Lyft Driver Taxes in West Virginia - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Lyft Driver income taxable in West Virginia?

Yes, income earned as a Lyft driver is absolutely taxable, both at the federal and West Virginia state levels. The IRS considers you self-employed, meaning you're essentially running your own small business.

Federal Requirements: You'll report your Lyft income on Schedule C (Profit or Loss From Business) as part of your Form 1040. This form is where you detail your earnings and, crucially, your deductible business expenses. The difference between your income and expenses is your net profit, which is then subject to income tax.

West Virginia Requirements: West Virginia has a graduated income tax system. This means the tax rate you pay increases as your income increases. Your Lyft net profit (after Schedule C deductions) will be added to your other income (from a W-2 job, for example) and taxed according to the West Virginia tax brackets for the 2024 tax year (filing in 2025). You'll use Form WV-1040 to file your state income tax return. Be sure to check the WV Department of Revenue website for the most up-to-date tax brackets and forms.

Top Tax Write-offs for Lyft Drivers

As a Lyft driver, you're entitled to deduct legitimate business expenses, which can significantly reduce your tax liability. Here are some key deductions:

• Mileage: This is often the biggest deduction! For 2024, the standard mileage rate is 67 cents per mile for business use. Keep a detailed log of all miles driven for Lyft, including the date, starting and ending locations, and purpose (Lyft trip). You can also deduct parking fees and tolls related to Lyft 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 method requires more detailed record-keeping and may only be beneficial if your actual expenses exceed the standard mileage deduction.
• Phone & Data: If you use your phone for Lyft-related activities (navigation, accepting rides, etc.), you can deduct the portion of your phone bill attributable to business use. Keep records showing how much of your phone usage is for Lyft.
• Ride-Sharing Apps Fees: Lyft charges service fees. These fees are deductible as a business expense. Keep records of all fees paid to Lyft.

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.

You'll calculate this tax on Schedule SE (Self-Employment Tax). Don't be alarmed when you see this amount – it's simply the equivalent of what would have been withheld from your paycheck if you were an employee. You do get to deduct one-half of your self-employment tax from your gross income on Form 1040, which helps reduce your overall income tax liability.

Closing Tip for West Virginia 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!) who understands the specific nuances of West Virginia and federal tax laws for rideshare drivers. Proper planning and accurate record-keeping will ensure you maximize your deductions and avoid any unexpected surprises when filing your 2024 taxes in 2025. Good luck, and safe driving!