Bookkeeping guide
Driver tax bookkeeping: categories to review
Rideshare, taxi, medical transport. If you got a 1099 for this work, here are common categories and review questions; your facts and records determine what qualifies.
Worth knowing
These are common expenses people in this line of work may need to review. Anything marked in orange is an edge case worth raising with a preparer rather than assuming.
Mileage - the big one
Standard mileage and actual vehicle expenses follow different eligibility and record rules. Do not combine the mileage rate with gas, insurance, repairs, depreciation, lease payments, or registration included in that rate. Keep a timely trip log; platform summaries can support reconciliation but do not replace trip purpose and mileage records.
$0.70 / mile 2025 rate
Phone bill (work %)
Only a documented ordinary-and-necessary business share may qualify; the personal share is generally not deductible. PrivateBooks leaves phone bills in Review instead of deducting them in full; only a bill from a carrier's business account gets a suggested Phone & Internet category, which you still confirm. Split each bill on its transaction page: the business share in Phone & Internet, the rest in Personal. Keep the record behind your percentage.
business % of the bill
Snacks & water for riders
Ask whether passenger-only items are ordinary and necessary for your specific business. Keep receipts and business purpose, separate every personal purchase, and let your preparer confirm the Schedule C treatment.
keep receipts tracked
Car loan interest
Interest on the loan for the car you drive for work counts only for its business-use share, even with the mileage rate. Record it as Car Loan Interest and PrivateBooks applies the business share from your Mileage page. The personal part may be claimed elsewhere on your return; confirm that with your preparer and do not deduct the same interest twice.
business % of the interest
Common categories PrivateBooks suggests
Pick Driver during guided setup and PrivateBooks shows these categories mapped to Schedule C lines for review - no chart of accounts to invent. The mapping does not establish eligibility, business-use share, or substantiation:
| Category | Schedule C line |
|---|---|
| Fuel & charging | Line 9 - Car and truck expenses |
| Car washes & cleaning | Line 9 - Car and truck expenses |
| Business parking & tolls | Line 9 - Car and truck expenses (business parking and tolls) |
| Phone mount & car gear | Line 22 - Supplies |
| Rideshare platform fees | Line 10 - Commissions and fees |
| Passenger comforts (water, snacks) | Line 22 - Supplies |
| Phone bill (work %) | Line 27b - Other (phone & internet) |
| Mileage | Line 9 - Car and truck expenses |
| Car insurance | Line 9 - Car and truck expenses |
| Car lease payments | Line 20a - Rent/lease (vehicles) - business share; none with standard mileage |
| Car loan interest | Line 16b - Interest (other) - business share of car-loan interest |
Merchants it recognises automatically
On top of the 533 built-in sorting rules, this pack adds rules for 76 Gas, Arco, Car Wash, Costco Gas, Lyft Driver, Lyft Service Fee, Toll Road, Tollway, Uber *Payout, Uber Service Fee. A matching description gets a suggested bookkeeping category; anything uncertain goes to Review instead of being guessed at. Check and confirm every suggestion under “Suggested categories” (the Schedule C package stays a draft until you do): a merchant match is not proof of business use, eligibility, allocation, or substantiation.
Do you even have to file?
Net earnings from self-employment of $400 or more generally require Schedule SE, but other filing rules can apply below $400. Whether you received a 1099, also have W-2 wages, had withholding, or need estimated payments depends on the full return. Review the official Schedule SE instructions or ask a qualified preparer instead of treating this bookkeeping guide as a filing decision.
See an optional cash-reserve illustration →
Educational pointers, not tax advice. Tax rules change and your situation is specific - worth asking about at tax time. The free IRS-sponsored VITA program helps people under its income threshold at no cost.