Uber Driver Taxes in Nebraska - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for Uber Drivers in Nebraska

Navigating the plains and city streets of Nebraska as an Uber driver offers flexibility, but also brings unique tax responsibilities. As an independent contractor, earnings from Uber and other gig platforms are considered self-employment income, requiring diligent record-keeping and accurate tax filing.

The IRS requires Uber drivers to report their income and expenses on Schedule C (Profit or Loss From Business) when filing their federal income tax return. Crucially, this income is also subject to self-employment tax, covering both Social Security and Medicare taxes, which are not automatically withheld from your earnings. Proper planning and estimated tax payments throughout the year can help avoid penalties.

How Nebraska Handles Gig Worker Taxes

As a resident of Nebraska, a state income tax return is required, regardless of whether you itemize deductions on your federal return. Nebraska utilizes a graduated income tax system, meaning the tax rate increases as your income rises. For the 2025 tax year, Nebraska’s income tax brackets are expected to remain similar to prior years, ranging from 2.66% to 6.84%. Self-employed individuals in Nebraska will primarily use Form 1040-ES (Estimated Tax for Individuals) for quarterly estimated tax payments and Form NE 1040 (Nebraska Individual Income Tax Return) to file their annual state income tax return.

Nebraska also allows for a deduction for federal income tax paid. This can significantly reduce your state tax liability. Furthermore, Nebraska conforms to many federal deductions, including those related to self-employment. It’s important to note that Nebraska has specific rules regarding deductions and credits, so consulting the Nebraska Department of Revenue website is highly recommended. The state also offers various credits that may be applicable to self-employed individuals, such as credits for property taxes paid. Accurate record-keeping of all income and expenses is vital to ensure you claim all eligible deductions and credits, minimizing your tax burden.

For more information and resources, please visit the Nebraska Department of Revenue: https://revenue.nebraska.gov/

Top Tax Deductions for Nebraska Drivers

• Standard Mileage: The #1 deduction for most drivers. The 2025 rate is 70 cents per mile. Given Nebraska’s relatively stable gas prices, the standard mileage rate is often the most advantageous method for calculating vehicle expenses.
• Tolls & Parking: While Nebraska doesn’t have extensive toll roads, any tolls incurred while actively driving for Uber are deductible. Parking fees directly related to pickups and drop-offs are also deductible.
• Phone & Data Plan: You can deduct the percentage of your phone and data plan that is used for business purposes. Keep a log of your business usage to support this deduction.
• Vehicle-Related Costs: Expenses like car cleaning supplies, phone mounts, dash cams, and insulated food bags used for deliveries are deductible.

Key Warning: You cannot deduct both the standard mileage rate and actual car expenses like gas or repairs in the same year. Choose the method that yields the larger deduction.

Understanding the 15.3% Self-Employment Tax

This tax covers both Social Security and Medicare taxes. Unlike traditional employment where these taxes are withheld from your paycheck, as an Uber driver, you are responsible for paying both the employer and employee portions, totaling 15.3% on net earnings over $400. Remember to factor this into your tax planning throughout the year.