Being an Uber/Lyft driver can be a very difficult job. The job does have benefits such as flexible scheduling, choosing your own hours, and getting quick money. However, there are many drivers who go out of their way to get a good score and make sure that their vehicle is in great shape. After all, your car is a reflection of the business you’re providing. Due to this, many drivers buy small amenities for their clients in order to boost their driving scores. If you are a driver, have you ever thought about how the things you’re doing can be tax write-offs? As a driver, you have certain tax advantages that you need to take advantage of today!
If not, this list is for you:
- Track your mileage:
As independent drivers, these applications do not tell you where it is you’re going until you’ve picked up your client. This can often mean that the majority of your day is now allotted to one ride due to the miles or traffic. Your miles are an important thing to consider when it comes to your taxes. The gas you spend, mileage, and wear and tear of your vehicle are all important things to consider when you’re a driver.
- Track your expenses associated with the use of your vehicle/phone:
In order to be an Uber/Lyft driver, you need to meet certain requirements. You may get your vehicle inspected and need new tires. This is an expense that is associated with trying to work and become an independent driver. Your vehicle may also need thorough weekly cleanings that can be very costly. If a client drops a drink or food on your seat they can be charged, but this process can take some time. Therefore, costing you money due to the time you had to wait to either receive the money or get your car cleaned.
Another important aspect drivers forget is their phone. You cannot be a driver through an application if you do not have a smartphone. Maybe you decide to buy a new phone? As a driver you need to keep track of how much you are using your phone for this service. This can be considered a write off because you are using it for your business on a day to day basis.
- What do you put in your car to keep users happy?
Many drivers put chargers, water, snacks, and other small amenities in their car for clients to utilize. Even though these may seem like small items, these are all coming out of your pocket and going directly towards your business. Keep track of these items, how often you replace them and make sure to keep these records so you may be able to write them off come tax season. All these items are necessary to keep your clients happy and to hopefully give you a higher rating. Give yourself some credit for the work that you do, and take advantage of these tax tips for Uber/Lyft drivers.
Using these three strategies can help you when tax season comes around. Being a driver can be a very hard job with many small details going into it. Do yourself a favor and keep records of everything that is going into this job. You can also work with a tax strategist that can help you save money and lower your income taxes. Make sure to take times throughout the year to analyze your business and rides, so you can keep improving and taking advantage of tax benefits!
