Lyft Driver Taxes in Nevada - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Lyft Driver income taxable in Nevada?

Yes, your income as a Lyft driver is taxable, but the specifics are a bit different in Nevada. The federal government taxes income earned through gig work like driving for Lyft. You'll report your earnings and expenses on Schedule C (Profit or Loss From Business) as a self-employed individual when you file your federal income tax return (Form 1040). This means calculating your profit – your earnings minus your business expenses.

Nevada is unique because it has no state income tax. This means you won't file a Nevada state income tax return based on your Lyft driving income. However, you are still responsible for federal taxes.

Top Tax Write-offs for Lyft Drivers

As a Lyft driver, you can significantly reduce your tax liability by taking advantage of available deductions. Here are some key write-offs:

• Mileage: This is often the biggest deduction! For 2024, the standard mileage rate is 67 cents per business mile driven. Keep a detailed log of all miles driven for Lyft, including the date, starting and ending locations, and purpose (Lyft driving).
• Vehicle Expenses (Alternative to Mileage): Instead of mileage, you can deduct the actual expenses of operating your vehicle, such as gas, oil changes, repairs, insurance, registration fees, and depreciation. You must choose one method (mileage or actual expenses) and be consistent.
• Phone Expenses: 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.
• Ride-Sharing Apps Fees & Subscriptions: Fees paid to Lyft, as well as subscriptions to apps that help you track mileage or manage your driving business, are deductible.

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). Don't worry, you get to deduct one-half of your self-employment tax from your adjusted gross income on Form 1040, which helps lower your overall tax bill.

This tax applies to your net earnings (profit) from Schedule C that are over $400.

Closing Tip for Nevada Residents

While Nevada's lack of state income tax is a benefit, it's crucial to stay organized with your records throughout the year. Keep detailed mileage logs, receipts for all expenses, and track your Lyft earnings carefully. Consider using accounting software designed for self-employed individuals. Proactive tax planning can save you time and money when filing your federal taxes in 2025. It's always a good idea to consult with a qualified tax professional for personalized advice based on your specific situation.