As a rideshare driver, knowing the tax deductions available to you can make a significant difference when filing your federal tax returns. Here are some key deductions you should consider

Mileage Deduction

If you drive a lot for your rideshare job, the mileage deduction can be highly beneficial. For 2024, you can deduct 67 cents per business mile driven. This can quickly add up, so keep precise mileage records. Alternatively, you can deduct actual maintenance and operational expenses instead of mileage. We’ll cover this alternative in a future post.

Insurance Premiums

You can deduct the cost of your rideshare insurance premiums, including both liability and comprehensive coverage, from your taxes.

Phone and Internet Expenses

Since your phone and internet are essential for your work, you can deduct a portion of these costs from your taxes. This includes your phone plan and any work-related accessories.

Health Insurance Premiums

As a self-employed individual, you can deduct your health insurance premiums. This can lead to substantial savings, particularly if you have a high-deductible plan.

Snacks and Drinks for Passengers

Providing snacks and drinks for your passengers is a common practice among rideshare drivers. These expenses can be deducted as a business expense, just remember to keep all receipts and records of your purchases.

We’ll explore many more tax-saving tips in future posts. By utilizing these deductions, you can maximize your tax savings and keep more of your earnings.