Lyft Driver Taxes in West Virginia - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for Lyft Drivers in West Virginia

Navigating the Mountain State’s scenic routes as a Lyft driver offers flexibility, but also brings unique tax responsibilities. As an independent contractor, earnings from Lyft are considered self-employment income, requiring diligent record-keeping and accurate tax filing.

The IRS requires all Lyft drivers to report their income on Schedule C (Profit or Loss From Business) with Form 1040. Furthermore, because no taxes are automatically withheld from your Lyft earnings, drivers are responsible for paying self-employment taxes, which cover both Social Security and Medicare. Failure to properly account for these taxes can result in penalties and interest.

How West Virginia Handles Gig Worker Taxes

As a resident of West Virginia, a state income tax return is required, regardless of income level. West Virginia employs a graduated income tax system, meaning the tax rate increases as your income increases. For the 2025 tax year, West Virginia utilizes several tax brackets, and rates are subject to change, so staying updated is crucial. Lyft drivers operating within the state must report their net earnings (income after deductions) on the West Virginia income tax return. The primary form for self-employed individuals to use is Form WV-1040, along with Schedule S, which is used to calculate income from sources other than wages. It's important to note that West Virginia also allows for certain deductions that can reduce your taxable income, such as those related to business expenses. The state tax year follows the federal tax year, ending December 31st. Accurate record-keeping of all income and expenses is vital for a smooth filing process. West Virginia also offers resources for small business owners, including information on estimated tax payments to avoid underpayment penalties. Consulting with a tax professional familiar with West Virginia tax law is highly recommended, especially when navigating the complexities of self-employment income.

For more information and resources, please visit the West Virginia State Tax Department: https://tax.wv.gov/

Top Tax Deductions for West Virginia Drivers

• Standard Mileage: The #1 deduction for most drivers. The 2025 rate is 70 cents per mile. Given West Virginia’s rural landscape and potential for longer trips between fares, the standard mileage rate is often a very beneficial option.
• Tolls & Parking: While West Virginia doesn’t have extensive toll road systems, any tolls incurred while actively driving for Lyft are deductible. Parking fees directly related to picking up or dropping off passengers 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 washes, phone mounts, dash cams, first-aid kits, and insulated food bags used for deliveries (if applicable) 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 your employer withholds these taxes, as a Lyft driver, you are responsible for paying both the employer and employee portions, totaling 15.3% on net earnings over $400. This is a significant tax liability, so planning and making estimated tax payments throughout the year is crucial to avoid penalties.