Guide · 6 min read
The 1099 you get from Uber doesn't tell the IRS what you actually made. Here's how to track miles, fees, and deductions so you keep more of it.
A driver who runs 25,000 business miles a year has roughly $16,750 in deductible mileage at the 67¢ standard rate. Most drivers track only on-trip miles from the app and miss thousands. Combine that with untracked phone, car wash, and toll deductions and the average driver overpays $2,000+ per year.
Stride, MileIQ, or a built-in tracker — anything that runs in the background and logs every drive. The IRS requires a contemporaneous log, not a year-end estimate.
Have all platform payouts deposit there. Pay for gas, car washes, and phone bill from this account. Separation = audit-proof.
Snap and toss. Car wash receipts, oil change invoices, toll statements, parking. Each one is dollars off your tax bill.
Move 25–30% of net earnings to a separate savings account every week. Pay quarterly estimates in April, June, September, January.
SnapBooks logs mileage, splits Uber/Lyft/DoorDash payouts, and tells you what you actually owe in tax.
Start freeYes. You'll receive a 1099-K for ride payments and a 1099-NEC for incentives/referrals if you cross IRS thresholds. The 1099-K shows GROSS — including the platform's commission. You deduct the commission as an expense, not net the income.
For most rideshare and delivery drivers, standard mileage (67¢/mile in 2024) beats actual expenses — and it's much simpler. You can only choose actual expenses if you pick it in the first year you use the vehicle for business.
Online miles (waiting for a ping), on-trip miles, and miles between back-to-back trips. The mileage logs Uber/Lyft show ONLY count on-trip — most drivers under-report by 20–40%. Use a dedicated mileage app.
Phone bill (business %), phone mount, dashcam, hot bags (delivery), water/snacks for passengers, car washes, tolls, parking, AAA, and a portion of cell data plan.
Yes, if you expect to owe more than $1,000 at tax time. Most full-time gig drivers should pay quarterly estimates — typically 25–30% of net profit — to avoid underpayment penalties.