Uber Driver Taxes in Ohio - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Uber Driver income taxable in Ohio?

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

Federal Requirements (Schedule C): You will 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). Only your net profit is subject to income tax. It's crucial to keep accurate records of all income received from Uber and all business-related expenses.

Ohio Specific Rules (Graduated Income Tax): Ohio has a graduated income tax system. This means the tax rate you pay depends on your taxable income. You'll report your federal Adjusted Gross Income (AGI) on your Ohio income tax return (Form IT 1040). Your Ohio taxable income will be calculated after any applicable deductions and exemptions. The rates change annually, so refer to the Ohio Department of Taxation website for the 2024 rates when filing in 2025. Because Ohio taxes are based on federal AGI, accurate federal reporting is paramount.

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 mile for business use. You must keep a detailed mileage log documenting the date, purpose (Uber trip), and miles driven. You can choose to deduct actual expenses or the standard mileage rate – generally, the standard mileage rate is more beneficial.
• 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, maintenance, insurance, registration fees, and depreciation. You'll need to keep detailed receipts for all these expenses.
• Uber-Related Software & Apps: Fees paid for Uber-related apps (like Stride Tax, Everlance, or other ride-tracking/expense management software) are deductible.
• Phone Expenses: You can deduct the portion of your cell phone bill that is directly related to your Uber driving activities. This is typically calculated based on the percentage of time you use your phone for Uber work.

The 15.3% Self-Employment Tax Surprise

Many Uber 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 combined 15.3% (12.4% for Social Security 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 92.35% of your net earnings from Schedule C. The good news is that half of your self-employment tax is deductible from your gross income, reducing your overall tax liability.

Closing Tip for Ohio Residents

Navigating taxes as an Uber driver can be complex. I strongly recommend keeping meticulous records throughout the year – income statements from Uber, mileage logs, and receipts for all expenses. Consider using accounting software designed for independent contractors. Don't hesitate to consult with a qualified tax professional (like myself!) to ensure you're taking all eligible deductions and complying with both federal and Ohio tax laws. Proactive tax planning can save you significant money and stress when filing time arrives.