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Deductions

I work as self employed for Uber and as an online Tutor. What can I deduct as expenses? Can they be deducted 100%? For example I need a new phone since mine is going slow and sometimes crashes

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1 Reply
gkacpa
Expert Alumni

Deductions

Hello @AndresGF this is a great question and very popular for Gig workers!

 

You will need to separately report each self-employment activity on Schedule C. You will have two Schedule C's - one for your Uber activities and the other for online tutoring. The expenses incurred by each of these activities will be reported on their respective Schedule C's. 

 

In regards to deductions, you can deduct any business expenses that the IRS terms as "ordinary and necessary." Ordinary expenses are ones that are common and accepted in your trade or business. Necessary expenses are ones that are helpful and appropriate for your trade or business. You can find more information on the IRS' website on deductible expenses here

 

The most common expenses for Uber are mileage and phone expenses. For expenses you use for personal use as well, you will need to determine the percentage of your business use portion and allocate that amount as a deduction. For example, let's say that your annual phone bills total $1,000 and you use your phone for Uber 60% of the time. You can deduct $600 of your phone bill ($1,000 * 60%). 

 

The IRS also has a wonderful website for Gig workers. 

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