Uber Driver Taxes in Connecticut - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Uber Driver income taxable in Connecticut?

Yes, income earned as an Uber driver is absolutely taxable, both at the federal and Connecticut state levels. As an independent contractor, you are considered self-employed by both the IRS and the State of Connecticut. This means you're responsible for reporting your earnings and paying all applicable taxes.

Federal Requirements (Schedule C): You will report your Uber income and expenses on Schedule C (Profit or Loss From Business) of Form 1040. This form calculates your net profit (income minus expenses). It’s crucial to keep detailed records of all income received from Uber and all business-related expenses. The IRS requires accurate reporting, and good records are essential if you are ever audited.

Connecticut Specific Rules: Connecticut has a graduated income tax system. This means the tax rate you pay increases as your income increases. Your Uber net profit (from Schedule C) will be added to your other income (e.g., from a W-2 job, if applicable) to determine your total taxable income for Connecticut. Connecticut then applies its graduated tax brackets to calculate your state income tax liability. You'll file Form CT-1040 to report your Connecticut income tax.

Top Tax Write-offs for Uber Drivers

As a self-employed Uber driver, you can significantly reduce your tax liability by taking advantage of available deductions. Here are some key write-offs:

• Mileage: This is often the largest deduction. For 2024, the standard mileage rate is 67 cents per mile for business use. You must keep a detailed mileage log documenting the date, purpose (Uber trip), and miles driven. You can choose to deduct actual expenses (gas, oil, repairs, etc.) or the standard mileage rate – generally, the standard mileage rate is more beneficial.
• Vehicle Expenses (if not using standard mileage): If you choose to deduct actual expenses instead of mileage, you can deduct costs like gas, oil changes, repairs, maintenance, insurance, registration fees, and depreciation (or lease payments). Keep all receipts!
• Uber-Related Software & Apps: Expenses for apps or software directly used for Uber driving (e.g., tax tracking apps, GPS navigation apps beyond basic smartphone functionality) are deductible.
• Phone Expenses: You can deduct the portion of your cell phone bill that is directly related to your Uber driving activities. This is typically calculated based on the percentage of time you use your phone for Uber work.

The 15.3% Self-Employment Tax Surprise

Many Uber drivers are surprised to learn about self-employment tax. When you're an employee, your employer pays half of your Social Security and Medicare taxes. As a self-employed individual, you're responsible for both the employer and employee portions – a total of 15.3%.

You'll calculate this tax on Schedule SE (Self-Employment Tax) of Form 1040. The good news is you can deduct one-half of your self-employment tax from your adjusted gross income (AGI) on Form 1040, which helps reduce your overall tax burden. Self-employment tax applies to net earnings over $400.

Closing Tip for Connecticut Residents

Navigating taxes as an Uber driver can be complex. I strongly recommend keeping meticulous records throughout the year – income statements from Uber, mileage logs, and receipts for all expenses. Consider using accounting software designed for self-employed individuals. Finally, don't hesitate to consult with a qualified tax professional (like myself!) to ensure you're maximizing your deductions and complying with all federal and Connecticut tax laws. Proper planning can save you significant money and stress during tax season.