GET A FREE QUOTE TODAY - CALL US +1 (844) 556-3073
Blog Layout
Tax Filing 101 for Rideshare & Delivery Drivers
Chad Dickinson • January 15, 2025
Navigating taxes as a rideshare or delivery driver can feel overwhelming, especially if you're new to the gig economy. Whether you drive for Uber, Lyft, DoorDash, Grubhub, or similar platforms, understanding the tax process is crucial to maximizing your income and avoiding costly mistakes.
In this guide, we'll break down the essentials you need to know for filing your taxes as a rideshare or delivery driver.
Watch Our Video for a Quick Overview
Why Filing Taxes Is Different for Rideshare and Delivery Drivers
As a rideshare or delivery driver, you’re considered self-employed in the eyes of the IRS. This means you're responsible for reporting your income and paying self-employment taxes. It also means you have access to numerous deductions to reduce your taxable income.
Key Documents You’ll Need
Before you start filing your taxes, make sure you gather these essential documents:
- Income Summary: Generated by your rideshare/delivery app, showing your earnings, number of trips, and fees deducted.
- Mileage Records: Track your mileage for tax deductions. Many apps, like Uber, provide this information, but using a mileage tracking app can help ensure accuracy.
- Expense Records: Keep receipts for work-related expenses like phone bills, tolls, parking, supplies, and meals.
Tax Deductions for Rideshare and Delivery Drivers
Understanding what you can deduct is key to saving money on your taxes. Here are some common deductions:
- Mileage: Deduct either the standard mileage rate or actual expenses (gas, maintenance, insurance).
- Phone and Internet Costs: Deduct a portion of your phone bill and data plan used for work.
- Supplies: Includes items like phone mounts, chargers, and delivery bags.
- Tolls and Parking: Deduct these if not reimbursed by the platform.
Tips for Simplifying Your Tax Filing
- Keep Organized Records: Regularly update your income and expense records to avoid last-minute stress.
- Use Tax Software or Hire a Professional: Consider software designed for self-employed individuals or consult a tax professional.
- Set Aside Money for Taxes: Remember to save for self-employment taxes (Social Security and Medicare) to avoid surprises.
Ready to File Your Taxes?
Preparing taxes as a rideshare or delivery driver doesn’t have to be daunting. By staying organized and taking advantage of deductions, you can maximize your earnings and minimize your tax bill.
If you have questions or need help filing your taxes, Arch Tax is here for you!
Identity theft continues to be a major concern during tax season, and the IRS has taken steps to protect taxpayers through increased identity verification procedures. While these efforts help reduce fraud, they can also delay your refund if your return gets flagged. In this post, we’ll explain what triggers these IRS identity checks, how to respond if it happens to you, and the simple steps you can take now to avoid delays altogether. Watch the below video for a quick explanation:
What is an ID.me Account?
Life has a way of throwing unexpected challenges our way — medical emergencies, divorce, job loss, the death of a loved one, and natural disasters. When you’re facing one of these major life events, the last thing you want to worry about is dealing with the IRS. But here’s the tough truth: personal tragedy doesn’t always help when it comes to your IRS case. In this video, Chad Dickinson from Arch Tax breaks down how personal hardship affects your ability to work with the IRS — and what you need to prove to actually qualify for hardship relief. Watch the video below to get the full story:
If you’re self-employed or earning income without tax withholding, you could be in for a big surprise at tax time! Without making Estimated Tax Payments (ETPs) throughout the year, you may owe more than expected—plus potential IRS penalties. The below video explains what Estimated Tax Payments are:
If you're considering withdrawing money from your 401(k) retirement account, you may be in for a costly surprise when tax season rolls around. Read this article and learn how to be prepared.
If you’ve gone through a divorce and still have IRS tax debt from a joint return, you might be wondering what happens next. Does your divorce decree protect you? Can the IRS come after you for the full amount? What steps should you take to separate your liability from your ex-spouse? In this blog, we’ll cover what you need to know about handling joint tax debt after a divorce and how you can protect yourself from unwanted tax liabilities.
Want to save money on your taxes? If you’ve had significant out-of-pocket medical expenses, you may be eligible for a tax deduction—but only if you meet specific IRS requirements. In this guide, we’ll break down which medical expenses qualify for deductions, what doesn’t, and how to properly claim them on your tax return. Watch the video below for a quick explanation:
Tax season is here, and the IRS has increased the standard deduction for 2024! This update means potential tax savings for millions of Americans. Whether you file as single, married, or head of household, understanding these changes can help you maximize your tax benefits. Check out this quick video from Chad Dickinson at Arch Tax explaining the new 2024 standard deduction amounts:
The 2024 tax season is here, and you might be wondering: how much do I have to pay in taxes? Whether you're filing as a single individual or married couple, understanding tax brackets and rates can help you better plan and avoid surprises. In this article, we’ll break down the 2024 tax brackets, explain the difference between marginal tax rate and effective tax rate, and share tips to help you optimize your tax planning.
If you’ve ever had health insurance through the Health Insurance Marketplace, there’s an important piece of paperwork you can’t overlook when it’s time to file your taxes: IRS Form 1095-A. Let’s dive into what this form is, why it matters, and how to get it, so you can avoid any tax season headaches.
WHERE TO FIND US
Arch Tax Company, Inc.
1 East Erie Street, Suite 525-5358
Chicago, IL 60611
1704 Broadway, Suite 105
Cape Girardeau, MO, 63701
27027 Route 3
Olive Branch, IL, 62969
CONTACT
+1 (844) 556-3073
info@archtaxco.com
