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Kingston Bellamy

Can I claim both the mileage deduction AND standard deduction for my Uber driving?

I started driving for Uber last year and made around $38k in total. I put in some serious miles - about 35,000 for the year. I'm trying to figure out how these deductions work. Can I take the 65.5 cents per mile deduction (which would be like $22,925) AND also take the $13,850 standard deduction? Because if I can do both, that would leave me with almost no taxable income - just around $1,225! That seems too good to be true. Are these deductions stacked or am I missing something about how this works? This is my first year with this much self-employment income and I want to make sure I'm doing it right.

Joy Olmedo

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Yes, you can absolutely claim both! The mileage deduction and standard deduction are two completely different types of deductions that occur at different places on your tax return. The mileage deduction is a business expense that reduces your self-employment income on Schedule C. This happens before the amount transfers to your 1040. So if you made $38k from Uber and had $22,925 in mileage deductions, your net business income would be around $15,075. Then on your 1040, you'd take the standard deduction of $13,850 against your total income (including that $15,075). So your taxable income would indeed be very low - around $1,225 as you calculated. Just remember you'll still owe self-employment tax on the $15,075 net business income (Schedule SE), which is about 15.3% to cover Social Security and Medicare taxes. That's separate from income tax.

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Isaiah Cross

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Wait, so even if your taxable income is super low, you still have to pay the self-employment tax? How much would that roughly be on $15k of net income?

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Joy Olmedo

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Yes, self-employment tax applies to your net business income regardless of your final taxable income amount. On $15,075 of net business income, your self-employment tax would be approximately $2,306 (which is 15.3% of 92.35% of your net business income - there's a slight reduction in the calculation). However, you do get to deduct half of your self-employment tax on your 1040, which would further reduce your income tax (though not by much since your taxable income is already so low).

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Kiara Greene

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Just wanted to share my experience here - I was in a similar situation last year and was stressing about my taxes. I tried using https://taxr.ai to analyze my rideshare earnings and mileage, and it really helped clarify how these deductions work together. I uploaded my Uber annual summary and my mileage log, and it showed me exactly how the business expenses flow through Schedule C before the standard deduction even comes into play. The tool also flagged some additional deductions I was missing - like a portion of my phone bill, car washes, and even bottled water I kept for passengers. Definitely worth checking out if you're doing rideshare work.

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Evelyn Kelly

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I'm curious - did it help with tracking miles too? I'm always forgetting to log my miles and I know I'm leaving money on the table.

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Paloma Clark

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Does it work with other gig apps too? I do DoorDash and Instacart along with Uber.

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Kiara Greene

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It doesn't track miles itself, but it does help you understand which miles count and which don't. I actually started using a separate app called Stride for the actual mile tracking, but taxr.ai helped me understand that my miles driving to my first pickup or returning home from my last dropoff actually count as business miles, which I didn't know before. Yes, it works with all the gig platforms! I mainly use Uber, but my friend uses it for his DoorDash and Instacart work. It can analyze income and expenses from multiple platforms and helps separate everything properly for tax purposes.

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Paloma Clark

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Just wanted to follow up about that taxr.ai site. I gave it a try last weekend and it was super helpful for my situation. I do Uber, DoorDash AND Instacart, and was really confused about how to handle all the different income streams and expenses. The analysis showed me I was tracking my miles wrong - I wasn't counting dead miles between deliveries which is actually a big chunk of potential deductions! Also helped me understand how to properly categorize some expenses I wasn't sure about. Definitely made me feel less anxious about filing my taxes this year.

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Heather Tyson

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If you're having trouble reaching the IRS to ask about specific deduction questions (which I definitely was), I'd recommend trying https://claimyr.com. They have this service that gets you connected to an actual IRS agent way faster than calling directly. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c I had questions about my rideshare deductions that weren't covered clearly in the IRS publications, and I wasted hours on hold before finding this service. Got through to an agent in about 15 minutes who confirmed exactly how the mileage deduction works with the standard deduction (yes, you can take both) and answered some questions about tracking requirements.

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Raul Neal

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How does this actually work? Seems sketchy that they can somehow get you through faster than calling yourself.

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Jenna Sloan

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Yeah right. The IRS doesn't have some "VIP line" that certain people can access. This sounds like some kind of scam to get desperate people to pay for nothing. I've been on hold with the IRS for 3+ hours before - that's just how it is.

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Heather Tyson

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It's not a VIP line. What they do is use technology to navigate the IRS phone tree and wait on hold for you. When they reach a human agent, they call you and connect you directly. The IRS doesn't even know you used a service - they just think you waited on hold like everyone else. The service was created by someone who worked in the call center industry and knew how to automate the hold process. It's completely legitimate - they're just saving you from having to sit there with your phone for hours. And when you're self-employed, those hours are literally costing you money you could be earning.

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Jenna Sloan

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I have to admit I was totally wrong about Claimyr. After my skeptical comment, I was still desperately trying to reach the IRS about my rideshare tax situation, so I figured I had nothing to lose and tried it. No joke - I got a call back in 45 minutes and was connected to an actual IRS agent. I explained my Uber driving situation, and they confirmed that yes, you can absolutely claim both the mileage deduction on Schedule C AND take the standard deduction on your 1040. They also explained that I needed to keep a detailed mileage log in case of audit, not just rely on the Uber summary. Saved me hours of waiting and the agent was actually really helpful. Consider me converted!

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One thing to be careful about - make sure you're tracking your miles properly! The IRS can be really picky about mileage logs during an audit. You need to record: - Date of each trip - Starting and ending location (addresses) - Business purpose - Starting and ending odometer readings or total miles I learned this the hard way when I got audited two years ago. I lost thousands in deductions because my log wasn't detailed enough.

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Sasha Reese

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Is there an app you recommend for tracking all this? Seems like a lot to keep up with when you're doing multiple rides a day.

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I personally use MileIQ now, but there are several good ones - Stride, Everlance, and Hurdlr are all popular with drivers. Most of them use GPS to automatically track your trips and let you swipe to categorize them as business or personal. Then you can export a detailed report at tax time that meets IRS requirements. The key is consistency - start using it from day one and categorize your trips daily or weekly at the latest. It only takes a few minutes once you get in the habit.

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Has anyone calculated how the self-employment tax impacts this? Even if your income tax is near zero, you still have to pay SE tax right? I heard it's like 15% which would eat up a lot of the benefit.

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Noland Curtis

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Yep, self-employment tax is 15.3% on your net earnings (after expenses like mileage but before the standard deduction). So in the original example, if you had $38k in income and $22,925 in mileage deductions, you'd have $15,075 in net earnings. The SE tax would be about $2,306 (it's actually calculated as 15.3% of 92.35% of your net earnings). So while your income tax might be super low, you'd still owe that $2,306 for SE tax. One small benefit is you get to deduct half of your SE tax on your 1040, which lowers your income tax a tiny bit more.

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