Tax season may be stressful and perplexing for many people. Usually includes paperwork, complicated tax requirements, and the search for all of those receipts from the beginning of the fiscal year. 

As the Uber App grows in popularity, so does the demand for Uber Drivers. If you’re an Uber driver, we’ll need tax-related information from you and certain tax deductions you could be eligible for.

Here are some Tax Return Tips for Uber Drivers to help you get the most out of your tax refund this year and where to find an Uber tax accountant: 

Income Tax 

As an Uber Driver, you must include all of your earnings from the Uber App and any other employment or sources you may have throughout the year. You’ll need your payment summaries or Group certificates, which document your income and tax payments over the previous 12 months. This includes your weekly Uber payment and sales statements detailing the total fare, tolls, service fee, and incentives.

Your tax summary information is accessible through your Uber Partner log-in, and summaries are available starting in mid-July.

Deductions 

You may be allowed to deduct some work-related expenses in addition to your income tax. This might include a work-related percentage of your gas and car expenses and a work-related percentage of your cell phone bills and Uber service fees.

You’ll need to keep track of your spending or provide evidence of purchase to claim these tax deductions. It’s critical to keep accurate records to back up your tax deduction claims. The ATO may impose penalties for making misleading or false representations.

Keep a well-organized filing system of your documents and receipts throughout the year to avoid missing out on significant tax deductions. This can be preserved on paper or the computer. 

Accountants for Uber drivers set you up with the appropriate online bookkeeping software at MAS Tax to support you in keeping track of your records and entering any required data.

These are some of the typical deductions you can claim on your tax return:

  • A percentage of your car’s gasoline
  • A percentage of your automobile insurance
  • Any service charges or other charges you owe Uber
  • Cleaning, servicing, and maintenance costs for your car
  • Depreciation and operating costs of a car
  • Expenses incurred as a result of work-related mobile phone usage
  • Fees for accountants and tax preparers

Getting Reimbursed for Your Travel Expenses

Your car would be regularly used for work-related functions as an Uber Driver. In addition to the above-mentioned car-related deductions, you may be able to claim travel expenses.

To claim work-related car expenditures, you can use one of two methods:

Per Litre Cents

You’ll be able to do this using this method:

  • Each car is limited to 5,000 business kilometers.
  • You will not need written proof, but you must be able to demonstrate how you calculate your business mileage.

Logbook For Vehicles

If you plan to use a Logbook to claim your tax expenses, you must keep a detailed Logbook for at least 12 weeks. This data will serve as a forecast for your car usage over the following five years. You’ll need to keep track of each trip’s time, distance, and odometer readings and the logbook’s overall time, distance, odometer, and fuel statistics.

Take into account the following details:

  • You can only subtract costs that are directly relevant to your job. Additionally, it will only be permissible to claim a percentage of your car expenses if you use it for business and pleasure.
  • Your expenses include operating costs and depreciation, but not capital costs.
  • You can claim fuel and oil expenses using either real receipts or an estimate based on odometer logbook records that indicate readings from the beginning and end of the year you had the car.
  • You’ll need written proof of all other car expenses, such as receipts and invoices.

You can also consult with a firm with in-depth knowledge in accounting for Uber drivers. 

Conclusion 

You must report all of your earned income and work-related expenses on your tax return to guarantee that you get your full refund and avoid any costly mistakes. It would be nice if you could feel organized and confident with your tax return lodgment if you followed these basic Tax Return Tips for Uber Drivers.

Rideshare Tax is a free app for Uber and Lyft drivers. Our goal is to help you through the often complex and perplexing tax rules and accounting for Uber drivers. We also provide a free ABN and GST registration service. We can also help you manage your BAS while you’re on the go. Download the app now to learn more about rideshare tax in Australia!