Uber Driver Taxes in Wyoming - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Uber Driver income taxable in Wyoming?

Yes, your income as an Uber driver is taxable, but the situation in Wyoming is simpler than in most states. While Wyoming doesn't have a state income tax, you are still responsible for federal income and self-employment taxes. The IRS considers you self-employed, meaning you're essentially running your own business. You'll report your Uber income and expenses on Schedule C (Profit or Loss From Business), which is filed with your Form 1040.

Wyoming Specifics: Because Wyoming has no state income tax, you won't file a state income tax return. Your tax obligations are solely to the federal government. This simplifies things considerably, but doesn't eliminate your tax responsibilities.

Top Tax Write-offs for Uber Drivers

As a self-employed Uber driver, you can significantly reduce your tax liability by claiming eligible business expenses. Here are some key deductions:

• Mileage: This is often the biggest deduction! For 2024, the standard mileage rate is 67 cents per business mile driven. Keep a detailed log of all miles driven for Uber, including the date, starting and ending locations, and business purpose. You can also deduct parking fees and tolls.
• 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 must choose one method (mileage or actual expenses) and be consistent.
• Uber-Related Fees & Commissions: The fees Uber charges you for using their platform are deductible. This includes the percentage Uber takes from each fare.
• Phone & Data Expenses: If you use your phone for Uber-related activities (navigation, accepting rides, communication), you can deduct the portion of your phone bill attributable to business use. Keep records to support this allocation.

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 – a total of 15.3%. This is calculated on Schedule SE (Self-Employment Tax). However, you only pay self-employment tax on your net earnings (profit) after subtracting your business expenses. You do not pay self-employment tax on the first $400 of your net earnings. Half of your self-employment tax is deductible from your gross income.

Closing Tip for Wyoming Residents

Being an Uber driver in Wyoming offers the benefit of no state income tax, but diligent record-keeping is crucial for maximizing your federal tax savings. Maintain a detailed mileage log, save all receipts for business expenses, and consider using accounting software designed for self-employed individuals. Don't hesitate to consult with a qualified tax professional (like myself!) to ensure you're taking advantage of all available deductions and complying with IRS regulations. Good luck and safe driving!