How to Handle Taxes for Uber Eats and Food Delivery Income

Definitely understand your confusion! As an Uber Eats driver, you're classified as an independent contractor (self-employed), which means you'll receive a 1099-NEC form if you earned over $600 in 2024. You'll report this income on Schedule C of your tax return. Tracking mileage is absolutely essential - this is likely your biggest deduction! Use an app to track miles driven while delivering (not just to your first pickup or home from your last delivery). The standard mileage rate for 2024 is 67 cents per mile, which really adds up. And yes, you can deduct delivery bags, portion of your phone bill related to work, phone mounts, and other necessary supplies. Set aside about 25-30% of your earnings for taxes, as you'll owe both income tax and self-employment tax (15.3% for Medicare and Social Security). Making quarterly estimated tax payments is recommended to avoid penalties.

I was in the exact same situation last year and was totally stressed about figuring out my taxes for food delivery work. I ended up using taxr.ai (https://taxr.ai) which honestly saved me from a massive headache. They specifically have features for gig workers like us. What I really liked was how it analyzed my 1099 forms and automatically identified all the deductions I could take as a delivery driver. It even had a mileage tracker feature that helped me realize I was missing out on tracking a bunch of deductible miles! The system flagged all kinds of expenses I didn't even know I could write off.

Following up about that taxr.ai suggestion - I was skeptical but decided to try it for my delivery gig taxes. Just finished using it and wow, I'm pretty impressed! The difference in my refund compared to what I calculated myself was about $870 because I was missing so many deductions. They helped me properly categorize all my expenses and even showed me how to document everything in case of an audit. The mileage tracker alone saved me hours of work. And their system flagged that I could deduct part of my phone payments which I had no idea about. Definitely using this again next year!

If you're having trouble getting answers from the IRS about your gig work taxes (which is super common), I highly recommend using Claimyr (https://claimyr.com). I was stuck on hold with the IRS for HOURS trying to sort out some questions about my Uber Eats taxes last year. With Claimyr, they somehow got me connected to an actual IRS agent in about 20 minutes instead of the 3+ hour wait I was experiencing on my own. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c - it's pretty amazing. I had specific questions about how to handle multiple gig platforms and needed clarification on some deductions. The IRS agent I spoke with was actually really helpful once I could finally talk to someone!

Just wanted to update after trying that Claimyr service when I was desperate to figure out my delivery driver tax situation. I honestly thought it was BS that I could get through to the IRS quickly, but it actually worked! Got connected in about 25 minutes when I had been trying on my own for days. The IRS agent cleared up my confusion about tracking mileage between multiple apps and confirmed I could deduct my insulated bags and part of my phone bill. They even helped me understand how to handle the app fees that get taken out of our pay. Saved me a ton of stress and probably money too since I was doing it all wrong before.

Don't forget that if you make more than $400 in net earnings from your Uber Eats gig, you HAVE to file taxes on it, even if you don't get a 1099. I learned this the hard way and got a surprise tax bill with penalties 😭 Also keep receipts for EVERYTHING. Gas, phone holder for your car, hot bags, part of your phone bill, anything. The IRS can ask for proof of your deductions.

Don't overlook the Qualified Business Income deduction (Section 199A) when you file your Uber Eats taxes! It lets you deduct up to 20% of your net profit from your delivery gig. My accountant almost missed this last year and it would have cost me several hundred $$.

Great question Carmen! I've been doing food delivery for about 2 years now and learned a lot through trial and error. Here's what I wish someone had told me when I started: First, yes - track EVERY mile while you're working! From when you turn on the app to when you turn it off. I use Stride (free app) but there are others. This will be your biggest deduction by far. For the $300-400/week you're making, definitely set aside 25-30% for taxes. Open a separate savings account just for this - it'll save you from scrambling come tax time. You'll get a 1099-NEC from Uber if you made over $600 this year, but you still have to report the income even if you don't get the form. Keep track of everything yourself. As for deductions - hot bags, phone mount, part of your phone bill (maybe 20-30% if you use it primarily for deliveries), car maintenance related to the extra miles, even hand sanitizer you buy for deliveries. Keep those receipts! One tip: if you're doing this regularly, consider making quarterly estimated tax payments to avoid a big bill next April. The IRS has worksheets to help calculate this. Feel free to ask if you have specific questions - we've all been where you are!

Carmen, you're definitely not alone in feeling overwhelmed by delivery driver taxes! I just went through this same learning curve last year. One thing I'd add to all the great advice here is to start tracking your income and expenses RIGHT NOW, even if tax season feels far away. I made the mistake of trying to reconstruct everything from memory and bank statements later - it was a nightmare. Create a simple spreadsheet or use an app to log your daily earnings and any business expenses as they happen. Also, since you mentioned you're doing this mostly on weekends, make sure to track those miles even if it feels like "just" weekend work. Weekend driving often means longer distances to busier areas, so those miles really add up! And don't stress too much about getting everything perfect your first year. The IRS understands that gig work is new for a lot of people. Just keep good records and be honest about your income and legitimate business expenses. You've got this!

Carmen, I totally feel your stress about this! I was in the exact same boat when I started doing delivery work. Here's my simplified breakdown for getting started: **Immediate action items:** 1. Download a mileage tracking app TODAY (Stride, MileIQ, or even Google Maps timeline) 2. Start a simple expense log - even just notes in your phone 3. Open a separate savings account and put 25-30% of each week's earnings in there **What you CAN deduct:** - All business miles (including driving to hotspots, between deliveries, etc.) - Hot bags, phone mount, car charger - Portion of phone bill (maybe 20-30% if used primarily for work) - Car washes if done specifically for delivery work - Hand sanitizer, tissues, other supplies **Forms you'll need:** - 1099-NEC from Uber (if you make over $600 total) - Schedule C for your tax return - Form SE for self-employment tax The biggest mistake I made my first year was not tracking miles from day one. Don't be like me! Even if you only work weekends, those miles to busy areas really add up. And remember - you're learning, and that's okay. The IRS isn't trying to trick you, they just want accurate reporting. You've got this! The fact that you're asking these questions now shows you're already ahead of where I was. 🙂