Why Uber Eats drivers are independent contractors, not employees
Uber classifies everyone who delivers through Uber Eats as an independent contractor rather than an employee—you’re running your own small delivery business, not working a job with a boss withholding your taxes. That means nothing gets taken out of your pay, and you’re responsible for calculating and paying your own income tax and self-employment tax.
Every dollar you earn is taxable and must be reported, whether or not a 1099 arrives. There’s no minimum below which delivery income becomes tax-free. On top of that, $400 or more in net self-employment earnings for the year creates a filing requirement on its own and triggers self-employment tax.
1099-K vs. 1099-NEC: which forms you’ll get
| Form | What it reports | When you get it |
|---|---|---|
| 1099-K | Gross delivery earnings paid through the app, including tips | If you earned more than $20,000 and completed more than 200 transactions in the year (lower thresholds may apply in some states) |
| 1099-NEC | Non-delivery earnings, like referral bonuses or promotions | If you earned $2,000 for 2026 ($600 for 2025) or more from those non-delivery sources |
Most drivers fall under the 1099-K threshold and won’t receive one. You can opt in to receive an Uber tax summary and 1099 forms even below the threshold by updating your tax settings in the Uber Driver app or driver web portal, which can help if you want documentation to support the qualified tips deduction covered below.
If you drive for both Uber (rides) and Uber Eats (deliveries) using the same account, your earnings from both are combined for purposes of hitting these thresholds, and you’ll typically get one combined tax summary rather than two separate ones.
How much you’ll owe and how to estimate it
You owe regular income tax on your net earnings, plus a flat 15.3% self-employment tax (12.4% for Social Security and 2.9% for Medicare) covering both the employee and employer share that a traditional job would otherwise split with you. You only pay that self-employment tax on 92.35% of your net earnings. One offset: you can then deduct half of your self-employment tax (the employer-equivalent portion) as an adjustment on your income tax return. It doesn’t reduce the SE tax itself, but it lowers your taxable income.
A common rule of thumb is to set aside around 30% of net income for taxes throughout the year.
Deductions delivery drivers can track and claim
As a delivery driver, there are several deductions you can claim, including relevant expenses you can expense, such as:
- Mileage: The simplest option is the standard mileage rate—70¢ per business mile for 2025 and 72.5¢ for 2026 (76¢ from July 1). Or deduct the business-use share of your actual vehicle expenses; you pick one method per vehicle, so track your miles either way.
- Phone bill: The business-use share of your cell phone plan, since the app runs on it.
- Hot bags and delivery equipment: Insulated bags and other supplies purchased specifically for deliveries.
- Parking and tolls: Costs incurred while delivering, tracked separately from your mileage deduction.
- Insurance and registration: The business-use share of your auto insurance and vehicle registration.
- Qualified Business Income (QBI) Deduction: As a sole proprietor, a driver may qualify to deduct up to 20% of net business income under §199A.
- Qualified tips (tax years 2025–2028): As an app-based delivery driver, you can deduct up to $25,000 of qualified tips—the voluntary tips customers add through the app. Unlike your other write-offs, it lowers your income tax only, not your 15.3% self-employment tax, and it phases out above $150,000 (300,000 if married filing jointly).
How to make estimated quarterly payments
- Estimate your net Uber Eats profit for the quarter after subtracting deductible expenses.
- Calculate roughly 30% of that profit to cover income tax and self-employment tax combined.
- Submit the payment using Form 1040-ES by the quarterly deadline (April 15, June 15, September 15, and January 15 of the following year).
If you expect to owe $1,000 or more for the year after subtracting any withholding from other income, the IRS generally expects you to pay as you go through these quarterly payments. Paying it all at once in April instead can trigger an underpayment penalty.
