# What can you deduct as an UberX driver in the USA?



## Super dUber (Jul 31, 2015)

My understanding is that you can either deduct by mileage or by expenses. Which do you use? Can I deduct by mileage AND tolls? Tolls are being reimbursed in my paycheck but it's not really "net income."


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## StarzykCPA (Aug 6, 2015)

Yes, you can deduct both mileage and tolls. Your tolls reimbursement will be reported in income at the end of the year, but you will report tolls expense to offset that income along with any other tolls you paid.


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## ginseng41 (Nov 30, 2014)

It depends on a lot of factors if you should choose to use actual expenses or mileage. Mileage is absolutely simpler and if you drive a cheap, older car always the best option. Even my 2013 Toyota Camry hybrid that had 35,000 miles on it when I started 10 months ago was better by mileage. If, however you drive a luxury vehicle that will experience significant depreciation pe mile that you put on it, you may want to consider doing true expense deduction.  Tax software does this calculation for you. You would need to keep track of gas, repairs and maintenance, mileage for both work and personal, license and registration, property tax and any interest paid on a loan. If you choose this option one year, you must continue to use it for that vehicle in subsequent years. It also might be worth noting that in the first year that you claim business expenses for a vehicle you can take something called accelerated deprectiation. If you are only doing uber for a short time, this might be another factor to consider. Without knowing your specifics, it's really hard to make an education recommendation.


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