You list everything possible individualized (including ones business miles) add it all up and hand it over to your tax accountant and they figure everything out for you. Tell them about anything that occurred in your life last year.

They find you deductions you never knew you had coming. Got a $60,000 rollover every year deduction for living through a hurricane and my rental cottage got wiped out. It wasn't even mine. 😁

Trust me a good tax accountant is well worth the few hundred dollars a year they want.

Now if one told Uber/Lyft they are a sole proprietor then each business mile recorded (not only the online miles Uber/Lyft say) by you personally gets .70 per mile tax deduction off what one would ordinarily have to pay in taxes on ones earnings.

Other types of businesses filings are lot more complicated concerning vehicle and other cost deductions.

So I don't even bother because the time it takes me to figure out my taxes and risk get things wrong causing an audit, I can make three times what the tax accountant makes in the same amount of time.

Plus the backing of the tax accountant when there is an audit is extremely valuable.

So unless your a tax accountant already with up to date information I would just stick with driving and let the seasoned professionals handle it.

I've never had to pay any Federal taxes ever since driving for Uber over 5 years now, sure Social Security and Medicaid but I've benefited from both when I died and had surgery to bring me back. So it's more that paid for itself already. I get $600+ a month now in SSDI because I'm permanently disabled.

 

Mileage deduction. 70 cent a mile for 2025.
Can you deduct car registration?
Can you deduct car insurance?

Unless I'm mistaken the registration and insurance are included in the mileage deduction.

You're better off doing the mileage deduction than trying to itemize.

 

You're better off doing the mileage deduction than trying to itemize.

Oh definitely because one comes out ahead usually at .70 a mile flat rate, and if not then the extra costs (like repairs etc) that are more than that then are used in an itemized plan. The .70 a mile covers quite a bit but just in case each category should be totaled for the year for the accountant to use or not use. They pick which one saves the most money either the flat rate deduction or the itemized one.

This way if ones real costs are lower than .70 cents a mile, the driver benefits over using the itemized plan.

However one has to claim as a sole proprietor, not as a corporation, LLC or whatever to get the .70 flat rate deduction.

Why I suggest one just total up each category and hand it over to the accountant. Even water and candy are deductible.

 

I think if the S corp owns the vehicle then you can claim the mileage đeduction

 

Yes to phone plan, phone accessories, etc. I purchased the Samsung ZFold4 back in 2023 and was able to deduct about 80% of the cost. Traded it in for the Zfold7 this year and plan on doing the same.

Also, accounting or business services and snacks can be itemized outside of the standard $0.70 deduction. But as far as vehicle expenses, you're better off taking the mileage deduction unless you're driving around a G-wagon or Escalade. Or Abrams tank.

 

I deduct Uber fees in addition to mileage and phone service. My adjusted gross income (AGI) was $8900 last year, and I essentially paid no taxes.

 

Definitely. If you use TurboTax, they prompt you to enter that info. I can't imagine the poor (dumb) drivers that don't deduct that, and simply report the total fares from pax as the net pay on their taxes 😱

 

You might wanna' post this on the taxes board. There useta' be a coupla' tax pros on there what useta' answer your QS. The tax pros. are actually qualified to tell you tax stuff. Unlike most U & L drivers.