When you drive for Uber, you are regarded as an independent contractor, not an employee. This means that at the end of the year, you will receive a 1099 form rather than the typical W-2 you may be used to getting.
you are considered by the IRS as a self-employed individual operating your own business. The IRS refers to this as conducting business as a sole proprietorship.
Independent contractors report their income and expenses using the IRS form Schedule C. On this form, you calculate your net profit or self-employment income.
Because you are not technically employed by Uber, Uber does not withhold
social security and medicare taxes or federal income taxes from your
earnings like a traditional job where you get a W-2. Because of this, you are responsible for paying your income tax as well as your self- employment tax. Self-employment tax is the same as social security tax + medicare tax.
