross receipts or sales,” you will enter the total gross income from your driving business. This figure should be the sum of the amounts reported on your Form 1099-K, Form 1099-NEC, and any other business income you received. Remember to use the gross amount from the 1099-K, before Uber’s fees are taken out.

Part II is where you will list your expenses. Your vehicle expense, which you calculated using either the standard mileage or actual expense method, is entered on Line 9, “Car and truck expenses.” The fees that Uber charges you, such as service and platform fees, should be entered on Line 10, “Commissions and fees.” The business-use portion of your cell phone bill can be reported on Line 27a under “Utilities.”

Part IV, “Information on Your Vehicle,” is a section that must be completed. The information you provide here depends on which vehicle deduction method you chose. If you used the Standard Mileage Rate, you will answer questions about your mileage. If you opted for the Actual Expense Method, you are required to complete the entire section, providing more detailed information about your vehicle and its costs.

Any business expenses that do not fit into the specific categories in Part II should be listed in Part V, “Other Expenses.” This is where you would itemize costs such as passenger supplies or bank fees for a business account. After listing all your income and expenses, Line 31 will show your net profit or loss, which is the final figure that represents your taxable business income.

After Completing Schedule C

Once you have calculated your net profit or loss on Line 31 of Schedule C, your work with that form is done, but the tax process is not yet complete. The number from Line 31 is a figure that flows to other parts of your tax return. This net profit or loss is transferred to Schedule 1 (Form 1040), “Additional Income and Adjustments to Income,” where it is combined with any other income you may have.

The net profit from your Schedule C is also used for another calculation: self-employment tax. This tax, which covers your Social Security and Medicare contributions, is the independent contractor’s version of the FICA taxes that are withheld from an employee’s paycheck. As a self-employed individual, you are responsible for paying both the employee and employer portions, which amounts to a rate of 15.3% on your net earnings.

This tax is calculated on Schedule SE, “Self-Employment Tax.” The net profit from Schedule C is the starting point for this form. If you have a net profit of $400 or more from your Uber driving, you are required to file Schedule SE and pay self-employment tax. The result from Schedule SE is then carried to your Form 1040, and you are able to deduct one-half of your self-employment tax as an adjustment to your income.