Tax Deduction Example for Ride Sharing

Outside of the vehicle (see the section on deducting expenses associated with cars), there are other expenses that you can deduct as well. Since you use your phone for work, you can deduct a portion of your cell phone bill. However, you can only deduct the percentage of the time that you’re using it for work (i.e. if your bill is $100 per month, and you calculate that 40% of your phone use is for work purposes, you could deduct $40 per month). As discussed earlier, the IRS can challenge any of your deductions so you have to be able to provide supporting evidence that the expenses are for legitimate business purposes. Other deductible expenses for an Uber driver include: water, snacks, and amenities for customers, business taxes and licenses, city and airport fees, tolls, EZ-pass, floor mats, and other supplies used for your jobs.