Top 5 Rideshare Tax Write-Offs
Disclaimer: I am not a tax accountant. This blog is intended for informational purposes only. And a guide to help organize your taxes. Please seek a professional tax account for specific advice. Links below to IRS sources.
There are a lot of potential rideshare tax write-offs besides the obvious mileage, car payments, vehicle maintenance, or gas fill-ups. And depending on which tax write-off method you choose, you could be leaving a lot of money on the table during tax season. So here is list of the most overlooked rideshare tax write-offs.
Tolls & Parking
If you pay for tolls while driving for rideshare or making deliveries, it is considered 100% tax deductible. Also, if you pay for street or garage parking while driving for rideshare or making deliveries, those expenses are also considered a 100% tax write off. Furthermore, if you pay for long-term parking for your business vehicle, that could be considered a partial or full write-off, but seek a professional for specifics.
Car Washes & Professional Detailing
All car washes, professional detailing, and cleaning supplies are considered tax write-offs. And these expenses are not considered part of “maintenance costs” in any way. You’re providing a service to your passengers by keeping the interior and exterior of your vehicle clean. Therefore, car wash services and cleaning supplies are tax deductible.
And the purchasing of Cleaning supplies include, but are not limited to:
interior cleaner
leather cleaner
glass cleaner
disinfectant wipes
microfiber or paper towels
air fresheners
12-volt car vacuum
and a storage container to store all these products
So, whether you wash and clean your own vehicle, seek professional detailing services, or both, all cleaning supplies and services are tax deductible.
Music Subscriptions
Music subscriptions are considered tax deductible for rideshare drivers. As long as your passengers are enjoying the tunes from your music subscriptions, you’re in the clear. So, pick a music subscription that would also make your time driving around town more enjoyable and start listening!
Here is a list of some of the more popular music subscriptions:
Apple Music
Pandora
Spotify
SiriusXM Satellite Radio
Mobile Phone Accessories
Phone Accessories, such as car chargers and cords, phones cases, and phone mounts, are considered tax deductible for rideshare and delivery drivers. You have to protect the tools that you use for your business, and a phone case provides simple protection for your phone that you’re using during rideshare and deliveries.
Phone mounts provide hands-free safety and are a must-have when using rideshare navigation. Magnetic Phones mounts offer quick disconnects that are very convenient when delivering food or packages. Phone chargers and cords keep yours and your passenger’s phones charged. For example, I offer phone chargers to my passenger on every long ride.
A Cell Phone Purchase and it’s Data Plan.
Cell phones are a must have tool for all rideshare and delivery drivers. The job simply cannot be done without one. So, the data plan and the purchase, lease, or principal payments of a cell phone, are a necessary business expense and therefore tax deductible.
And did you know that Uber has an app for iPads and Android tablets? And Lyft also has an app for Android tablets. I use my android tablet when driving rideshare, as the display is much larger and more convenient to use. And this also frees up my phone. Therefore, its business usage would also be considered tax deductible.
Travel Expenses
If you’re driving rideshare full-time, you’re allowed to deduct travel expenses, like meals and hotel stays! Using these travel write-offs while driving for actual rideshare business is allowed. For example, my market has a beach town that I drive rideshare in during the summer months. And meals and lodging are considered tax deductible in this scenario.
Another scenario would be that you plan on driving rideshare at a popular convention, concert, or festival a few towns over. Again, meals and lodging would be considered tax deductible. And lastly, if you drive a passenger several hours away from where you live and have to grab a hotel room, meals and lodging would also be considered tax deductible.
If that last scenario is profitable or not, that’s up to your situational circumstances. However, if you can think outside the box with travel expense tax write-offs, you can definitely take advantage of mixing business travel with pleasure!
ℹ️SOURCESℹ️
IRS Source for Information on choosing Actual Expenses or Standard Mileage Rate method:
Topic No. 510, Business Use of Car | Internal Revenue Service (irs.gov)
IRS Source for 2022 Standard Mileage Rate Deduction:
