Taxes for yellow and green taxi drivers.
Taxi drivers often get paid in cash and card, lease a cab by the shift, and get few tax forms. That makes good records even more important.
Taxi income and costs
| Income to report | Costs you may deduct |
|---|---|
| Card fares and app payments | Shift or weekly lease fees paid to a garage or owner |
| Cash fares and tips | Gas, if you pay for it |
| Any 1099 you receive | Tolls and parking for work trips |
| TLC license, drug test and other license costs |
Sources: IRS: About Schedule C · IRS: Topic 510, business use of car
Cash income still counts
The IRS says gig and self-employment income must be reported even when no form is issued, and that includes cash. A simple daily log of your fares and tips protects you if the IRS ever asks how you figured your income.
Source: IRS: Gig economy tax center
File your taxes and handle your TLC insurance in the same office.
Thousands of New York City drivers already insure with Syed Insurance Agency. Now the same office prepares your taxes too, with a licensed CPA, at the best price in the market. Bring your Uber or Lyft tax documents and your TLC policy, and we take care of both.
Frequently asked
Are taxi lease fees deductible?
Lease fees you pay to drive a cab for your own business are generally a business expense. We confirm the right treatment for your setup.
Do I need to report cash tips?
Yes. All income from driving, including cash fares and tips, is taxable.
Sources: IRS: About Schedule C · IRS: Topic 510, business use of car · IRS: Gig economy tax center
Figures and rules on this page come from the official and published sources linked above, as of November 2026. People and numbers in the examples are made up to explain the idea. This page is general information, not tax or legal advice for your situation, and laws change; check the linked source or ask a licensed CPA before you act.
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