Confused about your status as an Uber Eats driver? Working for Uber Eats puts you in an interesting position. 

You're not quite an employee in the traditional sense, but you're definitely earning money delivering food. 

So what exactly is your work status?

Are Uber Eats Drivers Employees or Self-Employed?

The short answer: Uber Eats drivers are classified as independent contractors, which makes them self-employed. 

This isn't just my opinion – it's how the IRS and tax authorities view your work.

When you sign up for Uber Eats, you're not going through a traditional hiring process. 

There's no employment contract or company handbook. 

Instead, you're agreeing to use Uber's platform to connect with customers who need food delivered.

This arrangement gives you flexibility but also shifts responsibility to you. 

Uber doesn't withhold taxes from your earnings or provide typical employee benefits. 

Instead, they'll send you a 1099 form (not a W-2) that reports your income to the IRS.

The IRS clearly states that gig workers, including food delivery drivers, are typically self-employed. 

TurboTax also confirms this status, noting that "being an independent contractor for Uber is considered being self-employed by the IRS."

Let's compare what this means in practice:

Many new drivers get confused about this distinction. 

You might feel like you're working "for" Uber, but legally, you're working "with" Uber as an independent business provider. 

This difference affects everything from your taxes to your daily work experience.

What Does Being "Self-Employed" Mean for Uber Eats Drivers?

Self-employment status comes with both freedom and responsibility. 

Here's what it means day-to-day:

You're Running Your Own Micro-Business

When you drive for Uber Eats, you're essentially operating a one-person food delivery business.

You decide when to work, which orders to accept, and how to manage your time. Uber simply provides the platform that connects you with customers.

This autonomy is great, but remember: Uber can deactivate your account if you violate their terms or if your ratings drop too low. 

Think of this as losing a client rather than getting fired. 

The platform sets certain parameters, but within those, you have freedom to operate as you see fit.

No Safety Net of Benefits

Unlike traditional employees, you won't get:

• Health insurance

• Paid sick days or vacation

• Retirement plans

• Unemployment insurance

• Workers' compensation

If you're doing Uber Eats as your main source of income, you'll need to arrange these protections yourself. 

This could mean purchasing health insurance through the marketplace, setting up your own retirement account, or building an emergency fund to cover time off.

Financial Ups and Downs

Your income will fluctuate based on demand, tips, and how much you choose to work. 

There's no guaranteed minimum wage or steady paycheck.

I've found that successful Uber Eats drivers treat this reality like business owners – they track earnings closely, save during busy periods, and have strategies for slower times. 

Some drivers work more during lunch and dinner rushes to maximize earnings, while others focus on weekend evenings when tips might be higher.

Multi-App Freedom

One advantage of self-employment: you can work for multiple delivery apps simultaneously. 

Many drivers use a strategy called "multi-apping," where they run Uber Eats alongside DoorDash, Grubhub, or other platforms to minimize downtime and maximize earnings.

This approach can significantly boost your income, though it requires good organization and time management skills. 

If you're interested in comparing platforms, check out this full-time driver's comparison guide that breaks down the differences.

Tax Implications for Uber Eats Drivers

The biggest practical difference between employees and self-employed contractors comes at tax time. 

Here's what you need to know:

You're Responsible for All Tax Payments

As an independent contractor, Uber doesn't withhold taxes from your earnings. You get paid the full amount, and it's up to you to set money aside for taxes. 

Jackson Hewitt confirms that "companies don't withhold taxes" for independent contractors like Uber Eats drivers.

This means you'll need to handle:

• Income tax (federal and state)

• Self-employment tax

Self-Employment Tax Hits Hard

Self-employment tax covers Social Security and Medicare, which is 15.3% of your net earnings. 

When you're an employee, you pay half of this (7.65%), and your employer pays the other half. As a self-employed person, you pay the entire 15.3%.

Let's put this in perspective with an example: If you earn $10,000 from Uber Eats in a year (after expenses), you'd owe about $1,530 in self-employment tax alone – plus regular income tax based on your tax bracket.

The IRS gig economy tax center confirms this obligation: gig workers "pay full Social Security and Medicare taxes" via the self-employment tax.

Tax Filing Requirements

If your net earnings from Uber Eats exceed $400 for the year, you must file a tax return and pay self-employment tax – even if you don't meet the threshold for regular income tax filing.

You'll typically need these forms:

• Schedule C (Profit or Loss from Business)

• Schedule SE (Self-Employment Tax)

• Form 1040 (Individual Income Tax Return)

Uber will provide:

• 1099-NEC for direct payments like bonuses or referral fees (if over $600)

• 1099-K for delivery transactions/customer payments (if thresholds are met)

Quarterly Estimated Taxes

As a self-employed person, you may need to make estimated tax payments quarterly rather than waiting until April 15. 

The IRS expects you to pay taxes as you earn income throughout the year.

The quarterly due dates are:

• April 15

• June 15

• September 15

• January 15 (of the following year)

Missing these payments can result in penalties, so mark your calendar. 

Tax Deductions – The Silver Lining

The good news? 

Being self-employed means you can deduct business expenses to reduce your taxable income. 

Common deductions for Uber Eats drivers include:

• Mileage (often the biggest deduction – track every mile!)

• Phone expenses (portion used for work)

• Hot bags and delivery equipment

• Car maintenance and repairs (proportional to business use)

• Parking fees and tolls during deliveries

• Portion of car insurance used for business

Using a mileage tracking app like Stride or Everlance can help document these expenses properly. 

The standard mileage deduction can significantly reduce your taxable income.

Pros and Cons of Being Self-Employed with Uber Eats

Let's weigh the advantages and disadvantages of this work arrangement:

Pros of Uber Eats Self-Employment

Freedom to Set Your Own Schedule

You can work whenever it suits you – early mornings, evenings, weekends, or just a few hours here and there. 

This flexibility is perfect for students, parents, or anyone juggling other commitments.

I've spoken with drivers who appreciate being able to take time off without requesting permission or finding coverage. 

If you need a day off, simply don't log into the app.

Entrepreneurial Control

Being your own boss means you can implement strategies to maximize earnings. 

You might:

• Focus on high-tip areas

• Work during peak hours

• Multi-app with other delivery services

• Develop your own system for efficient deliveries

For more insights on maximizing your earnings as an Uber Eats driver, check out these pro tips for Uber Eats drivers.

Tax Deductions

All those business expenses mentioned earlier?

They can significantly reduce your taxable income. 

In some cases, self-employed drivers pay less in taxes than W-2 employees making the same gross amount.

For example, if you drive 10,000 miles for Uber Eats in a year, the standard mileage deduction alone (around 65 cents per mile in 2025) would reduce your taxable income by $6,500.

Direct Connection Between Effort and Earnings

When you're self-employed, working more generally means earning more. 

There's no salary cap, and you can boost your income by optimizing your strategy, working more hours, or being more efficient.

Cons of Uber Eats Self-Employment

No Benefits or Job Security

The lack of benefits is a major downside. You'll need to secure your own:

• Health insurance

• Retirement savings

• Paid time off

• Disability coverage

This can be costly and complicated to arrange on your own.

Self-Employment Tax Burden

Paying the full 15.3% self-employment tax instead of splitting it with an employer hits your bottom line.

Plus, you'll need to handle more complex tax filing and record-keeping.

Many self-employed drivers find themselves scrambling at tax time because they didn't set aside enough money throughout the year. 

Remember that for every $100 you earn, around $15-30 should be saved for taxes (depending on your tax bracket).

Vehicle Expenses Add Up

Gas, maintenance, depreciation – these costs eat into your profits. 

When gas prices spike, your earnings can take a significant hit, unlike a traditional job where your paycheck stays the same regardless of fuel costs.

Tracking these expenses is crucial for accurate tax filing and understanding your true earnings.

Limited Control Over Core Business

While you have flexibility in when and how you work, Uber still controls:

• The platform and its algorithms

• Base pay rates

• Customer acquisition

• App features and policies

You can't negotiate your delivery fees or make fundamental changes to how the business works.

Do You Need to Register as a Business for Uber Eats?

Many new drivers wonder if they need to create a formal business entity to deliver for Uber Eats. 

Here's the scoop:

Sole Proprietor by Default

When you start delivering for Uber Eats, you're automatically considered a sole proprietor in the eyes of the law. 

You don't need to file any special business registration paperwork to begin – you're already operating as a one-person business under your own name.

No Business License Required (Usually)

In most locations, you don't need a specific business license just to drive for Uber Eats. 

Uber requires your driver's license, insurance, and background check, but not a business license.

That said, a few cities might have local regulations requiring food delivery people to have permits. 

It's worth checking your local government website if you're unsure.

When Should You Consider an LLC?

Some drivers ask if they should form an LLC (Limited Liability Company) for their delivery work. 

For most casual drivers, this is unnecessary. 

An LLC doesn't change your tax status – you'll still be taxed as self-employed.

The main benefit of an LLC is liability protection, but Uber provides insurance coverage when you're actively delivering, which covers most situations. 

Unless you're turning your delivery work into a larger business with employees or significant assets, a sole proprietorship is usually sufficient.

Record-Keeping Is Essential

Even without formal business registration, treat your delivery work like a business when it comes to record-keeping:

• Track all business mileage

• Save receipts for expenses

• Keep a log of delivery hours

• Set aside money for taxes in a separate account

These habits will make tax filing easier and help you understand your true earnings.

Frequently Asked Questions (FAQs)

Q1: Do I have to pay taxes if I earned under $600 with Uber Eats?

Yes. All income is technically taxable, regardless of the amount. The $600 threshold only determines whether Uber is required to issue you a 1099 form.

If you earned less than $600, you won't receive a tax form, but you're still legally obligated to report that income.

 However, if your net earnings (after expenses) were under $400 for the year, you wouldn't owe self-employment tax – though you might still owe income tax depending on your overall tax situation.

Q2: What tax forms do Uber Eats drivers need to file?

As an Uber Eats driver, you'll typically file:

• Schedule C (Profit or Loss from Business)

• Schedule SE (Self-Employment Tax) if net earnings exceed $400

• Form 1040 (Individual Income Tax Return)

Uber will provide you with a 1099-NEC and/or 1099-K if you meet certain earnings thresholds, but you must report all income even if you don't receive these forms.

Q3: Can I list Uber Eats on my resume or job applications?

Absolutely. You can list it as "Self-Employed Delivery Driver – Uber Eats" with the dates you worked. 

Highlight skills you've developed like time management, customer service, navigation, and problem-solving.

Many employers value the initiative and work ethic shown by gig workers. 

Your experience demonstrates reliability and self-motivation – qualities that transfer well to many job settings.

Q4: Does Uber provide any insurance or benefits to drivers?

Uber provides limited insurance coverage when you're actively delivering. 

This typically includes:

• Third-party liability coverage (if you cause damage to someone else's property or injury)

• Contingent comprehensive and collision coverage (in some markets)

• Occupational accident insurance (in some locations)

However, Uber does not provide health insurance, workers' compensation, retirement benefits, or paid time off. 

In some states like California (under Prop 22), drivers may receive limited healthcare stipends if they meet certain criteria.

Q5: What if I only do Uber Eats part-time? Am I still self-employed?

Yes. Whether you deliver for one hour a week or fifty, you're still classified as an independent contractor during that work. 

Part-time or full-time status doesn't change your classification.

You'll still need to track expenses, report income, and pay applicable taxes on your earnings. 

The only difference is that with fewer hours, your tax liability will likely be smaller.

Making the Most of Your Self-Employment Status

Now that you understand your status as a self-employed contractor, here are some tips to thrive:

Embrace the Business Owner Mindset

Treat your Uber Eats work like a business, not just a job. This means:

• Setting clear working hours

• Tracking your expenses meticulously

• Analyzing which areas and times are most profitable

• Setting income goals and monitoring your progress

Protect Your Financial Future

Since you don't have employer benefits, create your own safety net:

• Open a separate business bank account for Uber Eats income

• Set up automatic transfers for tax savings (15-30% of income)

• Research health insurance options through the marketplace

• Consider a Solo 401(k) or SEP IRA for retirement savings

Maximize Tax Advantages

Work with a tax professional who understands gig economy work to ensure you're claiming all eligible deductions. The money you spend on tax advice often pays for itself in tax savings.

For those wanting to diversify their gig work, explore these jobs like Instacart for additional income streams that leverage similar skills.

The Bottom Line on Uber Eats and Self-Employment

Yes, Uber Eats is considered self-employment. You're an independent contractor running your own delivery service using Uber's platform.

This status comes with both freedom and responsibility. You enjoy flexibility and independence but must handle your own taxes, benefits, and business expenses.

By understanding these implications, you can make informed decisions about whether Uber Eats fits your needs and how to maximize the benefits while minimizing the drawbacks of self-employment.

The most successful Uber Eats drivers I've encountered approach their work with an entrepreneurial mindset. They track their numbers, optimize their strategies, and treat driving like the business it legally is.

Ready to take your Uber Eats driving to the next level? 

Check out our Uber Eats pros and cons guide to get a fuller picture of what to expect from this gig work opportunity.

Drive smart, keep good records, and make the most of your self-employed status!