Uber Driver Taxes in Kansas - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Uber Driver income taxable in Kansas?

Yes, income earned as an Uber driver is absolutely taxable, both at the federal and Kansas state levels. As an independent contractor, you are 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 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). The net profit is then added to your other income when calculating your Adjusted Gross Income (AGI).

Kansas Specific Rules: Kansas has a graduated income tax system. This means the tax rate you pay depends on your taxable income. Your Uber net profit, as calculated on Schedule C, will be added to your other income, and then Kansas income tax will be calculated based on the applicable tax brackets for the 2024 tax year (filing in 2025). You'll use Kansas Form K-40 to file your state income tax return. Kansas also allows for itemized deductions, which may further reduce your taxable income. Information on Kansas tax brackets and forms can be found on the Kansas Department of Revenue website: https://www.ksrevenue.gov/

Top Tax Write-offs for Uber Drivers

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

• 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 Uber, including the date, starting and ending locations, and business purpose. You can also deduct parking fees and tolls related to your Uber trips.
• 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. Generally, mileage is simpler.
• Uber App Fees & Software: Any fees you pay to Uber, as well as the cost of any tax preparation software or apps used specifically for tracking your Uber income and expenses, are deductible.
• Phone Expenses: If you use your personal cell phone for Uber-related activities (navigation, accepting rides, etc.), you can deduct the percentage of the phone bill attributable to business use. Keep records to support this calculation.

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 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), which is filed along with your Form 1040. The good news is you can deduct one-half of your self-employment tax from your gross income, which helps reduce your overall tax burden.

Remember, self-employment tax applies to earnings over $400.

Closing Tip for Kansas Residents

Navigating self-employment taxes can be complex. I strongly recommend keeping meticulous records of all your income and expenses throughout the year. Consider using accounting software designed for independent contractors. Don't hesitate to consult 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 Kansas tax laws. Proper planning can save you significant money and stress during tax season. Good luck and safe driving!