Taxes for Uber, DoorDash and Instacart Drivers: A Plain-English Guide

Taxes for Uber, DoorDash and Instacart drivers explained by Robert Allen Bautista, Kansas City tax preparer

Driving for Uber, Lyft, DoorDash, Instacart or Amazon Flex makes you an independent contractor, which means you run a small business, whether it feels like one or not. Here is what gig drivers need to know to file correctly and keep more of what they earn.

1. You are self-employed

No one withholds tax from your gig pay. You report your earnings and expenses on Schedule C, pay income tax on the profit, and pay 15.3% self-employment tax on about 92.35% of it. I explain that math in How Self-Employment Tax Works, Step by Step.

2. Report all of your income, form or no form

Platforms may send a Form 1099-NEC or 1099-K, or nothing at all if you fall under the reporting thresholds. All of your earnings are taxable either way. Use the annual earnings summary in each app as your starting point, and remember the gross amounts on a 1099-K can include fees the platform kept, which you can deduct.

3. Mileage is usually your biggest deduction

  • Most drivers use the IRS standard mileage rate, which covers gas, maintenance, insurance and depreciation in one number (check the IRS site for the current year's rate).
  • Log business miles as you go: trips to pickups, deliveries and passenger rides. An app that tracks automatically makes this painless.
  • Personal errands do not count, even if the app is open.
  • Parking and tolls for business trips are deductible on top of mileage; parking tickets are not.

For the choice between mileage and actual expenses, see Standard Mileage or Actual Expenses?

4. Other deductions drivers miss

  • The business-use share of your phone and data plan
  • Insulated bags, phone mounts, chargers and car cleaning supplies
  • Platform service fees and commissions included in your gross pay
  • Roadside assistance and car washes used for the work

5. Tips

Tips are income. Under the 2025 federal tax law, some workers in occupations that customarily receive tips may qualify for a deduction for qualified tips through 2028, subject to income limits. Whether your gig work qualifies depends on IRS guidance for your occupation, so ask your preparer before assuming it applies.

6. Pay quarterly, or save every week

Because nothing is withheld, set aside 20 to 30 percent of each payout and make estimated payments in April, June, September and January. If you also have a W-2 job, raising your withholding there can cover your gig taxes instead.

7. Keep simple records

Download each app's annual summary, keep your mileage log, and save receipts for supplies. Those three things answer most questions if the IRS ever asks.

Official IRS sources

This article is general information, not tax advice for your specific situation.

Related guides

About the author

Robert Allen Bautista is a tax preparer and accountant in Kansas City. He spent four years at PwC in IT audit and tax, served as Chief Accountant at a CPA firm, holds an M.S. in Accounting, and is a CPA candidate. He has worked with 350-plus individual and small business clients and writes plain-English tax guides in English and Spanish. More about Robert · Website · LinkedIn 

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