FlowTex Accounting
FlowTexTaxes for Rideshare and Delivery Drivers: Income and Deductions
By FlowTex Accounting · January 11, 2027
Driving for a rideshare or delivery app usually makes you self-employed in the eyes of the IRS, not an employee of the app. That changes how you report income and what you can deduct.
Report all your income
The IRS says gig income is taxable, whether you were paid in cash, through an app, or by a platform. You may receive a Form 1099-K, a Form 1099-NEC, or neither. A missing form does not make the income tax-free. Track your own totals all year.
Self-employment tax
You also owe self-employment tax when your net earnings from self-employment are $400 or more. The rate is 15.3%, which is 12.4% for Social Security and 2.9% for Medicare. See quarterly estimated taxes, because no one withholds this for you.
Expenses that may be deductible
You report income and expenses on Schedule C. Common driver expenses can include:
- Vehicle costs, using the standard mileage rate or actual expenses.
- Parking and tolls for business trips. With the standard mileage rate, these can be deducted in addition to it.
- The business share of your phone plan.
- Platform fees and service charges taken from your earnings.
- Supplies, such as phone mounts or charging cables, when used for business.
Only business use counts. A personal trip is not deductible.
Mileage rates in 2026
| Period | Business rate |
|---|---|
| January 1 to June 30, 2026 | 72.5 cents per mile |
| From July 1, 2026 | 76 cents per mile |
Use the rate for the date you drove. Commuting from home to a regular workplace is not business mileage, so ask a tax professional how it applies to your app’s work pattern. Be consistent and keep a record. See how to keep a mileage log.
Records to keep
Keep your app’s earnings statements, 1099 forms, mileage log, and receipts. IRS Publication 463 explains the vehicle records the IRS expects.
Safe habits
- Set aside part of each payout for taxes.
- Record mileage every day you drive.
- Compare your own totals to the forms you receive before you file.
Want help with your driver taxes? Book a call with FlowTex.
Sources
- IRS: Manage taxes for your gig work
- IRS: Self-employment tax
- IRS: 2026 business standard mileage rate
- IFEBP: IRS increases 2026 standard mileage rates (July 2026)
- IRS: Publication 463, Travel, Gift, and Car Expenses
This article is general information, not tax advice. Talk to a qualified professional about your situation.