Uber Driver Taxes in Idaho - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Uber Driver income taxable in Idaho?

Yes, income earned as an Uber driver is absolutely taxable, both at the federal and Idaho state levels. The IRS considers you self-employed, not an employee of Uber. 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). Even if you don't feel like you made a profit, you must file Schedule C if your gross income from Uber exceeds $400.

Idaho Specific Rules: Idaho has a flat income tax rate of 5.8% for 2024. Your net profit from Schedule C will be added to your other income, and this total taxable income will be subject to the 5.8% rate. Idaho also requires you to file a state income tax return (Form 40) if your income exceeds certain thresholds, which Uber income will likely meet.

Top Tax Write-offs for Uber Drivers

As a self-employed Uber driver, you can significantly reduce your tax liability by claiming eligible business expenses. Here are some key deductions:

• 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 Uber, including the date, starting and ending locations, and business purpose. You can use apps like Stride or Everlance to help with this.
• Vehicle Expenses (Alternative to Mileage): Instead of the standard mileage rate, you can deduct the actual expenses of operating your vehicle (gas, oil changes, repairs, insurance, registration, depreciation). This requires meticulous record-keeping and is often less beneficial than the mileage rate, but it's worth comparing.
• Uber-Related Fees & Commissions: The fees Uber charges you (the percentage they take from each fare) are deductible.
• Phone & Data Expenses: You can deduct the portion of your cell phone bill and data plan that is used for Uber driving. Keep records showing business use versus personal use.

The 15.3% Self-Employment Tax Surprise

Because you're self-employed, you're responsible for both the employer and employee portions of Social Security and Medicare taxes. This combined tax is called Self-Employment Tax and is currently 15.3% (12.4% for Social Security up to the annual wage base, and 2.9% for Medicare). You'll calculate this on Schedule SE (Self-Employment Tax).

The good news is you get to deduct one-half of your self-employment tax from your adjusted gross income on Form 1040, which reduces your overall income tax liability. Don't be alarmed when you see the 15.3% figure – it's a normal part of being self-employed!

Closing Tip for Idaho Residents

Tax laws can be complex, and this guide provides general information. I strongly recommend keeping excellent records of all your income and expenses throughout the year. Consider using accounting software or working with a qualified tax professional (like myself!) to ensure you're taking all the deductions you're entitled to and complying with both federal and Idaho state tax regulations. Proactive tax planning can save you significant money and stress during filing season. Good luck and safe driving!