Can I deduct on Schedule C?

Yes. Independent drivers log proven mileage as Schedule C expense, alongside fuel and maintenance receipts.

IRS standard vs actual expense?

You pick one method per vehicle. Standard mileage is simpler, actual expense can yield more on heavy years.

What counts as business?

The whole shift available to take trips. Deadhead counts; personal lunch break does not.

For rideshare drivers

Tax documentation for Uber and Lyft drivers

Log full-shift mileage (with and without passenger), apply the right rate, and keep your books current.

Rideshare drivers cover more than 200 km a day. Most revenue goes to fuel and maintenance. Documenting mileage is the only way to keep margin positive and file taxes correctly.

Common pains

Deadhead miles — Big chunks of the shift are without passenger. Those kilometers are still deductible business expense.
Daily fuel — Your per-km rate has to cover fuel, maintenance, depreciation, and insurance. Use the IRS standard or your real cost.
Schedule C filing — Drivers report revenue and deduct expenses on Schedule C. The receipt is proof of real expense.

Best practices

Log the full shift — Instead of one receipt per trip, log the full shift (home → return). Cuts volume and raises reliability.
Cross-check with the app — The Uber/Lyft app shows kilometers driven per day. Use it as a benchmark.
Use real cost rate — Calculate your real rate (fuel + maintenance + depreciation ÷ km). Usually US$ 0.55 to US$ 0.70.

Frequently asked questions

Can I deduct on Schedule C?: Yes. Independent drivers log proven mileage as Schedule C expense, alongside fuel and maintenance receipts.
IRS standard vs actual expense?: You pick one method per vehicle. Standard mileage is simpler, actual expense can yield more on heavy years.
What counts as business?: The whole shift available to take trips. Deadhead counts; personal lunch break does not.

Drivers who log the full shift learn that up to 35% of revenue is operating cost — and tune their hours to grow margin.