Can I deduct my car payment?

Not the payment itself. If you use actual expenses you deduct depreciation and loan interest on the business-use share; if you use the standard mileage rate, depreciation is already built into the rate.

Do I need receipts if I use the standard mileage rate?

You still need the mileage log, plus receipts for anything you deduct separately such as tolls, parking, and supplies.

Are commissions taken by the platform deductible?

Yes. Your 1099 often reports gross fares, so deducting platform fees and commissions prevents you from paying tax on money you never kept.

Rideshare Driver Tax Deductions: The Complete Checklist

Driving for Uber or Lyft makes you self-employed, which means your income arrives on a 1099 and every business cost you can document lowers your tax bill. Mileage is the big one, but drivers routinely miss five or six smaller deductions that add up to real money.

Deduction checklist

Deductible expenses and their Schedule C lines for Rideshare drivers
Expense	Schedule C line	What to keep in mind
Business miles driven	Line 9 — Car and truck expenses	Standard mileage rate covers gas, repairs, insurance, and depreciation. Track every mile, including time spent waiting for a request while logged in.
Phone and data plan (business share)	Line 25 — Utilities	Deduct the percentage of your bill used for driving. Estimate honestly and keep the reasoning.
Phone mount, charger, dash cam	Line 22 — Supplies	Fully deductible if bought for driving.
Water, mints, tissues for passengers	Line 22 — Supplies	Small, frequent, and almost always forgotten.
Car washes and interior cleaning	Line 9 or Line 21	If you use the standard mileage rate, cleaning to keep passenger ratings up is generally still deductible as a separate business expense.
Tolls and parking while driving	Line 24a — Travel	Not covered by the standard mileage rate; deduct separately.
Platform commissions and service fees	Line 10 — Commissions and fees	The gross amount on your 1099 often includes fees you never received — deduct them.
Roadside assistance and vehicle inspections	Line 27a — Other expenses	Deduct the business-use share.

Expense

Schedule C line

What to keep in mind

Business miles driven

Line 9 — Car and truck expenses

Standard mileage rate covers gas, repairs, insurance, and depreciation. Track every mile, including time spent waiting for a request while logged in.

Phone and data plan (business share)

Line 25 — Utilities

Deduct the percentage of your bill used for driving. Estimate honestly and keep the reasoning.

Phone mount, charger, dash cam

Line 22 — Supplies

Fully deductible if bought for driving.

Water, mints, tissues for passengers

Line 22 — Supplies

Small, frequent, and almost always forgotten.

Car washes and interior cleaning

Line 9 or Line 21

If you use the standard mileage rate, cleaning to keep passenger ratings up is generally still deductible as a separate business expense.

Tolls and parking while driving

Line 24a — Travel

Not covered by the standard mileage rate; deduct separately.

Platform commissions and service fees

Line 10 — Commissions and fees

The gross amount on your 1099 often includes fees you never received — deduct them.

Roadside assistance and vehicle inspections

Line 27a — Other expenses

Deduct the business-use share.

Standard mileage or actual expenses?

You choose one method per vehicle. The standard mileage rate is simpler and usually larger for high-mileage drivers in ordinary cars. Actual expenses can win if your vehicle is expensive to run or you drive relatively few miles. If you want the option to switch later, use the standard rate in the first year you use the car for business.

Whichever you pick, the mileage log is non-negotiable — it is the record examiners ask for first.

The mileage most drivers forget

Driving from home to your first pickup area while the app is on.
Repositioning between fares.
Trips to the car wash, mechanic, or airport lot for business reasons.
Miles driven to buy supplies for the car.

What the IRS expects you to keep

For every expense you deduct, you need to be able to show the date, the amount, who you paid, and the business purpose. For travel, meals, and vehicle use the rules are stricter — those are 'listed' expenses where a bank statement alone is not considered adequate proof.

A dated receipt or invoice showing the vendor and amount.
A short note on why the expense was for the business.
For mileage: date, starting point, destination, purpose, and miles driven.
Records kept for at least three years after you file (six if income was significantly under-reported).

DocuSpending stores the original photo alongside the extracted date, vendor, total, tax, and category — so every number on your return traces back to a document you can show.

A 5-minute weekly routine

Log your miles as you go — speak the trip into your phone at the end of a shift.
Photograph gas, car wash, and supply receipts the day you get them.
Once a week, check the categories and fix anything mis-tagged.
At quarter end, export the totals for your estimated payment.

Common questions

This guide is general information, not tax advice. Rules change and your situation may differ — confirm specifics with a qualified tax professional or the current IRS instructions for Schedule C.