Uber Driver Taxes in North Dakota - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Uber Driver income taxable in North Dakota?

Yes, income earned as an Uber driver is absolutely taxable, both at the federal and North Dakota state levels. As an independent contractor, you are considered self-employed by the IRS and the North Dakota Office of State Tax Commissioner. 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) of Form 1040. This form calculates your net profit (income minus expenses), which is then included in your Adjusted Gross Income (AGI). Keep meticulous records of all income and expenses throughout the year.

North Dakota Requirements: North Dakota has a graduated income tax system, meaning the tax rate increases as your income increases. Your net profit from Schedule C will be added to your other income, and then taxed according to the North Dakota tax brackets for the 2024 tax year (filing in 2025). You'll use Form ND-1 to file your North Dakota state income tax return. The ND Office of State Tax Commissioner website (www.nd.gov/tax) provides the most up-to-date tax brackets and forms.

Top Tax Write-offs for Uber Drivers

As an Uber driver, you can significantly reduce your tax liability by claiming eligible business expenses. Here are some key deductions:

• Mileage: This is often the largest deduction. For 2024, the standard mileage rate is 67 cents per business mile driven. You must keep a detailed mileage log documenting the date, purpose (business vs. personal), and miles driven for each trip. You can't use this rate if you claim actual expenses (see below).
• Actual Car Expenses: Instead of the standard mileage rate, you can deduct the actual costs of operating your vehicle, such as gas, oil changes, repairs, maintenance, insurance, registration fees, and depreciation. You'll need to track all these expenses carefully.
• Uber-Related Fees & Commissions: The fees Uber charges you for using their platform are deductible. Keep records of all statements showing these fees.
• Smartphone & Data Plan (Partial): If you use your smartphone primarily for Uber driving, you can deduct the portion of your phone bill and data plan that relates to business use. Keep a log of how often you use your phone for Uber versus personal activities.

The 15.3% Self-Employment Tax Surprise

Because you're self-employed, 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 up to the annual wage base, and 2.9% for Medicare). You'll calculate this tax on Schedule SE (Self-Employment Tax) of Form 1040. However, you only pay self-employment tax on profits over $400. The good news is that you can deduct one-half of your self-employment tax from your gross income on Form 1040.

Closing Tip for North Dakota Residents

Navigating self-employment taxes can be complex. I strongly recommend keeping excellent 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 the deductions you're entitled to and complying with both federal and North Dakota tax laws. Don't wait until tax season to get organized!