Uber Driver Taxes in West Virginia - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Uber Driver income taxable in West Virginia?

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

Federal Requirements: 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 IRS considers Uber driving a business, and you must report all income received, including tips.

West Virginia Requirements: West Virginia has a graduated income tax system. This means the tax rate you pay increases as your income increases. You will report your net profit from Schedule C on your West Virginia income tax return (Form WV-NR2 if you are a non-resident, or WV-1040 if you are a resident). The graduated rates for 2024 (filing in 2025) will be available on the West Virginia Department of Revenue website (https://tax.wv.gov/). Your federal adjusted gross income (AGI) is a key factor in determining your West Virginia tax liability.

Top Tax Write-offs for Uber Drivers

As an Uber driver, you can significantly reduce your tax burden 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. Keep a detailed log of all miles driven for Uber, including the date, starting and ending locations, and business purpose. You can use apps to track this automatically.
• 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 what benefits you most.
• Uber-Related Fees & Software: Any fees paid to Uber, as well as the cost of apps or software used specifically for driving (e.g., tax tracking apps, GPS navigation subscriptions), are deductible.
• Phone Expenses: If you use your personal cell phone for Uber-related activities (navigation, accepting rides, communication with passengers), you can deduct the portion of your phone bill attributable to business use. Keep records of business calls and data usage.

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 is currently 15.3% (12.4% for Social Security up to the annual wage base, and 2.9% for Medicare). You'll calculate this on Schedule SE (Self-Employment Tax), which is filed along with your Form 1040. The good news is you can deduct one-half of your self-employment tax from your adjusted gross income, which can lower your overall tax liability. This tax applies to net earnings over $400.

Closing Tip for West Virginia Residents

Navigating self-employment taxes can be complex. I strongly recommend keeping meticulous records of all income and expenses throughout the year. Consider using accounting software designed for independent contractors. Don't hesitate to consult with a qualified tax professional in West Virginia – like myself – to ensure you're taking advantage of all available deductions and complying with all state and federal tax laws. Proactive tax planning can save you significant money and stress during filing season.