Lyft Driver Taxes in Florida - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Lyft Driver income taxable in Florida?

Yes, your income as a Lyft driver is taxable, but the specifics are a bit different in Florida than in many other states. The federal government taxes income earned through driving for Lyft as self-employment income. You'll report this income on Schedule C (Profit or Loss from Business) when you file your federal income tax return (Form 1040). This means you'll calculate your gross income from Lyft, then subtract your business expenses to arrive at your net profit. That net profit is then added to your other income (like wages from a traditional job) to determine your overall taxable income.

The good news for Florida residents is that Florida has no state income tax. This means you won't need to file a state income tax return or pay state income tax on your Lyft earnings. However, the federal tax obligations still apply.

Top Tax Write-offs for Lyft Drivers

As a Lyft driver, you're considered self-employed, which means you can deduct many business expenses to lower your taxable income. Here are some key deductions:

• Mileage: This is often the biggest deduction! For 2024, the standard mileage rate is 67 cents per business mile driven. Keep a detailed log of all miles driven for Lyft (from the time you open the app until you end your last ride) using an app or a physical logbook.
• Vehicle Expenses (Alternative to Mileage): Instead of the standard mileage rate, you can deduct the actual expenses of operating your vehicle, such as gas, oil changes, repairs, insurance, registration fees, and depreciation. You must choose one method (mileage or actual expenses) and be consistent.
• Lyft-Related Software & Apps: Expenses for apps or software used specifically for 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 Lyft driving. This is typically calculated based on the percentage of time you use your phone for Lyft activities.

The 15.3% Self-Employment Tax Surprise

Many drivers are surprised to learn about self-employment tax. When you work for an employer, they pay half of your Social Security and Medicare taxes. As a self-employed individual, you're responsible for both the employer and employee portions. This combined tax is 15.3% (12.4% for Social Security and 2.9% for Medicare). You'll calculate this tax on Schedule SE (Self-Employment Tax). However, you only pay self-employment tax on your net earnings after subtracting your business expenses. Also, you don't pay self-employment tax on the portion of your earnings that exceeds the Social Security wage base (which changes annually – for 2024, it's $168,600). You can deduct one-half of your self-employment tax from your gross income on Form 1040.

Closing Tip for Florida Residents

As a Florida resident, you benefit from not having state income tax. However, diligent record-keeping is crucial to maximize your federal tax deductions and minimize your tax liability. Consider using accounting software or working with a tax professional to ensure you're taking advantage of all eligible deductions. Don't wait until the last minute – start organizing your records now for a smoother tax filing experience in 2025!