Lyft Driver Taxes in Ohio - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Lyft Driver income taxable in Ohio?

Yes, income earned as a Lyft driver is absolutely taxable, both at the federal and Ohio state levels. As an independent contractor, you're considered self-employed by the IRS and the Ohio Department of Taxation. This means you're responsible for paying income tax and self-employment tax on your earnings.

Federal Requirements: You'll report your Lyft income and expenses on Schedule C (Profit or Loss From Business) when you file your federal income tax return (Form 1040). Schedule C calculates your net profit (income minus expenses), which is then added to your other income to determine your adjusted gross income (AGI). The official 2024 standard mileage rate is 67 cents per mile – keep accurate records of your business miles driven!

Ohio Specific Rules: Ohio has a graduated income tax system. This means the tax rate you pay depends on your taxable income. Your net profit from Schedule C will be included in your Ohio taxable income, and taxed accordingly. You'll use Ohio Form IT-1040 to calculate your Ohio income tax liability. Ohio also allows for itemized deductions, which may further reduce your taxable income. You can find the current Ohio tax brackets and forms on the Ohio Department of Taxation website: https://tax.ohio.gov/

Top Tax Write-offs for Lyft Drivers

As a Lyft 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. Use the standard mileage rate (67 cents per mile for 2024) or, if you prefer, track your actual car expenses (gas, oil, repairs, insurance, depreciation, etc.). You cannot use both methods. Keep a detailed mileage log!
• Phone Expenses: If you use your phone for Lyft-related activities (navigation, accepting rides, communication with passengers), you can deduct the business portion of your phone bill.
• Lyft-Specific Software & Fees: Any fees paid to Lyft, or costs for apps/software used specifically for driving (e.g., tax tracking apps designed for rideshare drivers) are deductible.
• Car Cleaning & Maintenance: Expenses related to keeping your car clean and in good working order for rideshare purposes (car washes, air fresheners, minor repairs) are deductible. Major repairs are also deductible, or depreciation if tracking actual expenses.

The 15.3% Self-Employment Tax Surprise

Many drivers are surprised to learn about self-employment tax. When you're 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 – a total of 15.3%.

You'll calculate this tax on Schedule SE (Self-Employment Tax). The good news is you only pay self-employment tax on your net profit (after deducting business expenses). Also, you can deduct one-half of your self-employment tax from your gross income on Form 1040, which helps reduce your overall tax burden.

Closing Tip for Ohio Residents

Tax laws can be complex, and it's easy to miss deductions or make errors. Consider consulting with a qualified tax professional, especially if this is your first year driving for Lyft or if your tax situation is complicated. Accurate record-keeping throughout the year (mileage logs, expense receipts) is crucial for maximizing your deductions and ensuring a smooth tax filing process. Don't wait until the last minute – start preparing your taxes early! The Ohio Department of Taxation offers resources and assistance on their website: https://tax.ohio.gov/