Lyft Driver Taxes in Louisiana - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Lyft Driver income taxable in Louisiana?

Yes, income earned as a Lyft driver is absolutely taxable, both at the federal and Louisiana state levels. As an independent contractor, you're considered self-employed by the IRS and the Louisiana Department of Revenue.

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. Lyft will send you a Form 1099-K detailing your earnings if you meet certain thresholds (generally $20,000 in payments and more than 200 rides). Even if you don't receive a 1099-K, you are still legally obligated to report all income.

Louisiana State Taxes: Louisiana has a graduated income tax system, meaning the tax rate increases as your income increases. Your Lyft profits (after deducting business expenses) will be added to your other income, and taxed according to the current Louisiana tax brackets. You'll use Form 540 to file your Louisiana income tax return. The specific brackets change annually, so refer to the Louisiana Department of Revenue website for the most up-to-date information when filing in 2025.

Top Tax Write-offs for Lyft Drivers

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

• Mileage: This is often the biggest deduction! For 2024, the standard mileage rate is 67 cents per business mile driven. Keep a detailed log (date, starting/ending location, business purpose) to substantiate your mileage. You can't use both the standard mileage rate and actual car expenses (like gas, oil changes, etc.).
• Vehicle Expenses (Alternative to Mileage): If you choose to, you can deduct the actual expenses of operating your vehicle, such as gas, oil, repairs, insurance, registration fees, and depreciation. This requires meticulous record-keeping.
• 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 attributable to business use. Keep records showing how much time your phone is used for Lyft.

The 15.3% Self-Employment Tax Surprise

As a self-employed individual, you're responsible for both the employer and employee portions of Social Security and Medicare taxes. This combined tax is 15.3% on earnings over $400. This is known as Self-Employment Tax and is reported 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, which can lower your overall tax bill.

Don't be alarmed when you see this tax – it's a normal part of being self-employed. Proper planning and estimated tax payments throughout the year can help you avoid penalties.

Closing Tip for Louisiana 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 designed for independent contractors. For personalized advice tailored to your specific situation, consulting with a qualified tax professional in Louisiana is always a wise investment. Good luck, and safe driving!