What Tax Forms Do Uber Drivers Use?

Unlike traditional employees who have taxes withheld from their paychecks, Uber drivers are generally classified as independent contractors. This means you are responsible for managing your own income reporting, expense tracking, and tax payments throughout the year.

Understanding Your Income Forms

Uber drivers typically receive two primary income forms: Form 1099-NEC and Form 1099-K. Form 1099-NEC (Nonemployee Compensation) reports income of $600 or more from non-driving activities like referral bonuses. You receive this form if earnings meet the $600 threshold.

Form 1099-K (Payment Card and Third Party Network Transactions) reports gross payments processed through Uber’s platform for rides and deliveries. For the 2024 tax year, you will receive a Form 1099-K if your gross earnings from on-trip transactions exceed $5,000. This form reports gross income, meaning it includes Uber’s fees and commissions, which you will deduct later.

Even if you do not receive a 1099-NEC or 1099-K because your earnings did not meet the reporting thresholds, you must still report all income earned as an Uber driver. The Internal Revenue Service (IRS) requires all income to be reported, regardless of whether you receive a specific tax form.

Identifying Deductible Business Expenses

Tracking business expenses reduces your taxable income by lowering your net profit. You will report both your income and these expenses on Schedule C (Form 1040), Profit or Loss from Business.

Common deductible expenses include vehicle-related costs, which can be calculated using either the standard mileage rate or actual expenses. For 2024, the standard mileage rate is 67 cents per business mile driven, and it covers costs like gas, oil changes, and depreciation. Alternatively, you can deduct actual expenses such as gas, oil, repairs, insurance premiums, vehicle registration fees, and depreciation of your vehicle.

Beyond vehicle expenses, other deductible costs include the business portion of your cell phone bill, tolls, parking fees, car washes, and any fees or commissions paid directly to Uber. Keeping meticulous records, such as mileage logs and receipts for all purchases, is necessary to support your deductions.

Calculating Your Tax Liability

Your net earnings from Uber are subject to self-employment tax, which funds Social Security and Medicare. This tax applies to net earnings of $400 or more and is calculated using Schedule SE (Form 1040), Self-Employment Tax. The self-employment tax rate is 15.3%, comprising 12.4% for Social Security and 2.9% for Medicare. For 2024, the Social Security portion applies to net earnings up to $168,600, while the Medicare portion has no income limit.

Since Uber does not withhold taxes from your earnings, you are responsible for paying estimated taxes throughout the year. If you expect to owe at least $1,000 in federal tax, you must make quarterly payments to the IRS to avoid penalties. These estimated payments cover both your income tax and self-employment tax liability.

Estimated tax payments are due on April 15, June 15, September 15, and January 15 of the following year. You calculate these payments using Form 1040-ES, Estimated Tax for Individuals. Paying these amounts on time prevents underpayment penalties and ensures you meet your tax obligations.

Filing Your Annual Tax Return

The culmination of your tax journey as an Uber driver involves assembling all your financial information onto Form 1040, the U.S. Individual Income Tax Return. This is the main form where all the details from your income forms, expense deductions, and self-employment tax calculations come together. The income reported on your 1099-NEC and 1099-K forms, along with any other unreported income, is used to determine your gross income.

The net profit or loss calculated on your Schedule C, derived from your gross income minus all deductible business expenses, flows directly to your Form 1040. Similarly, the self-employment tax determined on Schedule SE is also reported on your Form 1040. These forms collectively build a comprehensive picture of your taxable income and total tax liability.

The general deadline for filing your annual tax return is April 15 of the year following the tax year. If this date falls on a weekend or holiday, the deadline shifts to the next business day. You have several options for filing, including using tax software, working with a qualified tax professional, or utilizing IRS Free File if you meet the income requirements.