Uber Driver Taxes in Oklahoma - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Uber Driver income taxable in Oklahoma?

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

Federal Taxes: You'll report your Uber income and expenses on Schedule C (Profit or Loss From Business), which is filed with your Form 1040. This form calculates your net profit (income minus expenses). The net profit is then added to your other income when calculating your Adjusted Gross Income (AGI).

Oklahoma State Taxes: Oklahoma has a graduated income tax system. This means the tax rate you pay increases as your income increases. Your Uber net profit, as calculated on your federal Schedule C, will be included in your Oklahoma taxable income. You'll use Form 511, Oklahoma Income Tax Return, to calculate your state income tax liability. The 2024 Oklahoma tax brackets (for filing in 2025) will determine your specific tax rate. You can find the current brackets on the Oklahoma Tax Commission website: https://www.ok.gov/tax/

Top Tax Write-offs for Uber Drivers

One of the benefits of being self-employed is the ability to deduct business expenses, which can significantly reduce your taxable income. Here are some key deductions for Oklahoma Uber drivers:

• Mileage: This is often the largest deduction. For 2024, the standard mileage rate is 67 cents per mile for business use. Keep a detailed log of all miles driven for Uber, including the date, starting and ending locations, and purpose (e.g., "Uber ride - passenger pickup"). You can also deduct parking fees and tolls related to Uber trips.
• Vehicle Expenses (Alternative to Mileage): Instead of the standard mileage rate, you can deduct the actual expenses of operating your vehicle, such as gas, oil changes, repairs, insurance, registration fees, and depreciation. This requires more detailed record-keeping. Generally, the mileage method yields a larger deduction, but compare both methods to see which is best for you.
• Uber App Fees & Software: Any fees you pay to Uber, as well as the cost of any tax preparation software or apps used specifically for managing your Uber income and expenses, are deductible.
• Phone Expenses: If you use your personal phone for Uber-related activities (navigation, accepting rides, etc.), you can deduct the percentage of your phone bill that corresponds to business use. Keep records of your phone usage to support this deduction.

The 15.3% Self-Employment Tax Surprise

As 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, totaling 15.3%. This is known as self-employment tax.

You'll calculate this on Schedule SE (Self-Employment Tax), which is filed with your Form 1040. The good news is you only pay self-employment tax on your net earnings after subtracting your business expenses (as reported on Schedule C). Also, you can deduct one-half of your self-employment tax from your gross income on Form 1040, further reducing your overall tax liability.

Remember, self-employment tax applies to earnings over $400.

Closing Tip for Oklahoma 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 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 Oklahoma tax laws. Proper planning can save you significant money and avoid potential issues with the IRS or the Oklahoma Tax Commission. Good luck and safe driving!