Rideshare Driver at $40K

Income: $40,000

Tax Savings: $6,800

Alex, a full-time Uber/Lyft driver in a mid-size city

Alex earns $40,000/year driving for Uber and Lyft. The key is maximizing vehicle deductions—mileage is by far the largest deduction for rideshare drivers.

Deduction Breakdown

Mileage

25,000 business miles × $0.725 (includes deadhead miles)

$18,125

Phone/Data

60% business use of $100/mo plan

$720

Supplies

Phone mounts, chargers, cleaning supplies

$300

Platform Fees

Already deducted from 1099 income

Health Insurance

ACA marketplace plan

$3,600

SEP IRA

Modest retirement contribution

$2,500

Total Deductions

$25,245

Key Takeaways

•Mileage is everything—track every mile including deadhead
•Standard mileage rate includes gas, maintenance, depreciation
•Phone plan is partially deductible based on business use
•Even small retirement contributions help at tax time

Calculate Your Own Savings

AlphaTax tracks your actual income and expenses to calculate personalized tax savings.

Start Free Trial

Related Profession Guides

Rideshare Drivers

AlphaTax Features Used

Mileage Tracker

Standard vs Actual Expense Comparison

Income & Expense Tracker

Complete Financial Picture for Taxes