Uber Driver Taxes in South Carolina - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Uber Driver income taxable in South Carolina?

Yes, income earned as an Uber driver is absolutely taxable, both at the federal and South Carolina state levels. As an independent contractor, you are considered self-employed by the IRS and the South Carolina Department of Revenue.

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). It's crucial to keep detailed records of all income received from Uber and all related business expenses. The IRS requires accurate reporting, and proper documentation is key if you are ever audited.

South Carolina Requirements: South Carolina has a graduated income tax system, meaning the tax rate increases as your income increases. Your net profit from Schedule C will be included in your Adjusted Gross Income (AGI) on your South Carolina income tax return (Form SC1040). The SC tax brackets for 2024 (filing in 2025) will determine your state income tax liability. You can find the current brackets on the South Carolina Department of Revenue website: https://www.dor.sc.gov/. You'll also need to consider any other income you have when calculating your SC tax liability.

Top Tax Write-offs for Uber Drivers

As an Uber driver, you're entitled to deduct legitimate business expenses to reduce your taxable income. 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, insurance, registration fees, and depreciation. You'll need to keep receipts for all these expenses. Calculating actual expenses can be more complex.
• 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: If you use your phone for Uber-related activities (navigation, accepting rides, communication), you can deduct the percentage of your phone bill attributable to business use. Keep records of your phone usage.

The 15.3% Self-Employment Tax Surprise

Many Uber drivers are surprised by 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, totaling 15.3%. This is calculated 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, which reduces your overall tax liability.

Closing Tip for South Carolina Residents

Tax laws can be complex, and it's easy to miss deductions or make errors. Consider consulting with a qualified tax professional, especially in your first year as an Uber driver. Keeping meticulous records throughout the year – income statements from Uber, mileage logs, and expense receipts – will make filing your taxes much smoother. The South Carolina Department of Revenue website (https://www.dor.sc.gov/) is a valuable resource for state-specific tax information. Wishing you a safe and profitable year on the road!