Uber Driver Taxes in Wisconsin - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Uber Driver income taxable in Wisconsin?

Yes, income earned as an Uber driver is absolutely taxable, both at the federal and Wisconsin state levels. As an independent contractor, you are considered self-employed by both the IRS and the Wisconsin Department of Revenue. 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 factored into your adjusted gross income (AGI). The official 2024 standard mileage rate is 67 cents per mile for business use of your vehicle. Keep a detailed mileage log!

Wisconsin Specific Rules: Wisconsin has a graduated income tax system, meaning the tax rate you pay increases as your income increases. Your net profit from Schedule C will be added to your other income (like wages from a traditional job, if any) to determine your Wisconsin taxable income. This amount is then used to calculate your Wisconsin income tax liability based on the current year's tax brackets. You'll file Form 1040-ES if you expect to owe $1,000 or more in Wisconsin income tax. Wisconsin also has a similar deduction to the federal Qualified Business Income (QBI) deduction, which may further reduce your tax liability – consult the Wisconsin Department of Revenue for details.

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. Use the standard mileage rate (67 cents/mile for 2024) or, if you prefer, track your actual car expenses (gas, oil, repairs, insurance, depreciation, etc.). You cannot use both methods.
• Vehicle Expenses (if not using mileage): If you choose to deduct actual expenses, keep detailed records of all car-related costs. This includes gas, oil changes, repairs, tires, insurance, registration fees, and depreciation.
• Uber-Related Fees & Software: Any fees paid to Uber, as well as the cost of apps or software used specifically for driving (e.g., GPS navigation, ride-tracking apps), are deductible.
• Phone Expenses: You can deduct the portion of your cell phone bill that is directly related to your Uber driving activities. Keep records showing the business use percentage.

The 15.3% Self-Employment Tax Surprise

Many Uber drivers are surprised to learn about 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 – a total of 15.3%.

You'll calculate this tax on Schedule SE (Self-Employment Tax). The good news is you only pay self-employment tax on 92.35% of your net earnings from Schedule C. Also, you can deduct one-half of your self-employment tax from your gross income on Form 1040, which helps reduce your overall tax liability.

Closing Tip for Wisconsin Residents

Tax laws can be complex, and it's easy to miss deductions or make errors. I strongly recommend keeping meticulous records of all your income and expenses throughout the year. Consider using accounting software designed for self-employed individuals. For the most up-to-date information and personalized advice, consult the Wisconsin Department of Revenue website (https://www.revenue.wi.gov/) or a qualified tax professional in Wisconsin. Proactive planning can save you significant time and money when tax season arrives!