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, (khohn@bonadio.com) is a senior accountant, and Andrea Steciuk (asteciuk@bonadio.com) is an incharge accountant on the tax team in the Bonadio Group's Syracuse office.

LONDON--(BUSINESS WIRE)--
Canopius Group (“Canopius”, or the “Group”), a leading international specialty and P&C (re)insurer, today announces that Samsung Fire & Marine Insurance (“SFMI”) has entered into an agreement to acquire the remaining 60% stake in Canopius, alongside funds managed by global investment firm KKR, and Korea Investment Corporation (“KIC”).

The outstanding shares are being acquired from Canopius’ other existing shareholders, including Fidentia Fortuna Holdings, the controlling consortium led by global private investment firm Centerbridge Partners.

SFMI will acquire an additional 40.6% stake in Canopius out of the remaining 60%, increasing its total ownership to 80.6% through this transaction - KKR and KIC will hold 12.1% and 7.3% respectively. (The final shareholding is subject to minor adjustments at closing).

KKR intends to drive value creation and support Canopius’ continued growth by leveraging its global platform and operational, strategic, and M&A expertise.

KIC, the sovereign wealth fund of the Republic of Korea, participated in the co-investment as part of its strategic investment initiative aimed at supporting Korean companies in their global expansion.

Since its initial investment in 2019, SFMI has strengthened its strategic partnership with Canopius. SFMI increased its stake to 40% through investment in 2025, and will secure a controlling interest through this latest transaction. This agreement marks the culmination of a strategic partnership built deliberately over seven years, through greater ownership and increasing strategic and operational collaboration. With this transaction, SFMI is fully committed to preserving Canopius’ strengths, with the overall objective to create the leading global specialty insurer across Lloyd’s, the U.S. and Asia Pacific.

Munhwa (Marvin) Lee, Chief Executive Officer & President of Samsung Fire & Marine Insurance, said: "This acquisition marks a pivotal step in our journey towards becoming a truly global insurer. Building on seven years of trust between Canopius and SFMI, we will combine our strengths to solidify our position in the Lloyd’s market and pursue further global expansion, including in the US." He added, "We will fully support Canopius, enabling both companies to succeed together while preserving its expertise and autonomy."

Neil Robertson, Group Chief Executive Officer of Canopius Group, said: “SFMI has grown to know this business over the past seven years. They have watched, at close quarters, what we have built, and they are enticed by the exciting plans we have evolved, and they have chosen to back it in full. There is no greater compliment a partner can pay, and we are grateful for the confidence they are placing in us. What this brings Canopius is permanent capital and an owner with a long-term view; we will retain the same appetite, the same discipline and the same people alongside our clients and brokers. For everyone here this is a launch pad rather than a finish line, and I am incredibly optimistic about what we will build next. I would also like to thank Centerbridge and the other consortium partners for their support and partnership over the last few years."

Centerbridge Partners Senior Managing Directors Ben Langworthy and Matthew Kabaker said, “It has been a privilege to support Canopius on its journey to becoming one of the world's leading specialty underwriters. Alongside the Group's management team and SFMI, we supported a period of substantial growth and transformation. Through strategic investment, operational enhancement and a disciplined focus on long-term value creation, Canopius has strengthened its market position, expanded its global footprint and enhanced its long-term growth prospects. Together, we helped build a stronger platform for sustained growth. We are proud of the value created during this partnership and wish the company, its management team and SFMI every success in the years ahead.”

Michael Small, Partner, Credit & Markets at KKR, said: “This transaction reflects the value of flexible, long-term capital in supporting a high-quality business with a differentiated global franchise. We look forward to supporting Canopius in its next phase of growth, drawing on KKR’s global network and deep operational and sector experience across insurance and reinsurance.”

Il Young Park, KIC CEO, said: “KIC will continue to actively participate in a diverse range of investments and seek opportunities to enhance the competitiveness of Korean industry through the overseas expansion of Korean companies.”

The transaction is subject to customary closing conditions, including required regulatory approvals.

About Canopius

Canopius is an international specialty and P&C (re)insurer. Canopius underwrites insurance products on several platforms to offer a wide range of specialty solutions. Our offices are located in Australia, Bermuda, Singapore, the UK and the U.S. We underwrite through Lloyd’s Syndicate 4444 (managed by Canopius Managing Agents Limited), a US surplus lines insurer, Canopius US Insurance, Inc and Canopius Reinsurance Ltd, a Bermuda based Class 4 Reinsurer. By working together across regions, we create global insurance solutions in more than 130 countries. For more information, visit www.canopius.com or find out more via LinkedIn.

About Samsung Fire & Marine Insurance

SFMI is the leading non-life insurance company in Korea, headquartered in Seoul. In addition to property & casualty business, SFMI provides a variety of insurance products and services such as corporate pensions, annuity and health insurance. SFMI’s shares are listed on the Korea Exchange and is the largest non-life insurance company by market capitalisation as of 2025. S&P and A.M. Best have affirmed ratings of AA and A++ respectively. For more information, visit www.samsungfire.com or find out more via LinkedIn.

About Centerbridge Partners

Centerbridge Partners, L.P. is a private investment management firm employing a flexible approach across investment disciplines — Private Equity, Private Credit and Real Estate — in an effort to develop the most attractive opportunities for our investors. The Firm was founded in 2005 and, as of December 31, 2025, has approximately $46 billion in assets under management with offices in New York and London. Centerbridge is dedicated to partnering with world-class management teams across targeted industry sectors and geographies. For more information, please visit www.centerbridge.com | LinkedIn.

About KKR

KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer retirement, life and reinsurance products under the management of Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com. For additional information about Global Atlantic Financial Group, please visit Global Atlantic Financial Group’s website at www.globalatlantic.com.

About KIC

The Korea Investment Corporation (KIC) is the sovereign wealth fund of the Republic of Korea. We manage public funds entrusted by the Korean government and Bank of Korea, investing across diverse asset classes. Our goal is to increase sovereign wealth and help develop the domestic finance industry. Learn more at www.kic.kr/en/.

View source version on businesswire.com: https://www.businesswire.com/news/home/20261109534243/en/

For KKR

Wei Jun Ong

+65 6922 5813

WeiJun.Ong@kkr.com

James Jarman

+65 8870 6452

James.Jarman@kkr.com

Source: KKR