Quick Answer
Yes, you can deduct phone expenses as a rideshare driver, but only the business portion. If you use your phone 60% for rideshare work, you can deduct 60% of your monthly bill (typically $30-50/month) plus 100% of business accessories like phone mounts ($15-40).
Best Answer
Alex Torres, Gig Economy Tax Educator
Drivers who primarily earn income from Uber/Lyft and use their phone extensively for work
How much of your phone can you deduct?
As a rideshare driver, you can deduct the business percentage of your phone expenses. The key is determining what portion you actually use for work versus personal use. According to IRS Publication 535, you must have a "reasonable basis" for calculating business use.
For most full-time rideshare drivers, business use ranges from 50-80% of total phone usage. This includes:
Example: Full-time driver phone deduction
Let's say you drive for Uber 40 hours per week and determine your phone is used 70% for business:
What accessories are 100% deductible?
Unlike your phone bill, accessories used exclusively for rideshare work are 100% deductible:
How to track and document phone expenses
1. Keep detailed records: Save monthly phone bills and receipts for accessories
2. Calculate business percentage: Track your usage for 2-3 months to establish a pattern
3. Document the calculation: Write down your methodology (e.g., "Drive 8 hours/day, use phone 6 hours for work = 75% business use")
4. Update annually: Recalculate if your driving patterns change significantly
Key factors that affect your deduction
What you should do
1. Review your last 3 months of phone bills to calculate average monthly cost
2. Estimate your business vs. personal usage percentage honestly
3. Keep receipts for any rideshare-specific accessories
4. Use our deduction finder tool to identify other missed expenses
Key takeaway: Most rideshare drivers can deduct $300-600 annually in phone expenses, plus 100% of work-specific accessories like mounts and chargers.
*Sources: [IRS Publication 535](https://www.irs.gov/pub/irs-pdf/p535.pdf), Business Expenses*
Key Takeaway: Full-time rideshare drivers typically deduct 50-80% of their phone bill plus 100% of work accessories, averaging $300-600 in annual deductions.
Phone deduction amounts by driver type and usage patterns
| Driver Type | Hours/Week | Business Use % | Monthly Bill | Annual Deduction |
|---|---|---|---|---|
| Part-time (evenings) | 10-15 | 25-35% | $75 | $225-315 |
| Part-time (weekends) | 15-20 | 35-45% | $85 | $355-460 |
| Full-time | 35-40 | 60-75% | $90 | $650-810 |
| Full-time + delivery | 45+ | 70-85% | $95 | $795-970 |
More Perspectives
James Okafor, Self-Employment Tax Specialist
People who drive part-time while maintaining a regular job, typically evenings and weekends
Calculating phone deductions as a part-time driver
As a side hustler, your phone deduction will be lower than full-time drivers, but it's still worth claiming. Most part-time drivers can deduct 20-40% of their phone expenses.
If you drive 15 hours per week (evenings and weekends), and your phone costs $75/month, you might reasonably claim 30% business use = $22.50/month or $270/year.
Don't forget the dual-use rule
Since you have a W-2 job, make sure your phone usage calculation doesn't overlap. If your employer provides a phone or reimburses phone expenses, you can only deduct the rideshare portion of your personal phone.
Documentation is extra important
The IRS scrutinizes side hustle deductions more closely. Keep a simple log for 2-3 months showing when you drive and use your phone for work. This creates a defensible business use percentage.
Key takeaway: Part-time drivers typically deduct 20-40% of phone costs, averaging $200-400 annually depending on driving frequency.
Key Takeaway: Part-time drivers can typically deduct 20-40% of phone expenses, or about $200-400 per year depending on hours driven.
Alex Torres, Gig Economy Tax Educator
First-time gig workers learning about tax deductions and business expenses
Your phone is a legitimate business expense
As a new rideshare driver, you might feel uncertain about claiming phone deductions. Don't worry — this is one of the most clear-cut business expenses you'll have. The IRS expects rideshare drivers to deduct phone costs.
Start simple with conservative estimates
For your first year, be conservative with your business use percentage. If you're unsure, estimate lower (30-40%) rather than higher. You can always adjust next year as you gain experience.
Track everything from day one
Common beginner mistakes to avoid
1. Don't deduct your entire phone bill if you also use it personally
2. Don't guess wildly at business percentages — base it on actual usage
3. Don't forget accessories — mounts and chargers count too
4. Don't mix personal and business — if you buy a case for protection while driving, that's business
Key takeaway: New drivers should start with conservative estimates (30-40% business use) and keep detailed records from their first day driving.
Key Takeaway: New drivers should conservatively estimate 30-40% business use and keep detailed records from day one to build a defensible deduction pattern.
Sources
- IRS Publication 535 — Business Expenses - guidance on deducting phone and equipment costs
Reviewed by James Okafor, Self-Employment Tax Specialist on February 28, 2026
This content is for educational purposes only and is not a substitute for professional tax advice. Consult a qualified tax professional for advice specific to your situation.