No tax withheld
Apps send 1099 forms but withhold nothing, so income tax and self-employment tax pile up until April.
How we helpWe estimate your tax each quarter and set up payments so you pay as you go and avoid penalties.
Transportation and automotive · Tax · Books · Insurance
Taxes and insurance for rideshare and delivery drivers
The apps pay you, but nobody withholds tax. We track your miles, plan quarterly payments and keep your car properly covered.
Rideshare, food delivery and courier drivers work with our office to get every mileage deduction, avoid surprise tax bills and make sure their auto policy covers the hours they drive.
Reviewed by Orkun Ozkaymak, CPA, MBA·Clients in all 50 states and abroad
Rideshare and delivery drivers
Your own business on four wheels
Driving for an app makes you self-employed. That means self-employment tax, quarterly estimated payments and a Schedule C, plus an auto policy that has to account for the hours you drive for hire.
We keep it simple: organize your app statements, capture every mile and expense, and set up estimated payments so April holds no surprises.
Special needs
What drivers need, and how we help
The most common problems we fix for drivers.
Mileage is the biggest deduction
Drivers who skip a mileage log often lose thousands in deductions, and the app totals rarely include miles driven between trips.
How we helpWe help you keep a simple log, compare the standard mileage rate with actual costs and claim the larger deduction.
Several apps, several forms
Different apps send Form 1099-K or 1099-NEC with gross amounts that include fees the app kept.
How we helpWe reconcile each app statement so you are taxed on what you actually earned and fees are deducted properly.
Gaps in your auto coverage
A personal auto policy may not respond the same way while you are logged in and waiting for a ride request.
How we helpOur agency reviews your policy for rideshare and delivery use and shows you options for the hours you drive.
One coordinated office
Services for rideshare and delivery drivers
Tax, accounting and insurance under one roof, so the numbers on your return, your books and your policies all agree.
Tax and accounting
Individual income taxForm 1040 with Schedule C and self-employment tax.Learn more QuickBooks bookkeepingSimple income and expense tracking by app.Learn more Financial planningQuarterly estimate plans and retirement savings for self-employed drivers.Learn more IncorporationsLLC or corporation setup when your driving business grows.Learn more
Insurance
Car insurancePersonal auto reviewed for rideshare and delivery use.Learn more Occupational accidentOccupational accident protection for full-time drivers.Learn more Health insuranceIndividual health coverage when you work for yourself.Learn more Life insuranceLife insurance to protect your family's income.Learn more
Calendar
Filings we keep on schedule
The recurring deadlines rideshare and delivery drivers face most often. We track them for you and send reminders before anything is due.
- Apr 15Jun 15Sep 15Jan 15Estimated tax paymentsFederal and Illinois quarterly estimates.
- Late JanuaryApp tax forms arriveForms 1099-K and 1099-NEC from each platform.
- April 15Form 1040 with Schedule CYour personal return with driving income and deductions.
Dates shown are for calendar-year filers. When a due date falls on a weekend or holiday, it moves to the next business day.
QuickBooks Online
Books built for rideshare and delivery drivers
We keep a simple ledger of income by app and expenses by category, ready for your Schedule C.
Our office sets up QuickBooks Online with a chart of accounts designed for your industry and your entity type, mapped line by line to your tax return. Your books are ready for filing season all year.
Chart of accounts
- 41000Rideshare faresIncome
- 41100Delivery earningsIncome
- 41900Tips receivedIncome
- 51000Platform feesExpense
- 52000Business mileageStandard rate
- 63000Phone and data, business shareExpense
Mapped to your tax return lines
Questions
What rideshare and delivery drivers ask us
Do I have to pay quarterly taxes as a driver?
If you expect to owe $1,000 or more for the year, the IRS expects quarterly estimated payments. Paying on time avoids underpayment penalties.
Standard mileage or actual expenses?
The standard mileage rate is simpler and usually larger for fuel-efficient cars. Actual expenses can win for costly vehicles, but the choice in the first year limits later options. We compare both.
Does my personal auto policy cover rideshare?
Not always, especially while you are logged in waiting for a request. We review your policy and explain the options.
Related industries
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Next step
Let's talk about your business
Request an insurance quote, or start your company with our office. Prefer to talk first? Book a time, virtual or in person.