Rideshare, TLC & delivery app drivers
Taxes for rideshare and delivery drivers in Brooklyn
Driving for Uber, Lyft, DoorDash, Uber Eats, Instacart or a TLC base? You are running a small business — and every mile and expense you track can lower what you owe.
You are self-employed — here's what that means
App drivers are usually independent contractors. That means no tax is taken out of your pay, and you report your income and expenses on Schedule C. On top of income tax, you pay self-employment tax (15.3%) for Social Security and Medicare on your profit — not on everything the app paid you.
The forms you may get
- 1099-K — payments processed by the app (for 2025, apps generally send it when you pass $20,000 and 200 payments)
- 1099-NEC — bonuses, referrals and other pay of $600 or more
- The app's yearly tax summary — shows gross fares, fees the app took out, and online miles
Didn't get a form? You still report all your income. We use your app summaries and bank deposits to get it right.
Expenses that can lower your tax
- Mileage — the standard rate for 2025 is 70 cents a mile, or your actual car costs (gas, insurance, repairs, lease, depreciation). We check which one saves you more.
- Fees and commissions the app took out of your fares
- Phone and data plan (work share), car washes, tolls and parking while working
- TLC license, drug test, defensive driving course and base fees
- Phone mounts, chargers, insulated bags, water and supplies for riders
The secret is records: keep your app trip logs, or use a mileage app. Bring what you have — we help you put it together.
Quarterly taxes
If you expect to owe $1,000 or more for the year, you are usually expected to pay during the year. Next payment: January 15, 2027 (last payment for 2026). Then April 15, June 15 and September 15. We can calculate a safe amount so April has no surprises.
New for 2025 to 2028: tips
Tips riders and customers give you in the app may qualify for the new deduction of up to $25,000 if your work is on the official list of tipped jobs and other rules are met. How the tips deduction works →
What it costs
Minimum fees from our price list. We look at your papers first, and your price is explained and agreed with you before we begin. Our fee is never based on your refund.
| Service | Minimum fee |
|---|---|
| Self-employment (Schedule C), receipts under $10,000 | $150 |
| Schedule C, $10,000 to $50,000 | $250 |
| Schedule C, over $50,000 or more than one business | $400 |
| Base return: Form 1040 + New York, up to 3 W-2s | $175 |
See the full price list → · Every personal and business return includes up to $1 million in audit defense services, paid by us.
Questions
Do I have to file if I only drove part-time?
Usually yes, if your net earnings from self-employment are $400 or more, even if you have a regular job too.
Should I use the mileage rate or actual car costs?
It depends on your car, your miles and your records. We run both ways and use the one that saves you more where the rules allow.
The app took fees out. Am I taxed on the full fare?
Your 1099-K may show the gross amount. The app fees and commissions are business expenses, so they come back off — as long as they are reported correctly.
Can I file if I also have a W-2 job?
Yes. We put your W-2 job and your driving business on the same return.
I didn't pay quarterly taxes. What now?
File anyway and on time. There may be a small penalty, but it is much smaller than the penalty for not filing. We set you up with quarterly amounts for next year.
Talk to us — the first conversation is free
Come to 451 Rockaway Avenue, drop off your papers, or work with us from home through our secure client portal.
More guides: Tips & overtime · Unfiled returns · What to bring
General information, not tax advice for your situation. Rules and limits apply.