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Baum, Smith & Clemens, LLP
CERTIFIED PUBLIC ACCOUNTANTS AND BUSINESS ADVISORS
2060 Detwiler Road, Suite 125, Harleysville, PA 19438
Phone: 215-368-5755
Fax: 215-368-7038
Email: info@bsccpas.com
Website: www.bsccpas.com
January 2025
January 2025 Q and A
QUESTION:
I worked as a ride-hailing driver for the first time in 2024. What will I have to pay tax on?
ANSWER:
Ride-hailing drivers are considered to be independent contractors. You can deduct expenses paid for your car, including gas, maintenance, and insurance. You may also include depreciation or lease payments. Keep accurate records.Alternatively, you can take the standard deduction and deduct 67 cents per mile in 2024, but be sure you track mileage explicitly driven for business.
While employees split Social Security and Medicare taxes with their employer, independent contractors are responsible for the entire amount — 15.3%. Self-employment income only applies to your net earnings or profit.
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