Your 2016 Uber Driver Taxes Explained
We’ve taught you how to make more money with Uber, but did you know you can also minimize your taxes to increase your income? True, taxes are hard. Knowing which deductions you can take on your Uber driver taxes is even harder.
Last week, Uber released 1099 tax documents to drivers. You should have a 1099-K and/or a 1099-MISC. If you haven’t received your tax documents yet, you can check the Uber driver taxes page to see when you should expect your documents.
If you’ve already received your tax documents, you probably want to know which tax deductions you can take to lower your Uber driver taxes and make more money?
We’ve created 2 simple flowcharts to help you understand which deduction method is best for you. Check them out below!
Looking for Lyft driver tips? Check out our video with Hip-Hop Lyft. or check out this list of over 100 on-demand side gigs for additional income.
Which deduction method can you use for your uber driver taxes?
Using the flowchart above, you should have determined which method of deduction you can use on your taxes.
Which deduction method will give you the best tax refund?
If you’re eligible for either deduction method, the next flowchart will help you choose the deduction method that will give you the best return.
- When filing your taxes you have a choice between two deduction methods: Standard Mileage or Actual Expenses.
- The Standard Mileage deduction method is the easiest, but may not give you the best return.
- The Actual Expenses deduction method allows you to depreciate your vehicle and deduct most of your vehicle related expenses by the percentage of business use, but requires more expense tracking.
We’ve put together a handy PDF with an additional bonus checklist exclusively for our readers.