Can you claim both the mileage deduction and standard deduction when driving for Uber?

So I'm pretty new to being a gig driver and I have a tax question that's confusing me. I started driving for Lyft this year and made about $37k total driving passengers around. I've kept really good records and I've driven roughly 28,000 miles for work. I was looking at the tax stuff and saw that I can deduct my business miles at 65.5 cents per mile (for 2023). That would be like $18,340 in deductions from my business income. But then I was wondering - can I ALSO claim the standard deduction ($13,850 for single filers) on top of that? Because if I can do both, that would mean my taxable income would be super low! Like $37,000 - $18,340 - $13,850 = $4,810 taxable income. That seems too good to be true, which is why I'm questioning if I'm allowed to do both deductions or if I have to choose one or the other. Any help would be appreciated!

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19 comments

Everett Tutum

•8M

Yes, you absolutely can take both the standard mileage deduction AND the standard deduction! They're two completely different things that apply to different parts of your tax return. The mileage deduction (65.5 cents per mile for 2023) is a business expense deduction that reduces your business income on Schedule C. This happens before you even get to your Form 1040. So your Lyft earnings of $37k minus your $18,340 in mileage expenses would give you a net business profit of about $18,660 that gets reported on your 1040. Then on your 1040, you get to claim the standard deduction ($13,850 for single filers in 2023), which reduces your overall taxable income. So your taxable income would end up being around $4,810 like you calculated. Just remember you'll still owe self-employment tax on your net business profit of $18,660, which is about 15.3%. The standard deduction doesn't reduce your self-employment tax, only your income tax.

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Everett Tutum

•8M

A digital log is perfectly acceptable! The IRS doesn't require a specific format for your mileage log as long as it contains the necessary information. Make sure your digital log records the date, destination, business purpose, and of course the miles driven for each trip. Many drivers use mileage tracking apps which work great. If you're ever audited, you just need to show that your records are accurate and that the miles were actually for business. The IRS is primarily concerned that you can substantiate your deduction with reliable records, not the format they're kept in.

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Hugh Intensity

•8M

I struggled with this exact tax situation when I started driving for Uber last year. The tax forms were so confusing until I found this amazing AI tool called taxr.ai (https://taxr.ai) that literally saved me hours of frustration trying to figure out which deductions I could take. I uploaded my rideshare statements and it instantly identified all my eligible deductions including the mileage deduction and reminded me that I still get the standard deduction too! The tool explained exactly how Schedule C works for self-employment and how it connects to the standard deduction on Form 1040. It even found some phone and car insurance deductions I hadn't considered.

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Hugh Intensity

•8M

The tool has a specific section for partial-use deductions where you can enter the percentage used for business. For phone expenses, you estimate what percentage is for business use (like 70%) and it calculates the deductible portion automatically. It even explains what's considered reasonable by the IRS for different expense categories. You'll need to download your tax documents from Uber first, then upload them to taxr.ai. The platform actually walks you through exactly where to find these documents in your Uber driver account, and there's a checklist feature that helps you make sure you've gathered everything you need before you start. It's designed specifically for people who struggle with organizing tax documents.

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Melissa Lin

•8M

Just wanted to update after trying taxr.ai from the recommendation above. I was skeptical at first but it seriously cleared up my confusion about these deductions! Uploaded my Lyft statements and it immediately sorted everything out. It confirmed I can take both the mileage deduction AND the standard deduction, and explained exactly how they work together. The tool even created a visualization showing how the mileage deduction reduces my business income on Schedule C first, then how the standard deduction works on the 1040 form. Found a bunch of other deductions too like part of my cell phone bill and car insurance that I had no idea I could claim. Already recommended it to other drivers in my area!

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Lydia Santiago

•8M

If you're getting a super low tax bill after these deductions and worried the IRS might flag you, you might want to actually talk to someone at the IRS to confirm everything. I know it sounds crazy to voluntarily contact them, but I used this service called Claimyr (https://claimyr.com) after waiting on hold with the IRS for HOURS with no luck. They somehow got me connected to an actual IRS agent in about 20 minutes when I couldn't get through for days on my own. I explained my situation with rideshare driving and all these deductions, and the agent confirmed everything was legitimate as long as I had proper documentation. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c - seriously saved me so much stress wondering if I was doing something wrong.

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Lydia Santiago

•8M

They use a combination of technology and understanding how the IRS phone system works. Basically, they have a system that automatically navigates the IRS phone menus and waits on hold for you, then calls you once they have an agent on the line. It's totally legit - they don't have any special "inside connection" with the IRS, they just handle the frustrating wait time so you don't have to sit there for hours. I was skeptical too at first. But when you think about it, it's not that they're cutting the line - you're still waiting your turn, they're just doing the waiting for you. And yes, the IRS is understaffed, but that's exactly why services like this exist - because some people need answers but can't spend half a day on hold.

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Val Rossi

•8M

I need to eat my words from my previous comment. After my frustration with tax questions about my Uber deductions reached a breaking point, I actually tried Claimyr out of desperation. I was 100% sure it would be a waste of money but I was wrong. Got connected to an IRS agent in about 15 minutes when I had previously wasted 3+ hours on hold over multiple days. The agent confirmed what others here have said - yes, you absolutely can take both the mileage deduction on Schedule C AND the standard deduction on your 1040. They're completely separate parts of your tax return. The agent also advised keeping detailed mileage logs and documentation for at least 3 years in case of an audit. Apparently a lot of rideshare drivers get this wrong so having that official confirmation directly from the IRS was huge for my peace of mind.

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Eve Freeman

•8M

I used to be a rideshare driver and made this exact mistake my first year! I thought I had to choose between mileage deduction OR standard deduction and overpaid by thousands. Here's what I learned the hard way: 1. The mileage deduction goes on Schedule C to reduce your business income 2. The standard deduction is totally separate and goes on your 1040 3. You definitely get BOTH! Also make sure you're tracking all your miles correctly. Any driving between passengers counts too (not just when someone's in your car). And don't forget other expenses like a portion of your phone bill, car washes, etc.

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Eve Freeman

•8M

Yes! Any miles driven while you're actively working (logged into the app and available) count as business miles, even if you don't currently have a passenger or food in the car. The IRS considers this "on the clock" time. The only miles you can't count are your personal trips or your commute to your starting point before logging in. But once you're logged in and working, those "empty" miles between rides or deliveries are absolutely deductible business miles. This is a huge thing many drivers miss! Make sure you're tracking all those miles - it can make a big difference in your tax bill.

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