It is important to know that if you drive from Uber, Doordash, Instacart or any other ride-sharing company, you should consider yourself a contract worker, which really means that you are self employed. Because of this, it’s likely that state and federal taxes are not withdrawn when you receive your paychecks, so it is up to you to calculate how much you need to save for paying your taxes.
Since you are considered self-employed most of your vehicle expenses are business expenses and therefore tax deductible. Here are some things you can get tax deductions on:
Basically, any vehicle upkeep or repair can be a business expense for a tax deduction. Lucky for you, CarAdvise can store all of your maintenance upkeep and repairs on your CarAdvise profile. Just check out your Maintenance History to see how much you’ve spent on car maintenance this year! The best part is you can manually add any other maintenance done, not through CarAdvise, to have all of your maintenance history in one place.
HOT BONUS TIP: If you use your smartphone for your rideshare/gig business, and/or if you buy snacks or drinks for your passengers, are all business expenses and therefore tax deductible.