Lyft Drivers: Tax Deductions for Mileage and Using a Rental Car – TurboTax Tax Tip Video

Lyft Drivers: Tax Deductions for Mileage and Using a Rental Car – TurboTax Tax Tip Video


Hi, this is Lisa Skelly, one of the tax and Lyft partner-experts here at TurboTax. I want to talk to you a little bit about car mileage and car rental. Now, as a Lyft driver, one of the biggest expenses you can write-off will be your vehicle. The first thing you need to know are your business miles and if you go to your dashboard you’ll actually see those in your stats. Now, in your driver app, you’re going to see two different numbers for your miles. You want to combine those together. Those are all business miles that you’ll be able to deduct. Now that you know your business miles, you actually have two choices in how to deduct it. You can do mileage, which is a flat rate, or actual expenses. So, that is going to be things like gas and maintenance on your car, along with the cost of the car itself. TurboTax Self-Employed will actually gather all of the information for both and in the end we’ll show you the difference to help you chose which one to take. Now, if you’ve rented a car, either through the Lyft program or let’s say your car is in the shop but you still want to be a Lyft driver, that’s going to fall under a slightly different category than your regular car will. TurboTax Self-Employed will guide you as where to put that. It’s going to fall under rental equipment. So, now that you know about mileage, just remember you can only write off the business portion. So, if you use the car for personal also, you need to be able to track both your total miles for the year and your business miles. A great way to do that is to use something like the QuickBooks Self-Employed mileage tracker.