Deduction guide
Driver taxes: what you can actually deduct
Rideshare, taxi, medical transport. If you got a 1099 for this work, here's what counts — and what PrivateBooks sets up for you automatically.
Worth knowing
These are the write-offs people in this line of work most often miss — or claim wrongly. Anything marked in orange is an edge case worth raising with a preparer rather than assuming.
Mileage — the big one
Most drivers come out ahead deducting mileage instead of gas — and you can't do both. Taking mileage means gas, insurance, and repairs are already inside the rate. Didn't track all year? Your Uber/Lyft year-end tax summary lists your online miles — start from those.
$0.70 / mile 2025 rate
Phone bill (work %)
The share of your phone you use for the driver app counts. Pick an honest percentage — PrivateBooks applies it for you.
business % of the bill
Snacks & water for riders
Small comforts you buy for passengers are deductible supplies. Keep the receipts.
keep receipts tracked
Car loan interest
If you finance the car, the business share of the interest may count separately from mileage method rules — worth a question at tax time.
at tax time edge case
What PrivateBooks pre-loads
Pick Driver during guided setup and your books start with these categories, each already mapped to its real Schedule C line — no chart of accounts to invent:
| Category | Schedule C line |
|---|---|
| Fuel & charging | Line 9 — Car and truck expenses |
| Car washes & cleaning | Line 9 — Car and truck expenses |
| Tolls & parking | Line 24a — Travel |
| 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 |
Merchants it recognises automatically
On top of the 578 built-in sorting rules, this pack adds rules for 76 Gas, Arco, Car Wash, Costco Gas, Lyft Service Fee, Toll, Uber *Payout, Uber Service Fee — so those transactions land in the right category the moment you import a statement. Anything it isn't sure about goes to Review instead of being guessed at.
Do you even have to file?
If you netted $400 or more from self-employment in a year, you generally have to file and pay self-employment tax — even if nobody sent you a 1099, and even if you also have a W-2 job. Nothing was withheld from this income, which is why setting money aside matters.
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.