A senator is pressing the IRS to raise the mileage deduction that Uber drivers rely on to offset spiking gas prices

""For many self-employed individuals who rely on driving, these prices are unsustainable," Gallego wrote. "Given the significant increase in gas prices, I urge the IRS to raise the standard mileage rate at a rate that proportionately reflects gas price increases.""

"Rising gas prices after the US and Israel began a war with Iran have been a major concern for ride-hailing and delivery gig workers. Drivers for Uber and Lyft told Business Insider that the higher prices are eating into their profits, and some said they are getting more selective about which trips they take as a result."

"Gallego's letter asks Bessent to increase the mileage deduction and make it retroactive to March 1, 'when the major gas price increases began.' The IRS has done it before."

Senator Ruben Gallego has urged the IRS to increase the per-mile tax deduction for gig workers, currently at 72.5 cents, to help offset rising gas prices. With gas prices nearing $4 a gallon, Gallego emphasized the unsustainable nature of these costs for self-employed drivers. He requested that the deduction be retroactive to March 1, coinciding with significant price increases. In response to the situation, some delivery apps are offering incentives to drivers to mitigate the impact of higher fuel costs.

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