I Work For a Ride Share Company, How Can I Get My Biggest Tax Refund?

If you’re new to being a rideshare driver, you may not know what to do with the IRS forms you receive once the year is over. Typically, your earnings will be reported on the following forms:

• 1099-K from a third party provider if you received more than $20,000 in customer payments and had more than 200 transactions 
• 1099-NEC from the ride share company if you earned more than $2,000 starting in tax year 2026 (previous threshold was $600)

However, because the forms won’t capture the many tax deductions you can take as a driver (which can lower your taxes significantly), here are some of the common business expenses you can claim.

Travel

One of your biggest tax deductions will be for business mileage. For tax 2026, the mileage rate is 72.5 cents per mile through June 30 and 76 cents per mile from July 1 onward.  Some rideshare companies will record your in-ride and out-of-ride miles. This can help you calculate your total tax deduction for mileage. You should also track your own mileage as well, since the rideshare app may not capture everything that is deductible. You can easily and automatically track your business mileage deduction year-round when you use the Quickbooks Self Employed app.                                                      

If your auto expenses are high, another option is to deduct the business use percentage of your actual car expenses, such as  oil changes, gasoline, car insurance, maintenance and repairs, lease payments, and depreciation. 

Note: If you want to use the standard mileage rate, you have to use it in the first year the car is used for business. Only then can you switch between the standard mileage rate and the actual expense method.  

Cell phone

Since all rideshare companies communicate with you through their mobile app,  your phone is a business expense. You are able to deduct the business use percentage cost of a new phone, as well as your service agreement.If you use it half the time, then you can claim 50% of the cost for the business. If you purchased any accessories, like a car mount or spare charging cables, those accessories are also tax deductible.

Passenger supplies, treats, and goodies

Did you stock your car with drinks, snacks, or other goodies that you give to your riders? If so, those snacks and drinks are tax-deductible expenses (as long as you offer them exclusively to your riders).

If you purchased extra protective supplies like masks and hand sanitizer for your riders, those are also tax-deductible expenses.

Fees and tolls

If you have to pay for any fees or tolls associated with your driving that aren’t reimbursed through the rideshare company, those expenses are also tax deductible.

For example, if you have to pay a toll and the rider doesn’t reimburse you, then you can claim it as an expense. However, if the rideshare company reimbursed you because their app detected you went through a toll, then you can’t claim it.

Personal grooming and uniforms

Personal grooming expenses, like a haircut, and clothing are not tax deductible. Personal grooming is never tax-deductible and rideshare companies do not require a uniform, so you can’t claim work clothes as an expense. This also means dry cleaning is out, too.

Driving for a rideshare company can be a great way to earn income. And learning about all the business deductions is a great way to keep more of it at tax time.

Don’t worry about knowing these tax laws. TurboTax Premium will ask simple questions about you and your business and give you the business and personal tax deductions you are eligible for based on your entries. You can also use QuickBooks Self-Employed to track your income, expenses, and mileage year-round and then easily export the information to your TurboTax Self-Employed tax return.

Meet with a TurboTax expert who can prepare, sign and file your taxes, so you can be 100% confident your taxes are done right. Start TurboTax Expert Full Service today, in English or Spanish, and get your taxes done and off your mind.