2020 Rideshare Driver Tax Guide

We may receive a referral fee for recommending some of the products, apps or services listed on this website.

2020 Tax Tips for Uber and Lyft Drivers
Many people are turning to rideshare companies such as Uber or Lyft as a great way to earn extra money. Of course, rideshare driving can also be a full-time gig for motivated drivers.

One of the reasons why this work is so attractive is that you don’t work for the rideshare company. Instead, you are your boss, and you are subcontracting out services to the rideshare company. Because you are considered an independent contractor, no taxes are taken out of your payouts.

The bad news, though, is that you can be surprised by a big tax bill if you don’t make estimated tax payments. Talk with a tax advisor, who can help you make estimated tax payments during the year. Let’s explore how to minimize the tax burden that rideshare drivers often face.

A great way to lower your tax bill is to get every deduction and credit that you are legally entitled to as a small business owner. There are many deductions and credits that drivers are often unaware of.

Related posts: