Can Drivers Claim Gas Expenses on Taxes?
Taxi drivers can claim fuel. Uber drivers can claim gas expenses on taxes as long as they keep records. Use tax software or tax professional for advice on claiming expenses. File taxes using Schedule C form to report income and expenses. Gas expenses are reported as part of total expenses. Rules vary depending on circumstances. Consult a tax professional to ensure eligible expenses are claimed.
Can Taxi Drivers Deduct Mileage?
Self-employed taxi drivers can deduct business expenses on Schedule C. Mileage expense is a significant expense for a taxi driver. Luckily it’s deductible. Taxi drivers can calculate actual vehicle expenses incurred for work like gas, registration, insurance, maintenance, repairs, lease payments and depreciation. It can be burdensome to keep track of all these individual expenses.
Mileage Deduction for Self-Employed Individuals
The IRS allows self-employed individuals to deduct non-commuting business mileage. Auto insurance based on business use of your vehicle is deductible as an actual expense. Costs like car washes and AAA memberships related to business are deductible as ordinary expenses. Parking fees, tolls and maintenance based on business use of vehicle are deductible.
Taxi drivers can claim mileage allowances of 40p for the first 10,000 miles and 25p per mile after as an alternative to vehicle running costs. You can’t claim both.
Analysis shows a typical taxi vehicle travels 154 miles per day and operates 280 days a year.
Many Uber drivers have proven it’s possible to make $1000 a week. You can deduct miles on the way to the first passenger, between passengers, and on the way home from the last passenger trip. Multiply total mileage by the standard mileage rate to find the deductible amount.
If self-employed, regardless if you own or lease your car, you can deduct miles driven related to your business. You can check vehicles and mileage article for more information.
Using a taxi for errands can add up. But if the reason for a taxi ride meets criteria, the cost of the ride could be an eligible tax deduction.
Uber drivers should take advantage of the standard mileage rate tax deduction. Other top deductions: parking fees, tolls, and interest paid on a vehicle loan.