Upstate New York has finally joined the rest of the country and now allows ride-sharing companies to operate in the area. After much dispute, lawmakers agreed to a 4 percent sales tax on each fare for the state's general fund, plus an additional 2.5 percent surcharge for workers' compensation. Although Uber will handle collecting and remitting these fees, if you are thinking of signing up as a driver to earn some extra money, there are several other tax issues to consider before accepting your first ride.

Uberis policy is to treat drivers as independent contractors, meaning that drivers are considered to be self-employed business owners. Because of this, it is essential for drivers to keep good records of income, business expenses, and mileage. Recent tax cases have highlighted the importance of proper documentation, indicating that estimated deductions lacking support will not hold up under audit

Income

At year-end, Uber will provide its drivers with a Form 1099 (instead of Form W-2) showing the amount of money earned during the year. The IRS will ¿so receive a copy and check that the amount matches what is reported on the driver's tax return. There are two variations of the 1099 form depending on how much was earned:

1. Form 1099K will be provided if both 200 ride transactions occurred and earnings exceeded $20,000.

2. Form 1099-Misc will be provided for earnings greater than $600, but less than $20,000. If earnings were below the $600 threshold, drivers will not receive a 1099 form, but are still required to report any income on their tax return.

The amount on the 1099 may be higher than expected because it will include the fees that Uber takes as its cut from each rider's fare. The amount of Uberis fees will be shown on a year-end tax summary that Uber will provide, and can be deducted as an expense on the driver's return, along with other business-related expenses.

Expenses

The costs for operating their vehicles for business is another significant deduction that drivers can claim. Generally, the greater of two calculations can be deducted, but a few exceptions apply. Drivers should check with a tax professional if their vehicles are leased or if they previously claimed depreciation on them for a different business. The two methods for calculating vehicle expenses are:

1. Standard mileage: Deduct 53.5 cents per mile (2017 rate) for every business mile driven. This method is the simplest and often results in the highest deduction.

2. Actual expenses: Expenses include gas, oil, tires, insurance, registration, lease payments, depreciation, maintenance, and repairs. If the vehicle is used for personal and business use, expenses are prorated to the business amount by applying the percentage of business miles divided by the total miles driven during the year. This method requires more documentation and tracking of expenses, but if major repairs were made, it may result in a higher deduction.

For either method, the driver must know the number of miles driven for business. Uber will track the miles driven with passengers in the car, but drivers can also count the distance driven to pick up riders, the fuel used while waiting for riders, and the miles driven toward a pickup that gets canceled. It is important to keep a mileage log to have as support for the number of business miles claimed in the event of an IRS audit There are several apps you can use to track mileage - standard paper and pencil will work, too.

In addition to vehicle expenses, drivers can deduct other costs associated with operating their ride-sharing business. It is important to document and claim only expenses incurred for the business. Personal expenses cannot be deducted. For mixeduse items, only the portion used for the business can be claimed. Examples of other operating expenses are: parking fees; tolls; cell phone/data plans; additional liability insurance; AAA memberships; safety equipment and tools; car washes; tax preparation fees; and items for customers such as food, beverages, and charging cables for electronic devices.

Self-employed individuals can also deduct the cost of health-insurance premiurns, and can reduce their tax bill even more by making contributions to qualified retirement plans. There are several types of plans to choose from including traditional and Rotil IRAs, SEP and SIMPLE IRAs, and individual 401 (k) accounts. Drivers should speak with a tax or financial advisor regarding retirement options.

Estimated taxes

Uber does not withhold and remit Social Security, Medicare, or income tax for drivers. As independent contractors, drivers are on their own to timely pay federal and state income taxes, as well as a self-employment tax for their business. Self-employment tax takes the place of traditional payroll taxes and is calculated on the net income of the business after deductions at a rate of 15.3 percent Half of the self-employment tax can be deducted on the driver's income tax return. Depending on the driver's situation, quarterly estimated income tax payments to the IRS and New York State may be required. Drivers should set aside a portion of their earnings for self-employment and income taxes in order to avoid an unwanted surprise at tax time.

Starting your own business can be a rewarding endeavor, but also one that creates many tax complexities. Uber drivers should consult with a tax professional regarding actions to take to correctly report and minimize their tax liability. *

Kristin Hohn, CPA, MTAX, ([email protected]) is a senior accountant, and Andrea Steciuk ([email protected]) is an incharge accountant on the tax team in the Bonadio Group's Syracuse office.

HONG KONG--(BUSINESS WIRE)--
AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” (Excellent) of Hanwha General Insurance Company Limited (HGI) (South Korea). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect HGI’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management. The ratings also reflect the support that the company receives from its parent, Hanwha Life Insurance Co., Ltd. (Hanwha Life).

HGI’s risk-adjusted capitalisation is assessed at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), including credit for hybrid securities. HGI’s capital and surplus decreased moderately at year-end 2025, mainly due to the movement of accumulated other comprehensive income following the interest rate movement and discount rate cut under the regulatory guideline during that year. As part of its solvency management efforts amid a fast evolving economic and regulatory environment, HGI has taken various initiatives, such as issuance of subordinated bonds, asset-liability management and utilization of reinsurance. HGI has good financial flexibility as evidenced by its issuance of supplementary capital securities. While its adjusted debt leverage, including equity credit for hybrid securities, increased to 22.9% following the recent issuance of subordinated bonds in 2025, it has been maintained at a positive level with an adequate coverage ratio.

HGI’s operating performance assessment remains at an adequate level with a consolidated return-on-equity of 10.3% and a combined ratio (net/net, IFRS 17 basis) of 96.2% in 2025, as calculated by AM Best. Although the company’s long-term insurance recorded double-digit growth in insurance service revenue in 2025, the profitability of this line declined like other major players mainly driven by increased claims in medical indemnity policies and market competition. The company’s stable investment income has continued to support its bottom line.

HGI is the sixth-largest non-life insurance company in South Korea, with a market share of approximately 7% in terms of gross insurance service revenue in 2025, along with diversified product offerings with relatively higher portion in long-term insurance than its domestic peers. The company’s diversified distribution network includes affiliated general agent partners, such as Hanwha Life Financial Services, a sales-specialised subsidiary of Hanwha Life. The ratings lift considers HGI’s importance to Hanwha Life in terms of strategy and earnings contribution, as well as various forms of explicit and implicit support it receives from Hanwha Life, including capital support, co-branding to increase operational synergy and distribution.

Negative rating actions could occur if there is a significant deterioration in HGI’s balance sheet strength fundamentals. Negative rating actions could also occur if there is a sustained and material deterioration in the company’s operating performance. Positive rating actions could occur if the balance sheet strength fundamentals of both HGI and Hanwha Life demonstrate sustained improvement.

Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2026 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260724511525/en/

Minji Cha
Financial Analyst

+852 2827 3424

[email protected]

Chanyoung Lee
Director, Analytics

+852 2827 3404

[email protected]

Christopher Sharkey
Associate Director, Public Relations

+1 908 882 2310

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Al Slavin
Senior Public Relations Specialist

+1 908 882 2318

[email protected]

Source: AM Best