Uber Driver Taxes in Georgia - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Uber Driver income taxable in Georgia?

Yes, income earned as an Uber driver is absolutely taxable, both at the federal and Georgia state levels. As an independent contractor, you are 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: Schedule C – You’ll report your Uber income and expenses on Schedule C (Profit or Loss From Business) when you file your federal income tax return (Form 1040). This form calculates your net profit (income minus expenses), which is then factored into your adjusted gross income (AGI). It's crucial to keep accurate records of all income and expenses throughout the year.

Georgia Specific Rules: Flat Income Tax – Georgia has a flat income tax rate for 2024. As of late 2024, the rate is 5.49%. Your net profit from Schedule C will be added to your other income, and this total taxable income will be subject to the 5.49% rate. Georgia also allows for standard or itemized deductions, which can reduce your taxable income. You'll file Form 500 to report your Georgia income tax.

Top Tax Write-offs for Uber Drivers

As an Uber 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. You must keep a detailed mileage log documenting the date, purpose (business vs. personal), and miles driven for each trip. You can't use mileage if you've already claimed depreciation on the vehicle.
• Vehicle Expenses (Alternative to Mileage): Instead of mileage, you can deduct the actual expenses of operating your vehicle, such as gas, oil changes, repairs, insurance, registration fees, and depreciation. You'll need meticulous records for this method.
• Uber-Related Software & Apps: Fees paid for ride-hailing apps, GPS navigation apps, and tax preparation software specifically used for your Uber business are deductible.
• Phone Expenses: If you use your personal phone for Uber-related activities (navigation, accepting rides, etc.), you can deduct the percentage of the phone bill attributable to business use. Keep records of your usage.

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 combined 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 that you can deduct one-half of your self-employment tax from your gross income on Form 1040, which helps reduce your overall tax burden. Remember, self-employment tax applies to earnings over $400.

Closing Tip for Georgia 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 spreadsheet to track everything. 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 Georgia tax laws. Proper planning can save you significant money and avoid potential issues with the IRS or the Georgia Department of Revenue.