Turo Host Taxes in Nebraska - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Turo Host income taxable in Nebraska?

Yes, income earned as a Turo host is absolutely taxable, both at the federal and Nebraska state levels. The IRS considers Turo hosting a business activity, meaning you’ll need to report your earnings and expenses.

Federal Requirements: You’ll report your Turo income and expenses on Schedule C (Profit or Loss From Business), which is filed with your Form 1040. This schedule allows you to deduct all ordinary and necessary business expenses, ultimately determining your net profit or loss.

Nebraska Specific Rules: Nebraska has a graduated income tax system, meaning the tax rate you pay increases as your income increases. Your Turo net profit (after deducting expenses on Schedule C) will be added to your other income (wages, investments, etc.) to determine your total taxable income for Nebraska. Nebraska then applies its graduated tax brackets to calculate your state income tax liability. You'll use Nebraska Form 1040N to file your state income tax return. Be sure to check the current Nebraska tax brackets for the 2024 tax year (filing in 2025) on the Nebraska Department of Revenue website (revenue.nebraska.gov).

Top Tax Write-offs for Turo Hosts

• Mileage: This is often the biggest deduction! For 2024, the standard mileage rate is approximately 67 cents per business mile driven (confirm the exact rate on the IRS website: irs.gov). Keep a detailed mileage log documenting the date, purpose (e.g., picking up/dropping off a vehicle), and miles driven for each trip.
• Vehicle Expenses (Alternative to Mileage): Instead of using the standard mileage rate, you can deduct the actual expenses of operating your vehicle, such as gas, oil changes, repairs, maintenance, insurance, and registration fees. You'll need to carefully track all these costs. You cannot deduct both mileage and actual expenses.
• Cleaning & Maintenance: Expenses related to cleaning, detailing, and maintaining your vehicle in rentable condition are deductible. Keep receipts for cleaning supplies, detailing services, and any repairs performed.
• Turo Fees & Software: The fees you pay to Turo, as well as the cost of any software or apps you use to manage your Turo business (e.g., scheduling tools, expense trackers), are deductible business expenses.

The 15.3% Self-Employment Tax Surprise

Because you're considered self-employed as a Turo host, 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 and 2.9% for Medicare) on earnings over $400.

You’ll calculate this tax on Schedule SE (Self-Employment Tax), which is also filed with your Form 1040. The good news is that you can deduct one-half of your self-employment tax from your adjusted gross income, which can help lower your overall tax liability.

Closing Tip for Nebraska Residents

Navigating self-employment taxes can be complex. As a Nebraska resident, remember to keep meticulous records of all your Turo income and expenses throughout the year. Consider using accounting software or working with a qualified tax professional (like myself!) to ensure you’re taking all eligible deductions and complying with both federal and Nebraska tax laws. Don't hesitate to consult the Nebraska Department of Revenue website (revenue.nebraska.gov) for the most up-to-date information and forms.