Uber Driver Taxes in Mississippi - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Uber Driver income taxable in Mississippi?

Yes, income earned as an Uber driver is absolutely taxable, both at the federal and Mississippi state levels. As an independent contractor, you are considered self-employed by the IRS and the Mississippi 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). It's crucial to keep accurate records of both your income from Uber and all related business expenses.

Mississippi Specific Rules: Mississippi has a flat income tax rate of 5% for the 2024 tax year (filing in 2025). Your net profit calculated on Schedule C will be added to your other income, and the 5% tax will be applied to the total. Mississippi also requires you to file a state income tax return (Form 82-101) to report this income.

Top Tax Write-offs for Uber Drivers

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

• Mileage: This is often the largest deduction. For 2024, the standard mileage rate is 67 cents per mile for business use. You must keep a detailed mileage log documenting the date, purpose (Uber trip), and miles driven. You can not use this rate for commuting to/from your home base.
• 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 keep detailed records of all these expenses. Choosing between mileage and actual expenses depends on which results in a larger deduction – calculate both ways!
• Uber App Fees & Software: The fees Uber charges you, as well as the cost of any tax preparation software or apps used specifically for managing your Uber income and expenses, are deductible.
• Phone Expenses: If you use your personal phone for Uber-related activities (navigation, accepting rides, etc.), you can deduct the percentage of your phone bill that corresponds to business use. Keep records of your phone 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 total of 15.3%. This is calculated on Schedule SE (Self-Employment Tax). However, you only pay self-employment tax on 92.35% of your net earnings. 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 liability.

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

Closing Tip for Mississippi Residents

Navigating taxes as an Uber driver can be complex. I strongly recommend keeping meticulous records throughout the year – income statements from Uber, mileage logs, expense receipts, and anything else related to your driving business. Consider using accounting software designed for freelancers or consulting with a qualified tax professional (like myself!) to ensure you're taking all eligible deductions and complying with both federal and Mississippi tax laws. Proper planning can save you significant money and avoid potential issues with the IRS or the Mississippi Department of Revenue.