I don't know exactly what expenses you claimed (if any), but hopefully the following info will help:
Tax deductions for your car
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 2016, the rate is 54 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:
- Receipts
- Mileage logs
- Any other documentation
Other tax deductions for ride-share drivers
Commissions you pay to the ride-share company are a business expense, as is any cost you may have to pay for technology installed in your car. Other tax deductions include:
- Water, gum or snacks for passengers
- Tolls and parking fees
In addition, ride-sharing companies typically require use of a smartphone.
- The portion of your mobile phone expenses attributable to your ride-share work can be used to reduce your self-employment income.
- For simplicity's sake, it may make sense to have a dedicated phone for work.
You will enter most of these expenses under Other Common
Expenses on the business income and expenses page in TurboTax. When entering
things look for the blue hyperlinks with tell me more. If you get really stuck,
contact the TurboTax folks and they’ll walk you thru it.
For taxes next year (for tracking your business expenses for 2017), I suggest taking
advantage of the free version of Quickbooks Self-Employed. You’ll get info about how to access your QuickBooks Self-Employed account after you have paid and filed.
