Uber Driver Taxes in Utah - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Uber Driver income taxable in Utah?

Yes, income earned as an Uber driver is absolutely taxable, both at the federal and Utah state levels. The IRS considers you self-employed, not an employee of Uber. This means you're responsible for reporting your earnings and paying all applicable taxes.

Federal Requirements: Schedule C – You’ll report your Uber income and expenses on Schedule C (Profit or Loss From Business) when you file your federal income tax return (Form 1040). This form calculates your net profit (income minus expenses), which is then added to your other income to determine your adjusted gross income (AGI). It's crucial to keep accurate records of all income and expenses throughout the year.

Utah Specific Rules: Flat Income Tax – Utah has a flat income tax rate of 4.85% for the 2024 tax year (filing in 2025). Your net profit from Schedule C will be added to your other income, and this total taxable income will be subject to the 4.85% rate. Utah also requires you to file a state income tax return (Form TC-1040) to report your income and calculate your Utah tax liability.

Top Tax Write-offs for Uber Drivers

As a self-employed Uber driver, you can significantly reduce your tax liability by taking advantage of available deductions. Here are some key write-offs:

• 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 the standard mileage rate if you've previously claimed depreciation on your vehicle.
• 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. You'll need to keep detailed receipts for all these expenses. Generally, the mileage method yields a larger deduction, but compare both methods to see which benefits you most.
• Uber App Fees & Software: The fees Uber charges you, as well as the cost of any tax preparation software or apps used specifically for tracking 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

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 totals 15.3% (12.4% for Social Security and 2.9% for Medicare) on earnings over $400.

Schedule SE (Self-Employment Tax) – You’ll calculate your self-employment tax on Schedule SE, which is filed along with your Form 1040. The good news is that you can deduct one-half of your self-employment tax from your gross income, which helps reduce your overall tax liability.

Closing Tip for Utah 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 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 Utah tax laws. Proactive tax planning can save you significant time and money when filing time rolls around. Good luck and safe driving!