@ehfleming1972 -You will need to use a Schedule C to report income and expenses for ride sharing, Once on the Schedule C you will be able to access Vehicle Expenses.
Follow these steps to create your Schedule C:
If you're already signed in to your TurboTax account and working on your return:
- Search for self-employment income and select the Jump to link to go to the Self-employment income section.
- When asked the type of self-employment work you do, type Uber or rideshare driving.
- Answer a few questions about your driving work.
When you're a driver for a ride-sharing company such as Uber, Lyft, or other car sharing service, the most important thing to understand about your taxes is that you are probably not an employee of a ride-sharing company. Drivers for these companies are usually independent contractors, a fact that has tax implications, both at filing time and year-round.
Since you're an independent business owner, just about any money you spend on your gig as a ride-share driver will be a tax-deductible business expense. The first thing that probably comes to mind is your car. There are two ways to take a deduction for the business use of your car:
- Deduct the actual expenses of operating the vehicle for business, including gas, oil, repairs, insurance, maintenance and depreciation or lease payments.
- Take the standard IRS mileage deduction. As of 2021, the rate is 56 cents per mile driven for business use.
If you use your car for both ride-sharing and personal transportation, you can deduct only the portion of your expenses that apply to the business use. And whichever type of deduction you claim, it's critical that you keep thorough records. The IRS could disallow any tax deductions you can't support with:
Tax Tips for Uber Drivers
- Receipts
- Mileage logs
- Any other documentatio
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