Lyft Driver Taxes in Kansas - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Lyft Driver income taxable in Kansas?

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

Federal Taxes: You'll report your Lyft income on Schedule C (Profit or Loss from Business) as part of your Form 1040. This form allows you to deduct business expenses (more on that below) to arrive at your taxable profit. The official 2024 standard mileage rate is 67 cents per mile. Keep meticulous records of your mileage!

Kansas State Taxes: Kansas has a graduated income tax system. This means the tax rate you pay increases as your income increases. Your Lyft income, after deducting allowable expenses, will be added to your other income sources (like a W-2 job, if applicable) to determine your total taxable income and your corresponding tax bracket. You'll use Kansas Form K-40 to file your state income tax return.

Top Tax Write-offs for Lyft Drivers

Maximizing your deductions is key to minimizing your tax liability. Here are some common write-offs for Kansas Lyft drivers:

• Mileage: As mentioned, you can deduct 67 cents per mile (for 2024) driven for Lyft. Alternatively, you can deduct actual expenses (gas, oil, repairs, etc.), but you generally can't use both methods. Keep a detailed mileage log!
• Vehicle Expenses (if not using mileage rate): If you choose to deduct actual expenses, you can write off costs like gas, oil changes, repairs, maintenance, tires, insurance, vehicle registration fees, and depreciation.
• Lyft-Related Software & Apps: Fees paid for ride-hailing apps, GPS navigation apps, and tax preparation software specifically used for your Lyft business are deductible.
• Phone Expenses: You can deduct the portion of your cell phone bill that is directly related to your Lyft driving activities. This is typically calculated based on the percentage of time you use your phone for work versus personal use.

The 15.3% Self-Employment Tax Surprise

Many 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, totaling 15.3%. This is calculated on Schedule SE (Self-Employment Tax). However, you only pay self-employment tax on profits over $400. The good news is that half of your self-employment tax is deductible from your gross income, reducing your overall tax burden.

Closing Tip for Kansas Residents

Tax laws can be complex, and it's easy to miss deductions or make errors. I strongly recommend keeping excellent records throughout the year – mileage logs, receipts for expenses, and income statements from Lyft. Consider using accounting software designed for independent contractors. If you're unsure about any aspect of your tax situation, consulting with a qualified tax professional (like myself!) can save you money and headaches in the long run. Good luck, and safe driving!