Taxes for Uber, DoorDash and Instacart drivers

You are self-employed

The apps do not withhold taxes from what you earn. So you report your earnings and expenses on Schedule C, like a small business, and pay self-employment tax (15.3%, for Social Security and Medicare) on top of income tax.

If your net earnings from self-employment were $400 or more for the year, you must file a federal return.

Form 1099-K or 1099-NEC: which one do you get?

• Form 1099-K: sent by payment platforms and processors for money paid to you through them. It can show the total charged to customers before the commissions and fees the app kept.
• Form 1099-NEC: sent by a business that paid you as an independent contractor.
• Some apps send one, some the other, and some both. Check each app's annual summary to see how much you earned in total and how much you were charged.

Report all of your income, with or without a form

You must report everything you earned through the apps, tips included, whether or not you received a 1099-K or a 1099-NEC. The form only tells the IRS about some of your payments; the duty to report is yours.

If your 1099-K shows the total before commissions, report that total as income and then deduct the commissions and fees the app kept as an expense.

Your miles: standard rate or actual expenses

For most drivers, the car is the biggest deduction. There are two ways to figure it, and you use one or the other:

• Standard mileage rate: for 2025 it is 70 cents for every business mile. With this rate you do not also deduct gas, repairs or insurance, but you can add business parking and tolls.
• Actual expenses: add up what you spent on the car (gas, repairs, insurance, tires and more) and deduct the share that matches your business use.
• Generally, to use the standard rate for a car you own, you must choose it in the first year you use that car for the business.
• Log your business miles with dates. Many apps show the miles with a passenger or an order, but not always the miles you drive looking for trips or heading back; those can count too.

Other expenses you can deduct

Besides the car, you can deduct other ordinary and necessary costs of your work:

• The part of your phone and data plan you use for work.
• The commissions and service fees the app charges you.
• Insulated bags, chargers, phone mounts and other supplies for the work.
• Water, snacks or other items you offer your passengers.

How to prepare your return

With Vordana Tax you enter your Forms 1099-K and 1099-NEC, your miles and your expenses, and the software figures your vehicle deduction and prepares Schedule C and Schedule SE for you.

Questions