Are you or someone you know an UBER or LYFT driver? Are you aware of the tax deductions that may apply to you? It is important to keep track of all of your expenses that you may incur when doing your ride- sharing jobs (any job for that matter). Check out the list below!
For every mile driven when ride-sharing, you are entitled to 53.5 cents deduction! Keep track!
Did you buy something to help keep your ride clean for customers? This is tax deductible because it is a business expense!
Tolls are indeed tax deducible. If you paid for tolls during ride-sharing or tolls to get to your rider, you can claim it on your taxes. This can also be found in your yearly summaries in your app.
Anytime you have to put gas in your car that has to be used for ride-sharing, that’s tax deductible.
Because you cannot ride share without auto insurance, make sure you include this as well.
Let’s not forget about these! The percentage of the deduction varies because it correlates between the business use and personal use of your vehicle. It is a deduction nonetheless.
Sometimes we have to replace our brakes or have mechanical issues due to ride-sharing. This is a write off!
Don’t forget about these if you had to replace them due to ride-sharing!
And the list goes on! Here are a few more:
– Cellular expenses
– Phone expenses
– Phone accessories
– Car Washes
– Vehicle registration fees
– Interest on car payments
– Treats you may give to your passengers
– Maintenance (i.e: oil change)
– Vehicles repairs
– Roadside Assistance Plans
– Music subscriptions
– Seat covers
– Car mats
– Car depreciation
Be sure to keep track of all expenses, no matter how small. Keep a record of it and provide it to your tax professional at tax time. Even if you don’t know if it is an expense that is deductible, still put it on record and discuss it with your tax professional. Remember to write down everything and keep all receipts!