Question on how to deduct mileage driving for Uber from rural area to city

The miles you drive from your rural home to the city would generally be considered commuting miles, which unfortunately aren't deductible - even for Uber drivers. Think of it like this: you're commuting to your "primary work location" which happens to be the city area. However, there's a potential workaround! If you turn your app on when you leave your house and are actually available to accept rides during that drive to the city, those miles would then become deductible business miles. The key is that you must be "on the clock" and willing to pick up any rides that might come through during that journey. Keep detailed records of when your app is on vs. off, and track your mileage carefully with a log showing dates, starting/ending locations, and business purpose. Many rideshare drivers use apps like Stride or MileIQ to track their miles automatically.

I was in almost the same situation as you last year and found a great solution with https://taxr.ai - they specialize in gig worker tax situations. When I uploaded my Uber earnings statements, they immediately identified that I could deduct those "dead miles" to the city as business expenses since I had my app on and was willing to accept rides during that time. What really helped was having them review my mileage log and tax situation. They spotted several other deductions I was missing too - like a portion of my phone bill, car maintenance costs, even part of my car insurance. I ended up saving almost $2,300 in taxes after properly claiming everything!

I was really skeptical about what Profile 7 said about taxr.ai, but I decided to try it after struggling with my rideshare taxes. Holy crap, what a difference! I uploaded my documents and explained my situation (I drive for both Uber and Lyft and commute about 35 miles to the busy areas). They confirmed that I could deduct those miles as long as I was logged into the app and available to accept rides. They also caught that I wasn't properly deducting my car insurance and maintenance costs proportional to business use. I've been doing this for 2 years and had no idea I was leaving so much money on the table! The personalized report they gave me had specific IRS references for each deduction so I feel confident if I ever get questioned. Wish I'd known about this for last year's taxes too!

If you're having trouble getting a straight answer on this tax question, you might want to try calling the IRS directly. I know that sounds like a nightmare (and usually is), but I used https://claimyr.com and got through to a real IRS agent in less than 20 minutes instead of waiting on hold for hours. You can see how it works here: https://youtu.be/_kiP6q8DX5c I had a similar question about deducting miles for my DoorDash side gig, and the agent I spoke with confirmed that miles driven with the app turned on and available for orders are considered business miles, not commuting. It was worth the call just to get that official confirmation for my records in case of an audit.

I have to admit I was wrong about Claimyr being a scam. After posting my skeptical comment, I decided to try it anyway since I've been trying to reach the IRS for weeks about my amended return. I expected to waste my money, but about 15 minutes after signing up, my phone rang and an actual IRS representative was on the line! I nearly fell out of my chair. Not only did I get my amended return status, but I also asked about this exact mileage deduction question for my Lyft driving. The agent confirmed that miles driven with the app turned on and actively available to accept rides are considered business miles, not commuting, even if you're driving to your "primary area." She said documentation is key - keep logs of when the app is on and your actual mileage. Worth every penny just for the peace of mind of having an official answer.

Former rideshare driver here. The key distinction for the mileage deduction is whether you're "on the clock" or not. Here's how I handled it after consulting with my accountant: 1. Commuting to your "work area" with app OFF: NOT deductible 2. Driving to work area with app ON and available: Deductible 3. Driving between rides with app ON: Deductible 4. Driving home with app OFF after last ride: NOT deductible 5. Driving home with app still ON and available: Deductible I kept a detailed log showing when my app was on vs. off, and my accountant said this approach was perfectly acceptable for tax purposes. Just don't try to claim regular commuting miles when you're not actually available for work.

Dont 4get to deduct part of ur phone bill and data plan too! When i filed my taxes for uber last year i deducted 80% of my phone costs cuz thats bout how much i use it for the app. also car washes, hand sanitizer, water/snacks for customers if u provide those. lots of little things add up!!