Tax deduction for qualified tips

Beginning in 2025, a new federal tax law, also known as no tax on tips, allows individuals to claim an income tax deduction for qualified tips. To claim this deduction, the IRS requires that your tip income be reported on a 1099 Tax Form.

If you don’t meet the IRS threshold, you can opt in to receive Forms 1099-K (and 1099-NEC, if applicable) by updating your W-9 form through the web driver portal or the Uber Driver app. This can help support your claim for a federal deduction on qualified tips.

We recommend consulting a tax professional or service, such as TurboTax, for advice on federal and possible state deductions related to tip income.