Taxi Driver Tax System | Mileage vs Actual Expenses & Deductions

Taxi Driver Tax System

Owner-operator or leased cab · Standard mileage vs actual expenses · 2025 tax rules

Tax year 2025 Schedule C ready

Gross Income (Fares + Tips)

$0

Total Deductions

$0

Net Profit (Schedule C)

$0

Est. Self-Employment Tax

$0

Core Setup

Driver / Vehicle Type

Gross Business Income (fares + tips + 1099-K)

Total Business Miles Driven

Standard Mileage Rate (2025)

Use Standard Mileage Deduction

Multiply business miles × IRS rate (includes fuel, maintenance, insurance, depreciation)

Use Actual Expenses (fuel, repairs, insurance, etc.)

Deduct real costs + depreciation/lease. Recommended if vehicle expenses are high.

Taxi Document Checklist

Classification & Key Rules

Owner-Operator

Owns the taxi/vehicle. Can deduct actual expenses OR standard mileage. May claim depreciation, loan interest, lease payments (if financing).

Leased Cab Driver

Rents/leases the cab from a fleet. Lease payments are deductible. Cannot claim depreciation or loan interest on the vehicle.

Keep contemporaneous mileage log, credit card processing fees, tolls, and TLC/medallion fees.

Intake Questions for Taxi Drivers

• Do you own the taxi or lease from a company?
• What is your total business miles for the year?
• Do you have receipts for fuel, repairs, insurance, and lease?
• Credit card processing fees paid to Uber/Lyft/cab dispatch?
• Medallion / TLC license fees or permits?
• Any reimbursement from dispatch? (must subtract)

Expense Entry

Deduction Breakdown

Total Deductions$0

Tax Estimates

Net profit (Schedule C):$0

Self-Employment Tax (15.3% of 92.35% net):$0

QBI Deduction (20% of net profit*):$0

*QBI deduction available for sole proprietors. Standard mileage rate includes depreciation; if using actual expenses, you can claim Section 179 on vehicle (max $2.5M 2025). Credit card fees, tolls, parking, and cleaning supplies are separate.