# UBER/LYFT TAX DEDUCTIONS?



## CANELO ALVAREZ (Apr 29, 2020)

Please explain what expenses can be used against Uber/Lyft Income as deductions during your income tax preparation.
Thank you


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## Fuzzyelvis (Dec 7, 2014)

mileage should easily bring most drivers' incomes down to $0.


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## dauction (Sep 26, 2017)

As Fuzzy said .. Mileage ...that should be all you need to bring your taxable income down to a little of nothing. USE the Number Lyft and Uber have for you and you'll never be audited. Use Turbo Tax or any other software..

and Just fill in ..these numbers..









Just fill in the numbers on Turbo Tax

Income = 18,700

You look for DEDUCTIONS and Deeduct PLatform Fees , $4,132, Service Fees, $3,700 etc.. totasl $7,900 In FEE deductions

Then you'll come to Milage and you see I drove 19,000 miles for Lyft (full time started in April) so 19,000 x .58 (58 cents a mile is federal mileage deduction) $11,000

Miles D = $11,000
FEES D = $7,900

$18,900 Total deductions

so you see I had no Federal Tax due

BTW ....you also get the Federal Standard Deduction ..if you are single it is $12,200 !

I actually recevied a healthy refund . I did slight more in Uber than Lyft , I had another job at the Time and held back 50% of my wages into Health Savings account

Bottom Line dont try and be cute claiming home office and all the other stuff... Just take the standard Mileage (yes you can stil take your phone and a few other things but dont try claiming home office etec.)

Rideshareguy has more details https://therideshareguy.com/rideshare-taxes/


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## Mash Ghasem (Jan 12, 2020)

Gas, car wash, cleaning supplies, accessories like phone mount and charging cable(s).
Need to keep good track of mileage.


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## Daisey77 (Jan 13, 2016)

Uber Lyft commision
Car washes
Snacks drinks for passenger
Rideshare insur
Tolls
Phone mounts charging cbl


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## SHalester (Aug 25, 2019)

Daisey77 said:


> Tolls


Tolls with a pax or?


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## Launchpad McQuack (Jan 8, 2019)

SHalester said:


> Tolls with a pax or?


Any tolls paid in the course of doing business, either with a pax or without. You just need to be careful that you don't double dip. If you are reimbursed for a toll and the reimbursement amount is not included in your income, then you can't also deduct the toll. It has already effectively been deducted by not being included in income.


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## SHalester (Aug 25, 2019)

Launchpad McQuack said:


> Any tolls paid in the course of doing business, either with a pax or without.


not tolls that are reimbursed, which was my point.


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## Launchpad McQuack (Jan 8, 2019)

SHalester said:


> not tolls that are reimbursed


It depends on whether the reimbursements are included in your income. If they are not included in income, then you cannot deduct.



SHalester said:


> which was my point.


You didn't make a point. You asked a question. I answered it.


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## SHalester (Aug 25, 2019)

Launchpad McQuack said:


> It depends on whether the reimbursements are included in your income.


incurred expenses that are directly reimbursed are not IRS accepted deductions. period. The net effect of what you describe is zero. If in 'the' income it would be part the expenses and therefor net out to zero. In another words............not a deduction. sheesh.

And, in my first reply, I did ask a question, but not of you. Details matter.


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## Uberguyken (May 10, 2020)

I recommend using TRIPLOG for your milage Uber and Lyft are nowhere near accurate and if audited the IRS wants individual trip details to be accepted which Triplog provides in a detailed excel spreadsheet broken down my year,month, day, trip


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## mama2bebes (Aug 28, 2020)

Do drivers normally deduct cost of gas?
Can we deduct wear & tear maintenance and major repairs to our vehicle? 
Can we deduct payments for renting a car?


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## UberTaxPro (Oct 3, 2014)

mama2bebes said:


> Do drivers normally deduct cost of gas?
> Can we deduct wear & tear maintenance and major repairs to our vehicle?
> Can we deduct payments for renting a car?


All business expenses are deductible. You need to determine which "method" to use. Your options are* Standard Mileage Rate* or *Actual expenses*. You shouldread up on the methods, you'll have to pick one at tax time.
https://www.irs.gov/taxtopics/tc510


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## 25rides7daysaweek (Nov 20, 2017)

mama2bebes said:


> Do drivers normally deduct cost of gas?
> Can we deduct wear & tear maintenance and major repairs to our vehicle?
> Can we deduct payments for renting a car?


No deduction for mileage on rentals
Most people not renting use federal
.58 per mile driven deduction
In most cases this way is better..


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## dauction (Sep 26, 2017)

We can now deduct our haircuts ...apparently up to $70,000 (according to Trump anyways)


Here's how it works.. get $100 worth of haircuts for the year and simply add a couple zeros in the haircut deduction column.. so $100 reads, $10,000


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## Frontier Guy (Dec 27, 2015)

I do actual expenses: fuel, oil changes, any vehicle service, car washes, 3x per year I have a full exterior detail done and the back seat scrubbed, portion of insurance, portion of cell phone, portion of Sirius bill. I go to the same full service car wash every week or two weeks, have a VIP card so they track my washes, at the first wash in the new year, I ask for a record of the previous years washes. In 2019 I had to rebuild the front and rear suspensions of my rideshare vehicle, I also installed a 2" lift kit as part of the rebuild, $4,400 in repairs, full receipts for everything. So far in 2020, my expenses are minimal, although I still need tires, front brakes and possibly a coolant flush.


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## IRME4EVER (Feb 17, 2020)

dauction said:


> As Fuzzy said .. Mileage ...that should be all you need to bring your taxable income down to a little of nothing. USE the Number Lyft and Uber have for you and you'll never be audited. Use Turbo Tax or any other software..
> 
> and Just fill in ..these numbers..
> 
> ...


 Turbo Tax will charge you 200.00 at the end of your filing, they claim FREE ironically not true!
Check your state you do qualify for FREE filing with actual tax preparers (google free tax preparers for 1099K in your area). For 2 years I used VITA here in AZ. 
Before you go in and get your taxes done you'll need your 1099k, 1099M, and your yearly summary ( which you'll find under the tax information) from Uber for that year. Print all information out. 
My gross earnings were 54,159.63, my expenses, fees, and tax were 20,029.40. My net payout was 34,130.23. Completed trips 3,330
and my online miles were 48,653.61. They multiply miles online with 40 cents a mile, mine came out to 12,163.40 (that is a credit towards you). Gas receipts I keep them all and write the mileage on top. 
Then you make sure you have proof of what you spent that year driving for Uber (I don't do Lyft). 
Deductions include car payments or car rental, insurance, car maintenance, car washes (I have a monthly plan), roadside if you have it (I do and cheaper than Uber's), cleaning supplies, cell phone bills (you use your cell phone with Uber), phone charging cords, dash cams, anything you can think of that you use while driving for Uber. 
As far as Rideshare Guy tried his recommendation on tax filing thru me a red flag, when they told me that I would get back 43,000.00.
As an Uber driver, you're lucky if you owe nothing. I got back 2.00 from State and 25.00 from Federal. I think Rideshare Guy recommends his tax info not realizing the huge error. I could have filed and got back 43,000.00. Thank you NOT.


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## Daisey77 (Jan 13, 2016)

mama2bebes said:


> Do drivers normally deduct cost of gas?
> Can we deduct wear & tear maintenance and major repairs to our vehicle?
> Can we deduct payments for renting a car?


 if you're renting a vehicle you can deduct whatever your weekly fee is that you actually pay. So the amount you actually pay after any bonuses have been applied to lower the rental fee.

If you're driving your own vehicle, you can choose standard mileage or actual expenses. Standard mileage is this year 57.5 cents a mile. There's a few other items you can add on like car washes, Insurance you acquired specifically for this job, snacks for the passengers, and whatever portion of your phone bill you use for this job. Actual expenses you add up everything you've spent on the vehicle including gas and repairs. The one thing to keep in mind is the first year you place a vehicle into service, if you choose actual expenses you have to stick with that the entire time you using the vehicle. If you do mileage the first year, the subsequent years you can switch back and forth between the two filing methods


IRME4EVER said:


> Turbo Tax will charge you 200.00 at the end of your filing, they claim FREE ironically not true!


 I have filed for five years as a full-time Rideshare driver and I've never paid once for TurboTax. Are you using the link through the Uber app? Or are you going to turbotax.com directly?


IRME4EVER said:


> They multiply miles online with 40 cents a mile, mine came out to 12,163.40


Why would they only use $0.40 a mile when you're entitled to more? Last year it was $0.58 a mile this year is $0.575. You should have been able to deduct $28,217.93. Even at $0.40 a mile they should have deducted $19,461.44.


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## dauction (Sep 26, 2017)

IRME4EVER said:


> Turbo Tax will charge you 200.00 at the end of your filing, they claim FREE ironically not true!


 I have gotten TurboTax free through Lyft past couple years including State


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## mama2bebes (Aug 28, 2020)

UberTaxPro said:


> All business expenses are deductible. You need to determine which "method" to use. Your options are* Standard Mileage Rate* or *Actual expenses*. You shouldread up on the methods, you'll have to pick one at tax time.
> https://www.irs.gov/taxtopics/tc510


Thanks so much, I should have read up before posting, lol. I think I get the gist of it now.


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## Seamus (Jun 21, 2018)

Frontier Guy said:


> car washes, 3x per year I have a full exterior detail done and the back seat scrubbed, portion of cell phone, portion of Sirius bill


These are actual business expenses that are not part of the mileage so everyone deducts actual business expenses (or should be) in addition to mileage deduction. The actual vs standard mile deduction is only relevant to the car expenses included as part of the standard mile deduction.

For almost everyone the standard mile deduction is far more advantageous year over year. The problem with the actual expense method is once you go down that road you are stuck with it. You cannot change back and forth every year. So if in one year you have a lot of repairs and actual expenses so you chose that method, the next year you may have very little so your screwed.


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## UberTaxPro (Oct 3, 2014)

mama2bebes said:


> Thanks so much, I should have read up before posting, lol. I think I get the gist of it now.


For most, mileage method is preferred (and easier for recordkeeping purposes) over the long term. If you determine that actual expenses is better for you for some reason I suggest you discuss long term planning with a tax pro before proceeding.


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## Daisey77 (Jan 13, 2016)

Seamus said:


> These are actual business expenses that are not part of the mileage so everyone deducts actual business expenses (or should be) in addition to mileage deduction. The actual vs standard mile deduction is only relevant to the car expenses included as part of the standard mile deduction.
> 
> For almost everyone the standard mile deduction is far more advantageous year over year. The problem with the actual expense method is once you go down that road you are stuck with it. You cannot change back and forth every year. So if in one year you have a lot of repairs and actual expenses so you chose that method, the next year you may have very little so your screwed.


That's only the first year you put the vehicle into service. If you choose the actual expense route the first year, you have to stay with that the entire time you use the vehicle. If you use mileage the first year then you can switch back and forth the following years


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## Seamus (Jun 21, 2018)

Daisey77 said:


> That's only the first year you put the vehicle into service. If you choose the actual expense route the first year, you have to stay with that the entire time you use the vehicle. If you use mileage the first year then you can switch back and forth the following years


False. You're misunderstanding the actual code you can't switch back and forth. You can switch to actual if you used standard in the first year but not actual to standard. Here is the correct answer since you obviously won't take my word for it.

*Can I switch between the standard mileage rate and actual expense method?*
SOLVED•by TurboTax•578•Updated December 16, 2019
If you want to use the standard mileage rate to calculate vehicle expenses, you must choose it in the first year you use the car for business. In later years you can choose to use the standard mileage rate or switch to actual expenses.
Once you use actual expenses for the vehicle (even if it's the first year you used it for business), you can't switch to standard mileage rate. You must continue using actual expenses as long as you use that car for business.
If you use the standard mileage rate, you must have records of business versus personal miles driven.
If you use actual expenses, you must have records of all expenses and must allocate those between business and personal use.


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## Daisey77 (Jan 13, 2016)

Seamus said:


> False. You're misunderstanding the actual code you can't switch back and forth. You can switch to actual if you used standard in the first year but not actual to standard. Here is the correct answer since you obviously won't take my word for it.
> 
> *Can I switch between the standard mileage rate and actual expense method?*
> SOLVED•by TurboTax•578•Updated December 16, 2019
> ...












This Is directly from the IRS website


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## DJJoeyZ (May 1, 2020)

Are deadhead miles deductible?


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## Seamus (Jun 21, 2018)

DJJoeyZ said:


> Are deadhead miles deductible?


Yes if you say you were re staging.



Daisey77 said:


> View attachment 511912
> 
> 
> This Is directly from the IRS website
> ...


To clarify, you are technically correct but with more limitations added on then you mentioned. To switch methods during the life of your use of the car then:

1- as you mentioned you would have had to use the standard mileage method in the first year you use the car for business.
2- you only used the straight-line depreciation method.
3- You did not take any section 179 expenses.
4- If the car is leased there are even more restrictions.

So in reality, there are most likely only a very small amount of Uber drivers that this would apply to. However I will concede you were correct but only in very limited cases. From my experience most people who use the actual expenses start out right away in the first year that way and also take accelerated depreciation on a new vehicle for their best tax advantage While using the car for business purposes,rather than straight line over the life span of the vehicle.

Fore most rideshare drivers they should stay away from switching back-and-forth or hire a tax professional to understand what's allowable and prudent.


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## Wildgoose (Feb 11, 2019)

Daisey77 said:


> View attachment 511912
> 
> 
> This Is directly from the IRS website
> ...


Actual expense is a tricky one. In order to claim as actual expense, tax payer needs to declare that how many of % that he/she had used the car for business and how many of % for personal use. Each and every expense will be divided in those area. And tax payer can not use all of his/her purchased amount of car in one tax return. It should be calculated with amortization. So, Except without having major repair, tax payer should claim IRS mileage deduction which give huge benefit for drivers and can avoid IRS audit later time.
What member @dauction explained above is quite standard. Should follow his explanation. Toll fees are in the statement as third party fees or will state explicitly. There is a block to fill that in on Tax claim sheet. ( Tolls, parking meter fees)
Other than the data from statement, tax payer driver could add whatever you bought that was directly related with ridesharing business. Such as Phone mount, Floor Map, Cleaning stuffs ( cloth, cleaning agent ), sneak guard, book or a laptop for use of business tracking purpose but shouldn't be in every year claim. ) whichever bought with a receipt. I don't recommend carwash since you can't have a single receipt.

For the full time drivers, purchasing of phones and phone bill could be added but phones shouldn't be purchased every year and bill should not be with family plan. Make sure you keep the receipt or if you can't keep the receipt, better not to claim them as deduction.


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## Daisey77 (Jan 13, 2016)

DJJoeyZ said:


> Are deadhead miles deductible?


I know you can if the app is on. I don't know specifically how that works if the app is not on. This is when destination filters come into play more for tax purposes than to score a ride

I'm also pretty sure you can claim deadhead miles if you're repositioning yourself. so in between rides


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## Wildgoose (Feb 11, 2019)

Daisey77 said:


> I'm also pretty sure you can claim deadhead miles if you're repositioning yourself. so in between rides


Now Uber statement shows online mile that shows combination of dead miles and ride miles. No other mileage record is needed anymore.


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## Daisey77 (Jan 13, 2016)

Wildgoose said:


> Now Uber statement shows online mile that shows combination of dead miles and ride miles. No other mileage record is needed anymore.


Well I wouldn't go that far as the saying no other mileage record is needed anymore but hypothetically speaking yes that would be correct. In the real world we know record-keeping with both of these companies isn't their Forte


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## FLKeys (Dec 27, 2018)

Wildgoose said:


> Now Uber statement shows online mile that shows combination of dead miles and ride miles. No other mileage record is needed anymore.


There are miles outside of online miles that are deductible. Some 100% some split by percentage between business and personal use.


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## Frontier Guy (Dec 27, 2015)

Wildgoose said:


> Actual expense is a tricky one. In order to claim as actual expense, tax payer needs to declare that how many of % that he/she had used the car for business and how many of % for personal use. Each and every expense will be divided in those area. And tax payer can not use all of his/her purchased amount of car in one tax return. It should be calculated with amortization. So, Except without having major repair, tax payer should claim IRS mileage deduction which give huge benefit for drivers and can avoid IRS audit later time.
> What member @dauction explained above is quite standard. Should follow his explanation. Toll fees are in the statement as third party fees or will state explicitly. There is a block to fill that in on Tax claim sheet. ( Tolls, parking meter fees)
> Other than the data from statement, tax payer driver could add whatever you bought that was directly related with ridesharing business. Such as Phone mount, Floor Map, Cleaning stuffs ( cloth, cleaning agent ), sneak guard, book or a laptop for use of business tracking purpose but shouldn't be in every year claim. ) whichever bought with a receipt. I don't recommend carwash since you can't have a single receipt.
> 
> For the full time drivers, purchasing of phones and phone bill could be added but phones shouldn't be purchased every year and bill should not be with family plan. Make sure you keep the receipt or if you can't keep the receipt, better not to claim them as deduction.


If you keep good and accurate records, these are all easy things to deal with. Turbo Tax calculates this breakdown also. Further, when you look at Turbo Tax and figure out your actual expenses, it even tells you to list the amount based on % of use. Last year, 80% of my mileage was U/L, I track my miles 2 ways, at the beginning of the year, I write down the beginning mileage, during the course of the year, every day I do U/L I record my miles driven, and the end of the year I record my ending miles. Since all U/L miles are calculated, it's very easy to determine the % of use and apply it to the actual expenses. The only item that it can be difficult is cellphone, as I have very few U/L related calls, but data is the big issue.

Car wash it depends on where you go for the wash, if you go to a place that it's part of your fuel receipt, then yes, it can be a problem, I don't use those types of car washes, I use a full service dedicated car wash, I keep the receipt and at the end of the year can go back and get a list of the entire year since they track washes by license plate.


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## PTB (Feb 3, 2015)

dauction said:


> As Fuzzy said .. Mileage ...that should be all you need to bring your taxable income down to a little of nothing. USE the Number Lyft and Uber have for you and you'll never be audited. Use Turbo Tax or any other software..
> 
> and Just fill in ..these numbers..
> 
> ...


There are tax consequences for excess contributions to an HSA (Health Savings Account).
50% sounds like "excess"


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