Uber Driver Taxes in Missouri - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Uber Driver income taxable in Missouri?

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

Federal Taxes: 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).

Missouri State Taxes: Missouri has a graduated income tax system. This means the tax rate you pay increases as your income increases. Your Uber net profit, as calculated on your federal Schedule C, will be included in your Missouri taxable income (Form MO-1040). You'll use the Missouri tax brackets for the 2024 tax year (filing in 2025) to determine your state income tax liability. The Missouri Department of Revenue website (dor.mo.gov) will have the most up-to-date brackets.

Top Tax Write-offs for Uber Drivers

One of the biggest benefits of being an independent contractor is the ability to deduct business expenses, which can significantly reduce your taxable income. Here are some key deductions for Uber drivers in Missouri:

• 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 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. This method requires meticulous record-keeping and may only be beneficial if your actual expenses exceed the standard mileage deduction.
• Uber-Related Software & Apps: Fees paid for ride-hailing apps, GPS navigation apps, and tax preparation software specifically used for your Uber business are deductible.
• Phone Expenses: If you use your personal phone for Uber work, you can deduct the percentage of the phone bill attributable to business use. Keep records of your business calls and data usage.

The 15.3% Self-Employment Tax Surprise

As 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 known as self-employment tax.

You'll calculate this on Schedule SE (Self-Employment Tax). The good news is you only pay self-employment tax on your net earnings subject to self-employment tax (generally 92.35% of your Schedule C profit). Also, you don't pay self-employment tax on any earnings above a certain limit (the Social Security wage base, which changes annually – check the IRS website for the 2024 limit). You can deduct one-half of your self-employment tax from your gross income on Form 1040.

Closing Tip for Missouri 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 or working with a qualified tax professional, especially given Missouri’s graduated income tax system. Proactive tax planning can help you minimize your tax liability and avoid potential penalties. The Missouri Department of Revenue website (dor.mo.gov) is a valuable resource for state-specific tax information.