Updated for 2026 (Filing 2025 Taxes)
Navigating the Sunflower State as an Uber driver offers flexibility, but it also comes with tax responsibilities. As an independent contractor, understanding how to properly report income and claim deductions is crucial for maximizing earnings and avoiding potential issues with the IRS and the Kansas Department of Revenue.
Federal law requires Uber drivers to report their earnings as self-employment income on Schedule C (Profit or Loss From Business) when filing their annual tax return (Form 1040). Earnings over $400 necessitate the payment of self-employment taxes, which cover both Social Security and Medicare contributions. Platforms such as Uber do not withhold these taxes, making proactive tax planning essential.
As a resident of Kansas, a state income tax return is required, regardless of income level. Kansas utilizes a graduated income tax system, meaning the tax rate increases as your income rises. For the 2025 tax year, Kansas taxpayers filing as self-employed individuals will primarily use Form K-40 to report their income. The income reported on your federal Schedule C will flow to your Kansas return. Kansas also requires Schedule K-1 (Form K-40) to report income from partnerships, S corporations, trusts, and estates. It's important to note that Kansas offers several deductions and credits that can reduce your state tax liability. These include standard or itemized deductions, and potential credits for things like property taxes paid. Kansas also has a provision for deducting qualified business income (QBI), similar to the federal Section 199A deduction, which can be particularly beneficial for Uber drivers. Keep meticulous records of all income and expenses to accurately calculate your Kansas tax obligations. The Kansas Department of Revenue provides detailed information and resources on their website: Kansas Department of Revenue. Failure to file and pay state taxes on time can result in penalties and interest.
Key Warning: You cannot deduct both the standard mileage rate and actual car expenses (like gas, oil changes, repairs, insurance, and depreciation) in the same tax year. Choose the method that yields the larger deduction.
The 15.3% self-employment tax comprises two components: 12.4% for Social Security and 2.9% for Medicare. Because Uber and similar platforms classify drivers as independent contractors, they do not withhold these taxes from your earnings. Therefore, it is your responsibility to calculate and pay this tax, typically through estimated tax payments made quarterly to the IRS. This prevents underpayment penalties at the end of the year.
Estimate your taxes using current IRS rules.
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*Disclaimer: This is a simplified estimate. Includes SE Tax, State Tax, and QBI Deduction impact. Consult a CPA.
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