vehicle insurance for an Uber driver.

[burton1968]

Hi, I've only been driving Uber since November 7th, 2022. I'm not sure about claiming expenses such as vehicle insurance. In Turbotax, it just says to add the cost of vehicle insurance. Would you calculate how much insurance would have cost for the 2 months I've done Uber or would I enter insurance costs for the whole tax year? If someone could clarify this for me it would be greatly appreciated.

[Zack1103 · Accepted solution]

You are considered self-employed, and you can deduct the business-related expenses associated with your work, including the cost of vehicle insurance. You can deduct the portion of your insurance costs that relates to your business use of the vehicle, based on the percentage of time that you use your vehicle for business purposes.

For example, if you use your vehicle 50% of the time for Uber driving and 50% of the time for personal use, you can deduct 50% of your insurance costs as a business expense on your tax return.

Also,  if you are using the actual expense method.  With the actual expense method, you must keep track of all your work and personal mileage, and all your car expenses (gas, oil changes, tires, other maintenance and repairs, depreciation, and insurance).  Then you can deduct the percentage of actual expenses which is your percentage of work mileage.

You can deduct the portion of your vehicle insurance costs that relates to your business use of the vehicle. Since you have only been driving for Uber since November 7th, 2022, you can only deduct the portion of your insurance costs that relates to the business use of your vehicle during that time.

For more information, please see our TurboTax FAQ. 

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