Why rideshare drivers have the biggest mileage deduction
Uber and Lyft drivers typically log more business miles than any other gig — including the miles driven to pick up a passenger, not just miles with someone in the car. At 72.5¢/mile in 2026, a driver doing 20,000 miles a year has a $14,500 deduction before anything else, which is often larger than every other expense combined.
Deductions rideshare drivers often miss
- Mileage from the second you go "online," not just from pickup to drop-off.
- Phone plan (business-use percentage) — you're staring at the app the whole shift.
- Car cleaning and detailing required to keep your rating up.
- Phone mount, charger cables, dash cam, in-car amenities (water, mints, chargers for passengers).
- Rideshare-specific insurance riders if you carry one.
- Tolls and airport fees not reimbursed by the platform.
You can't deduct both standard mileage and actual car expenses (gas, maintenance, depreciation) in the same year for the same vehicle — pick standard mileage unless you have an unusually expensive vehicle and have tracked actual costs carefully.
FAQ
Do Uber and Lyft report my earnings to the IRS?
Yes — you'll get a 1099-K and/or 1099-NEC depending on how much you earned and from which platform. Either way, all of it counts as self-employment income.
I drive for both Uber and Lyft. Do I file two separate businesses?
No, combine the income and mileage from both into one self-employment total — it's the same line of work.
Should I track mileage with an app or a notebook?
An automatic mileage tracking app is much safer for an IRS audit than reconstructing trips later. Whatever you use, keep records — the IRS can ask for them.