Lyft Driver Taxes in Georgia - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Lyft Driver income taxable in Georgia?

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

Federal Requirements: You'll report your Lyft 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). Lyft will send you a Form 1099-K detailing your earnings for the year, but it's your responsibility to accurately track all income and expenses, even if they don't appear on the 1099-K.

Georgia Specific Rules: Georgia has a flat income tax rate of 5.49% for the 2024 tax year (filing in 2025). Your net profit from Schedule C will be added to your other income, and this total taxable income will be subject to this flat rate. Georgia also requires you to file a state income tax return (Form 500) to report your earnings.

Top Tax Write-offs for Lyft Drivers

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

• Mileage: This is often the largest deduction. For 2024, the standard mileage rate is 67 cents per business mile driven. Keep a detailed log of all miles driven for Lyft, including the date, starting and ending locations, and business purpose. You can also deduct parking fees and tolls related to your rides.
• 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. This requires meticulous record-keeping and may only be beneficial if your actual expenses exceed the standard mileage deduction.
• Ride-Sharing Apps Fees: Lyft charges fees for using their platform. These fees are deductible as a business expense.
• Phone & Data: If you use your phone for Lyft-related activities (navigation, accepting rides, etc.), you can deduct the portion of your phone bill and data plan that is attributable to business use. Keep records to support this allocation.

The 15.3% Self-Employment Tax Surprise

Because you're self-employed, you're responsible for paying both the employer and employee portions of Social Security and Medicare taxes. This combined tax is called Self-Employment Tax and totals 15.3% (12.4% for Social Security up to the annual wage base, and 2.9% for Medicare). You'll calculate this tax on Schedule SE (Self-Employment Tax). The good news is you can deduct one-half of your self-employment tax from your adjusted gross income on Form 1040, which helps reduce your overall tax burden.

Remember, self-employment tax is only due on earnings over $400.

Closing Tip for Georgia Residents

Tax laws can be complex, and it's easy to miss deductions or make errors. Consider using tax software designed for self-employed individuals or consulting with a qualified tax professional, especially in your first few years as a Lyft driver. Accurate record-keeping throughout the year is crucial for maximizing your deductions and ensuring a smooth tax filing process. Don't wait until the last minute – start organizing your income and expenses now!