![]() Once you know the percent of your total annual mileage that was spent on business-related driving, you multiply that by your interest paid for the year (available on your itemized bill). Use Gridwise to keep track of your rideshare driving miles compared to your total miles driven in a year. ![]() If you’re paying on a car loan, you can deduct a portion of the interest-based on how much is used for your business and how many miles are driven. Passenger amenitiesĪre you bumping up your rating by enticing passengers with refreshments? The cost of bottled water, snacks, candy, soda, and other treats is deductible as long as you’re using them exclusively for your business. If you’re using your dashcam for protecting yourself in your business, you can deduct the entire cost. It will protect you from not only dishonest passengers, but also inappropriate or dangerous passengers.Īnd, with COVID-19 restrictions, the dash cam can provide evidence that you and/or your passengers are complying with masking and distance requirements. Dash camĪs a rideshare driver, you should absolutely have a dashcam. So if you use Spotify, Apple Music, or Tidal 30 percent of the time for your rideshare business, then you can deduct 30 percent of the cost. Paid apps and servicesĭid you buy Spotify for your rideshare business? If so, expense it!ĭrivers can deduct paid apps that they use for their business according to usage. You can deduct phone accessories such chargers, phone holders, cases, dash mounts, and auxiliary cords that are deemed “ordinary and necessary” for your business. On the other hand, if you upgraded to the newest iPhone and you only use it for business 50 percent of the time, you can only deduct 50 percent of the cost. Here are some examples… Cell phoneĭid you buy a second phone for your rideshare business? If so, you can deduct the cost of the phone according to how much you use it for your business.įor example, if you bought a new phone for your business, and use it exclusively for your business, it is 100 percent deductible. Many drivers assume that mileage is all they can write off on their taxes, but that’s a misconception-and one that can wind up costing you a lot of money! There are plenty of expenses you can deduct as a driver. Using this method, you’ll track your business mileage and simply multiply the total number by the set tax rate for that tax year. The easiest way to apply deductions as a rideshare driver is using the standard deduction method. Let’s look at the differences between them. There are two ways that drivers can take deductions: the standard method, and the actual costs method. ![]() You’ll be able to use all this information for your tax forms. ![]() We’ll give you some ideas for categories a little later on in this article, but before we get there, we want you to understand what’s so great about these Gridwise features: You can create your categories and enter the expenses as they occur, eliminating the need to create spreadsheets or calculate long columns of number at the last minute, trying to get in under the wire for tax time. Gridwise will also help you keep accurate records of your expenses. What’s more, Gridwise will record earnings from all the services you use… automatically! All you need to do is link your accounts to Gridwise, and start driving. The results will be displayed on slick and informative graphs like these: You can view daily, weekly, and yearly results, including your total earnings, and the total number of rides given. In addition to mileage, Gridwise also helps you track your earnings and the expenses you incur outside of mileage. If you say “yes,” you’ll get sent to the app’s screen to begin tracking. Also, when you have Gridwise, each time you drive you’ll get a notification asking if you’re on a shift. Open your Gridwise app and you’ll see a button at the top of the screen that says “Go Online.” Pressing that button starts a driving session during which your miles will be tracked. What about the miles you log between trips? You need to track, and deduct them, too.įortunately, that’s something you can easily do, if you have an easy to use and accurate mileage tracker – like Gridwise! Keep a detailed mileage logįor the 2021 tax year, the IRS allows rideshare drivers to deduct 56 cents for each mile driven during a shift-but you have to track your miles or you can’t take advantage of the deduction.Īnd, just so you know, the mileage tracked by your driving apps don’t count all your mileage they just cover your trips. The Basics of Doing Taxes as an Uber or Lyft Driverīefore we dive into our rideshare driver tax deduction guide, let’s go over a few things that you should be doing throughout the year to make taxes a bit easier at tax time.
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