What can an UBER driver deduct?

[SweetieJean]

Would Uber have a record?

[tucknsal]

Uber has a record of my trip mileage with passengers, but not the in-between time, while I am on-line and driving to pickup my next passenger. At least I think so, I will check with them. If they don't have a record, is there a Plan B I can do?

[IndySusan]

Uber doesn't know your non-trip mileage, they only track the mileage from when you pick up the rider until you drop them off.  You may read about plugging in an average amount of miles using a day, week or month where you have tracked the mileage accurately. Unfortunately, the average method won't work for Uber driving since the number of trips and therefore miles can vary greatly from day to day. If you don't have odometer readings annotated in a notebook or on gas receipts, you will need to go thru each ride and record the mileage reported by Uber. For the future, the easiest way to track mileage is to note your odometer reading when you go available and again when you've stopped for the day; the difference between the numbers would be your daily mileage. If you stop driving to do personal errands and then resume driving, the in between mileage while running errands cannot be included in your mileage for the day.

[ayereb]

Hi
I'm from New Jersey
Dead miles are business expenses ?
I don't think we can deduct 0.57 cent legally ?
If I file dead miles
How can I prove ?

[TaxGuyBill]

If you are dropping somebody off, and on your way to another pick up (or intentionally going to busy area), yes, those miles are deductible.

Yes, you can use the Standard Mileage Rate.  

You should be keeping a daily log of your miles.  Your Uber log probably shows the time you drop somebody off and pick up the next person.  If there is only a short period of time between them, the IRS shouldn't have any problem with understanding that those 'extra' miles are for business.

[Realanswers]

You should be able to deduct 75% of the lease payment based upon business use on Line 20A Schedule C.

[SweetieJean]

How did you arrive at 75%?

[ABACUSES]

If I leave my "day job" office and immediately go online as available as I drive home, are you stating the mileage to my home from my office to home is deductible even if I do not catch a rider along the way?

[filipe]

I am using Revdapp (<a rel="nofollow" target="_blank" href="http://www.revdapp.com">www.revdapp.com</a>) to track my miles and car expenses - this app is free and it gives you a report at the end of the month or year that's acceptable from IRS. Yep - using miles is the best way about deductions for your taxes!

[alexam1012]

I use an app called MileIQ.  It tracks all your driving and very easily allows you (with a simple swipe) to categorize each drive as business or personal.  I have found this method to be very simple and straightforward for tracking all miles driven, and it works even if you do not have the app open.

[grandpamerritt]

Thanks very much to IndySusan and TaxGuyBill for their answers. I am not able to determine the correct approach, you both have well considered answers. So I came up with two spreadsheets so that I can figure it both ways. IndySusan method: mileage from time I turned on my Uber Driver app online. TaxGuyBill method: mileage at time I picked up my first rider. I personally am going to use the IndySusan method, but if I am audited, I have the ability to concede to them and use the TaxGuyBill method. The first form is a daily log you can print copies out of and put in your car to fill out each day. You enter the date, odometer when you went online, odometer at first pickup and odometer at time you went offline to return home. The two sheets I will share are shared, meaning you can make your own copy by clicking File - Make a copy, then using the copied version as your own, because you can't update mine. Daily Log form sheet is <a rel="nofollow" target="_blank" href="https://docs.google.com/spreadsheets/d/1cbYCwyI7VqMseUCdqOvb5pwKhogL1AjcDixTFnDrnh4/edit?usp=sharing...>
Then you enter your dates and odometer readings, Uber Pay and Uber Miles on a cumulative Uber Log sheet, which calculates the IRS taxable earnings both ways, IndySusan method and TaxGuyBill method.
The Uber Log sheet is <a rel="nofollow" target="_blank" href="https://docs.google.com/spreadsheets/d/1SW4M4u59mucteZFO1bWGJErH7NHmfx9EDgP4DluV5po/edit?usp=sharing...>

I hope these are helpful to fellow Uber drivers who are going to use the mileage deduction method.

[aliciawidmer23]

My husband is an Uber Driver and we are trying to figure out if we can write off the Uber service fee. Even though the 1099 they sent has what they pay to us after the fee, we were told that we can write it off anyway. Is that true?  And there is a booking fee that was included in the amount they 1099 to us, but is that paid to the driver or does Uber keep that? We are just trying to get everything done right to avoid an audit.

[Arrowfeather]

I would only disagree with the Uber fees on your tax summary page.  To my understanding, the "Safe Rides Fee" that Uber charges as a standard rate per ride is a pass-through fee and is NOT tax deductible as such to the driver.  The fee is collected through the rider's transaction, but is immediately passed on to Uber.  It was never deemed a component of the driver's revenue to begin with.

All other fees deducted from the driver's gross fares are deductible, otherwise.

[bennybbbnnn]

I recommend to use Turbo Tax Home & Bus. This software has also Self Employed included. ALL your Questions will Cover everything in here. Über Partners will record only your mileage from your pickup to drop off. Your NET income is recorded. Über has everything documented. Details from mileage, time duration ,earned. When you log in as a driver you'll see all your trip details. Your weekly monthly yearly income. Again record your NET. Cause they will post on your Yearly 1099k and 1099 Misc. GROSS income. From your Gross Income deduct your Net. Everything else you want to deduct will be in Turbo tax line by line. I use Standard Mileage Rate . Then after the mileage. Start claiming your other expenses like Third party Fees. Other maintenance. All Supplies... Home internet. Pc ink printer cp expenses.. And go on and on. As a part time Über driver. I love it. As I said buy the Turbo Tax Home and Bus. All your questions are IN there.  Good luck!!

[jeremy-lanier10]

If a plumber, in your respective state, can finish Job A and deduct the miles in his van/truck used to get to Job B, I would Ass-U-Me you can deduct the miles it takes to get from Ride A's Destination to Ride B's Pick-up. That means you have a Job lined up. The grey area is the part where you don't have a ride and are available to drive, but you drive to the Subway and get a sandwich you ordered; maybe you don't, but unless you have a ride lined up, it is hard to prove those miles driven are for professional business.