Uber Driver Taxes in Delaware - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Uber Driver income taxable in Delaware?

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

Federal Requirements: You'll report your Uber income and expenses on Schedule C (Profit or Loss From Business), which is filed with your Form 1040. This form calculates your net profit (income minus expenses). The official 2024 standard mileage rate for business use is 67 cents per mile. You can choose to deduct either actual expenses or the standard mileage rate – generally, the standard mileage rate is simpler and often results in a larger deduction, especially if you have significant vehicle expenses. Keep meticulous records of your mileage!

Delaware Specific Rules: Delaware has a graduated income tax system. This means the tax rate you pay increases as your income increases. For the 2024 tax year (filing in 2025), your Uber income, after deducting business expenses on Schedule C, will be added to your other income (if any) and taxed according to the Delaware tax brackets. You'll file this income on Delaware Form 100. Delaware also offers various credits and deductions, so it's worth exploring those as well.

Top Tax Write-offs for Uber Drivers

• Mileage: As mentioned, the 67 cents per mile (for 2024) is a significant deduction. Track all business miles driven – from when you log into the Uber app until you log out, even if you don't have a passenger.
• Vehicle Expenses (Alternative to Mileage): If you choose not to use the standard mileage rate, you can deduct actual vehicle expenses like gas, oil changes, repairs, insurance, registration fees, and depreciation. Keep all receipts!
• Uber App Fees & Subscriptions: Any fees paid directly to Uber, as well as the cost of any subscription services used specifically for driving (e.g., tax preparation software tailored for gig workers, phone data plans used primarily for Uber), 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 by the 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 combined 15.3% (12.4% for Social Security up to the annual wage base, and 2.9% for Medicare). You report this on Schedule SE (Self-Employment Tax). The good news is that you can deduct one-half of your self-employment tax from your adjusted gross income on Form 1040, which helps reduce your overall tax liability.

Remember, self-employment tax applies to earnings over $400.

Closing Tip for Delaware Residents

Navigating taxes as an Uber driver can be complex. I strongly recommend keeping detailed records of all income and expenses throughout the year. Consider using accounting software or a dedicated app designed for gig workers to simplify tracking. Don't hesitate to consult with a qualified tax professional – like myself – to ensure you're taking all eligible deductions and complying with both federal and Delaware tax laws. Proper planning can save you significant money and avoid potential issues with the IRS or the Delaware Division of Revenue.