How to File Taxes as an Uber Driver / Partner?
In this article I’ll help you file your taxes as an Uber driver in Canada. We are going to look at different ways how you can write off your Uber taxes and save you some money and some extra tips on tax filing from experienced drivers.
For legal purposes, I’m not a CPA in Canada and this article is useful information to give you an idea on how you can file my taxes as an Uber driver / partner. Please consult to your accountant prior to filing your taxes.
Filing Taxes for Uber Drivers and Partners.
Uber drivers are independent contractors that collect GST (Ontario) and GST (Alberta) to be remitted to the CRA (Canada Revenue agency).
Uber drivers are self-employed and you will not get a regular T4 slip with CPP, EI and your income tax is not subtracted from your income. As self-employed, you will have to add T2125 Statement of Business Activities, that will cover your income and expenses as an Uber partner.
How to pay fewer taxes as an Uber driver (partner,) and what can I write off my tax?
Forget the “Driver” part for now. You are a partner for your tax filing purposes.
Let me explain:
- Uber is a business platform and you are a business owner in the eyes of Canada Revenue Agency.
- As a business owner you are much larger then you think you are, for tax purposes.
With that being said, you can write off anything associated to your business expanse as a business owner.
Let’s look at the two categories for tax purposes:
1) Uber Drivers.
Uber drivers are just like any other drivers, they can write off their vehicle expanses such as:
- Gas / Mileage while driving for Uber.
- Vehicle maintenance costs, such as service and any repairs.
- Part of your cellphone bill.
- Food / water given to passengers.
- Car wash.
- Expenses related to your main business activity (Driving).
2) Uber Partners.
Every driver is a partner for Uber, if you are driving for Uber, you are a partner. This means you can take the Uber Driver’s list above and add to the following:
- Part on your internet bill.
- New laptop.
- Website hosting and domain.
- Business lunch with another Uber driver or Blogger.
- Part of your mortgage (Talk to your CPA).
- Other business activities, because you may have a different business when you are not driving for Uber.
In Canada, Uber requires you to be a sole proprietor, but it does not mean that you can’t run your business under the corporate umbrella. You can be incorporated to pay fewer taxes as an Uber driver if you are doing it right. Talk to your accountant about it.
I drive for Uber, just like you. But, I’m also a blogger and YouTuber! What will I add to my expanse?
- Laptop I use for my website / videos on YouTube https://www.youtube.com/igorryltsev.
- Website hosting / domain.
- Business lunch I get with other Bloggers and business people.
- Camera, lenses, microphones, tripods, other gear I use to make videos on YouTube and host this website.
Think about what you have invested into your business and file taxes in a smart way!