Uber Driver Taxes in Nebraska - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Uber Driver income taxable in Nebraska?

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

Federal Requirements (Schedule C): You'll report your Uber income and expenses on Schedule C (Profit or Loss From Business) when you file your federal income tax return (Form 1040). This form calculates your net profit (income minus expenses), which is then factored into your adjusted gross income (AGI). The official 2024 standard mileage rate is 67 cents per mile. You can choose to deduct either actual expenses or the standard mileage rate – generally, the standard mileage rate is simpler and often results in a larger deduction, especially if you have significant mileage.

Nebraska Specific Rules: Nebraska has a graduated income tax system. This means the tax rate you pay increases as your income increases. Your Uber net profit (from Schedule C) will be added to your other income, and then Nebraska income tax will be calculated based on the applicable tax brackets for the 2024 tax year. You'll use Nebraska Form 1040N to calculate your state income tax liability. Be sure to check the Nebraska Department of Revenue website for the most up-to-date tax brackets and forms: https://revenue.nebraska.gov/

Top Tax Write-offs for Uber Drivers

• Mileage: This is often the largest deduction. Track all business miles driven (from accepting a ride request to dropping off the passenger). Multiply your total business miles by the 2024 standard mileage rate (67 cents/mile). Keep a detailed mileage log!
• Vehicle Expenses (Alternative to Mileage): If you choose not to use the standard mileage rate, you can deduct actual vehicle expenses like gas, oil changes, repairs, insurance, registration fees, and depreciation. You must keep detailed records of these expenses.
• Uber-Related Software & Apps: Expenses for apps or software used specifically for Uber driving (e.g., ride-tracking apps, tax preparation software designed for self-employed individuals) are deductible.
• Phone Expenses: You can deduct the portion of your cell phone bill that is directly related to your Uber driving activities. Keep records showing the business use percentage. (e.g., if 75% of your phone use is for Uber, you can deduct 75% of the bill).

The 15.3% Self-Employment Tax Surprise

Because you're self-employed, you're responsible for 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). The good news is you get to deduct one-half of your self-employment tax from your gross income on Form 1040, which reduces your overall tax liability. However, be prepared for this additional tax – it’s often a surprise to new Uber drivers!

Closing Tip for Nebraska 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 (like myself!) to ensure you're taking all the deductions you're entitled to and complying with both federal and Nebraska tax laws. Don't wait until the last minute – proactive tax planning can save you time, money, and stress. Good luck and safe driving!