NEW | Uber Eats Driver Tax Tips (2025)

Key Uber Eats Driver Tax Tips for 2025

Navigating taxes as an Uber Eats driver can be challenging. Here are some essential tips to help you save money and stay compliant with the IRS in 2025.

Track All Your Expenses

One of the most critical steps you can take is to track all your expenses. This includes:

• Gas
• Car maintenance
• Phone bill
• Parking fees

If you incur these costs while making deliveries, be sure to log them. Consider using a mileage tracker app and keep all receipts on hand. Every little expense adds up and can make a significant difference when it’s time to deduct.

Know Your Mileage Deduction

In 2025, the IRS updates the standard mileage rate, which is crucial for Uber Eats drivers. Remember, you can deduct this rate for every mile driven for work-related purposes, including trips:

• To the restaurant
• To the customer
• Home after your last delivery

Keeping accurate records of your mileage will ensure you take full advantage of this deduction.

Save for Taxes All Year

Unlike traditional employees, Uber does not withhold taxes from your earnings. To avoid an unpleasant surprise during tax season, set aside around 20-30% of your weekly pay for taxes. This proactive approach can save you from financial stress when it’s time to file.

Use Schedule C and Form 1099

As a self-employed individual, you’ll need to use Schedule C when filing your taxes. If you earn over $600, Uber will send you a 1099 form. Don’t overlook this obligation—failing to file can lead to penalties. Understanding self-employment tax is also crucial for your financial planning.

Consider Quarterly Tax Payments

If you’re making substantial earnings with Uber Eats, the IRS expects you to make tax payments quarterly rather than just once a year. Utilize IRS Form 1040-ES to estimate and pay your taxes in advance to avoid penalties.

By following these tips, you can keep more money in your pocket and stay compliant with the IRS. If you found these 2025 Uber Eats tax tips helpful, don’t forget to drop a like, follow for more gig economy advice, and share this information with fellow drivers who may benefit.