Save Money by Tracking Your Mileage as an Uber Driver
If you’re an Uber driver, keeping track of your mileage can lead to significant savings when tax season rolls around. However, it’s crucial to do this correctly to avoid missing out on deductions or even facing an audit.
Understanding Mileage Deductions
As an independent contractor, you’re eligible to deduct business-related miles driven while delivering. This includes:
- Trips to pick up orders
- Delivering orders
- Driving to hot spots
It’s important to note that personal miles—such as trips to the store or commuting home—cannot be deducted.
The Best Ways to Track Your Mileage
The easiest way to monitor your mileage is through a mileage tracking app. Popular options like Everland, Stride, or Mile IQ will automatically log your trips and keep your personal and business miles separate. This method is particularly beneficial if the IRS requests proof of your mileage.
Alternatively, you can manually record your mileage in a notebook. While this method can be effective, it may be less organized compared to using an app.
IRS Mileage Deduction Rate for 2025
For the tax year 2025, the IRS standard mileage deduction rate is expected to be updated, but historically it hovers around 65 cents per mile. To give you an idea of potential savings, if you drive 1,000 miles for Uber Eats, you could deduct approximately $650 from your taxable income.
When filing your taxes, report this mileage on Schedule C of your tax return, specifically in the car and truck expenses section. It’s worth mentioning that you can still qualify for this deduction even if you lease or finance your car.
Uber’s Mileage Tracking Limitations
It’s important to understand that Uber does not track all your miles. They provide only an estimate of delivery miles, which means it’s up to you to record everything accurately.
Conclusion
Maintaining good mileage records can substantially benefit your finances as an Uber driver. If this guide helped clarify how to effectively track and write off your mileage, please share this article with fellow drivers and subscribe for more tips to save money and enhance your driving experience.
