Every year, we see many Uber and Lyft drivers come into our office looking to have their taxes prepared. When we ask for their documents, most provide the following:

• Form 1099-K
• Form 1099-NEC
• Form 1099-MISC
• A summary of transactions from Uber or Lyft

Some drivers also bring a folder of receipts, an Excel spreadsheet, or a handwritten list of expenses.

While this is a good start, it’s usually not enough to properly prepare your taxes or maximize your deductions.

The Problem: Poor Record-Keeping

Being unprepared for tax filing is like showing up to an exam without studying. Unless you’re a genius, the results won’t be great.

As an Uber or Lyft driver filing Schedule C, it is your responsibility to keep accurate records so you can take full advantage of all available tax deductions. This means maintaining monthly records of your business expenses, including:

• Mileage or vehicle expenses
• Gas and maintenance
• Phone and data usage
• Tolls and parking
• Insurance and car washes

The IRS does accept spreadsheets or manual logs as long as you can provide receipts or documentation to support the numbers. However, this method is outdated, time-consuming, and prone to errors.

The Smarter Way: Automate Your Expenses

In today’s digital and AI-driven world, manually tracking expenses is inefficient. After driving all day, the last thing you want to do is sit down and organize receipts.

The best solution is to automate your bookkeeping using accounting software or expense-tracking apps.

One of the most popular options is QuickBooks Solopreneur, which automatically tracks income and expenses and generates financial reports. While it used to cost around $5 per month, pricing today is typically $20–$30 per month.

Other popular alternatives include:

• Puzzle.ai
• Wave Accounting
• Patriot Software
• Better yet, just download an expense app.

You can simply search: “QuickBooks Solopreneur alternatives” to compare options.

What You Actually Need to File Your Taxes

To properly file your taxes as a rideshare driver or independent contractor, you should provide:

• 1099-K
• 1099-NEC
• 1099-MISC
• Summary of transactions from Uber and Lyft
• Profit & Loss (P&L) Statement

What Is a Profit & Loss Statement?

A P&L Statement is a financial report that summarizes your income and expenses in proper accounting format. The IRS uses this information on Schedule C to determine your taxable business income.

Using accounting software makes generating a P&L statement simple and accurate.

Bottom Line

If you want to lower your tax bill and stay compliant, you must take control of your bookkeeping. Automating your expense tracking with the right tools will save you time, reduce stress, and help your tax professional maximize your deductions.

For Uber, Lyft drivers, and independent contractors — good records mean lower taxes.