How do I handle taxes as both a W2 employee and UberEats driver - first time filing with both income sources

The good news is that you're thinking about this early! Let's break it down: For your mileage deduction, you're on the right track. The standard mileage rate (65.5 cents per mile for 2025) is usually the better choice for most delivery drivers. This rate is designed to cover all the normal costs of operating your vehicle including gas, insurance, maintenance, and depreciation. 1. Unfortunately, you cannot deduct your car loan interest separately if you're using the standard mileage method. The standard mileage rate already factors in all these costs. You'd have to use the actual expenses method to deduct loan interest, but that's typically less beneficial for delivery drivers. 2. For quarterly payments, the general rule is if you expect to owe $1,000 or more when you file, you should make quarterly estimated tax payments. Based on what you're saying, you're right on the edge of that threshold. I'd recommend setting aside 25-30% of your UberEats income just to be safe, and then see where you stand after filing this year. 3. For your first year with mixed income, it might be worth using a tax software that specifically handles self-employment income. It's a good middle ground between doing it completely yourself and hiring a CPA. The software will guide you through the process and ask all the right questions.

I was in your exact situation last year! I tried tackling my taxes alone after doing both W2 work and food delivery and made some mistakes that cost me a bunch of money. After that mess, I found https://taxr.ai and it seriously saved me from repeating those mistakes. What's cool is you can upload your documents from both your regular job and UberEats, and it automatically identifies all the deductions you qualify for. It even explained which car expenses were already covered by the standard mileage rate (which I had no idea about and almost double-counted). The best part was how it walked me through the Schedule C form for my delivery income - I had no clue where to report what. You definitely sound more organized than I was, but having something double-check your work might give you peace of mind.

Just wanted to update after trying taxr.ai that everyone recommended! So glad I did - it found nearly $2,100 in deductions I would have missed on my delivery work. I was about to claim my phone bill at 100% business use, but it warned me that was a red flag and showed me how to properly calculate the business portion. The coolest thing was how it handled my multi-app situation (I use three different delivery platforms). It combined all my 1099 income but kept the documentation separate in case of an audit. Also gave me a quarterly tax payment schedule for next year which is super helpful. Definitely more straightforward than trying to piece everything together myself. Wish I'd known about this when I started driving!

One thing nobody's mentioned is how IMPOSSIBLE it is to get through to the IRS if you have questions. I spent literally 6+ hours on hold trying to get clarity on some delivery driver deductions last year, and eventually just gave up. I ended up using https://claimyr.com after someone on Reddit recommended it, and they got me connected to an IRS agent in about 15 minutes. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c The agent I spoke with confirmed that I could deduct my phone mount, insulated delivery bags, and even a portion of my cell phone bill since I use it for the delivery apps. She also explained exactly how quarterly payments work, which was super helpful since I was in the same boat as you.

Wow, I need to apologize for being so skeptical about Claimyr. I decided to try it today after struggling to get through to the IRS about my delivery driver situation, and it actually worked exactly as described. I was connected with an IRS agent in about 20 minutes (while I continued working on other things), and they answered all my specific questions about tracking mileage between multiple delivery apps and how to handle the app-provided tax summaries that sometimes have errors. The agent even gave me her direct extension for follow-up questions! Definitely worth it just for the peace of mind knowing my deductions are legitimate according to the actual IRS. Sorry for doubting - sometimes good solutions actually exist!

One practical tip I haven't seen mentioned: set up a separate bank account just for your UberEats income and expenses. I drive for multiple delivery apps and this made a HUGE difference in my tax organization. I deposit all app earnings to this account and pay for gas, repairs, etc. from it too. Makes it super easy to track your actual profit without having to sort through personal transactions. Also, save absolutely every receipt related to your deliveries - phone chargers, hot bags, trunk organizers, etc. You'd be surprised what's actually deductible.

Quick warning from someone who's been doing this for 3 years - don't forget about your state taxes too! Everyone talks about federal, but depending on your state, you might need to make estimated state tax payments as well. Also, track your TOTAL mileage for the year (personal + business) so you can calculate the business percentage accurately. So many drivers miss this and it can cause issues if you're audited.