As an Uber partner, you want to make sure you record all eligible business expenses on your tax return, specifically the form T2125. A big part of your business is your vehicle. Fuel, maintenance, insurance – all of these expenses can possibly lower your tax owing using TurboTax Self-Employed. Let’s review common vehicle expenses.
Gas, Oil, & Other Fluids
The most common vehicle expense for Uber partners is gasoline. Thankfully, these amounts don’t have to be entered individually into TurboTax. Gather all of your eligible gas receipts and record the total. Add any amounts for eligible oil to this total. Gas and oil are lumped together for tax purposes.
It’s important to remember that you’re calculating ALL of the eligible business gas receipts (and other vehicle expenses), not just the times you stopped for gas on your way to pick up a fare.
Don’t forget about other eligible maintenance fluids for your car which may include:
- Brake fluid,
- Windshield washer fluid,
- Power steering fluid,
- Other fluids such as gas line antifreeze, fuel injection cleaner, etc.
Maintenance and Repairs
Along with the “maintenance” fluids you may have purchased, work done to your business vehicle may also be eligible as an allowable expense. This may include:
- Oil changes
- Tire rotations
- New tires
- Car washes and detailing
Your monthly vehicle insurance payment may also be considered an eligible business expense. If you’re unsure of the exact amount of insurance you paid in the year, check your policy or contact your provider.
If you lease your vehicle, the monthly payment may also be considered an eligible business expense. Depending on the amount of your monthly payment, the entire leasing fees may not be fully deductible but it’s important to have your total on hand.
Car Loan Interest
Part of your monthly car note may be considered a business expense – the interest. To determine the interest portion of your car payment, check your loan agreement or contact your bank/loan holder for the exact figure.
Some parking fees may be considered an eligible business expense.
Safety Standards Certificate
The fee paid to obtain you Safety Standards Certificate may be considered a valid business expense.
No Tickets Please
Breaking the law does not equal an allowable business expense. If you’ve received parking tickets, speeding tickets, or other imposed fines, these amounts are not likely going to be eligible business expenses.
This content is intended solely for information purposes and no Uber Partner or other third party may rely upon it as tax or legal advice or use it for any other purpose. As such, Intuit assumes no responsibility whatsoever to Uber Partners or other third parties as a result of the use of information contained herein. Readers are encouraged to consult with professional advisors for advice.