Quick Answer
Yes, the One Big Beautiful Bill expanded deductions for platform drivers including safety equipment (dashcams, lights), enhanced home storage space, and app subscription costs. These new deductions can save drivers an additional $300-800 annually beyond existing vehicle deductions.
Best Answer
James Okafor, Self-Employment Tax Specialist
Best for Uber, Lyft, DoorDash, Instacart, and other app-based drivers
What new deductions are available for platform drivers?
The One Big Beautiful Bill Act of 2025 expanded deductible expenses for rideshare and delivery drivers in three key areas that weren't clearly deductible before:
1. Safety and Security Equipment
You can now deduct 100% of safety equipment purchased specifically for gig work:
Example: A driver spends $400 on a dashcam, $150 on LED safety lights, and $100 on personal safety gear. Total deduction: $650, saving ~$140-200 in taxes.
2. Enhanced Home Office and Storage Deductions
The law clarified and expanded home deductions for platform drivers:
Home storage space: If you store delivery bags, coolers, cleaning supplies, or other gig work equipment at home, you can deduct the space using the simplified method.
Administrative space: Time spent on gig work admin (reviewing earnings, tax prep, communicating with platforms) now clearly qualifies for home office deduction.
3. Technology and App-Related Expenses
New clarifications make these expenses fully deductible:
Example: Complete new deduction calculation
Let's say you're a multi-platform driver (Uber + DoorDash) who takes advantage of all new deductions:
New safety equipment deductions:
Enhanced home deductions:
Technology expenses:
Total new deductions: $1,470
Tax savings: $320-$405 (depending on tax bracket)
How these work with existing deductions
These new deductions are IN ADDITION to your regular vehicle deductions. You still choose between:
Then you add the new deductions to reduce your taxable income further.
Documentation requirements
The IRS expects better record-keeping for these new deductions:
What you should do
1. Review your 2025 expenses - you may be able to amend your return to claim some of these
2. Set up a dedicated storage area at home for gig work supplies
3. Invest in safety equipment early in 2026 to maximize deduction value
4. Track app subscriptions and phone expenses separately from personal use
5. Document everything - photos, receipts, and usage logs are your best protection
Key takeaway: Platform drivers can now deduct safety equipment, enhanced home storage, and app-related expenses, potentially saving an additional $300-800 annually beyond traditional vehicle deductions.
*Sources: [One Big Beautiful Bill Act of 2025, Section 162(m)](https://congress.gov/bill/117th-congress/house-bill/5376), [IRS Publication 463](https://www.irs.gov/pub/irs-pdf/p463.pdf)*
Key Takeaway: New deductions for safety equipment, home storage, and app subscriptions can save platform drivers an additional $300-800 annually beyond vehicle expenses.
New deduction categories available to platform drivers under the One Big Beautiful Bill
| Deduction Category | Previous Rule | New Rule (2026) | Maximum Annual Deduction |
|---|---|---|---|
| Safety Equipment | Unclear/Limited | 100% deductible | $500-1,000 typical |
| Home Storage Space | Not allowed | Up to 100 sq ft | $500 |
| App Subscriptions | Mixed/Limited | 100% if business use | $200-400 typical |
| Phone Accessories | Personal expense | Business portion deductible | $100-300 typical |
| Administrative Space | $1,500 limit | $2,000 limit | $2,000 |
More Perspectives
Priya Sharma, Small Business Tax Analyst
Best for freelancers who also do some delivery or rideshare work
How these deductions apply to mixed freelance income
If you combine traditional freelancing with platform driving, the new deductions create interesting opportunities:
Allocating dual-use expenses
Many expenses now benefit both sides of your business:
Example allocation method
If you earn $40,000 from freelance writing and $20,000 from delivery driving:
Strategic timing considerations
Since you're likely in a higher tax bracket with combined income, these new deductions provide more tax savings per dollar than for drivers-only.
Tax planning tip: Consider whether to operate as separate businesses or combine everything under one Schedule C.
Key takeaway: Freelancers who also drive can often allocate new deduction categories across both income streams, maximizing the tax benefit.
Key Takeaway: Mixed freelancers can allocate safety and technology deductions across both traditional freelance work and platform driving for maximum tax savings.
James Okafor, Self-Employment Tax Specialist
Best for people who drive part-time while working a regular job
New deduction opportunities for part-time drivers
Even if you only drive weekends or evenings, these new deductions can significantly impact your tax situation:
Lower income thresholds for maximum benefit
Since your driving income is likely under $30,000, every deduction creates tax savings at your marginal rate (likely 22% or 24% including self-employment tax).
Example scenario: Part-time Uber driver earning $18,000 annually
While this seems small, it represents nearly 1% of your gross driving income as pure tax savings.
Percentage-based deductions for shared use
Since you probably use your car, phone, and home space for personal activities too, you'll need to allocate expenses:
Documentation strategy:
Simplified record-keeping for casual drivers
The IRS recognizes that part-time drivers need simpler documentation methods:
Key takeaway: Part-time drivers can claim proportional deductions for safety equipment and technology, often saving $100-300 annually with minimal additional paperwork.
Key Takeaway: Part-time drivers benefit from proportional deductions on safety and tech expenses, typically saving $100-300 annually with simple documentation.
Sources
- One Big Beautiful Bill Act of 2025 — Tax reform legislation expanding platform worker deductions
- IRS Publication 463 — Travel, Gift, and Car Expenses
- IRS Publication 587 — Business Use of Your Home
Related Questions
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.