No, the IRS does not consider this ok.  Your Uber income should be entered on Line 12 of your 1040 (Business income or (loss) and should be reported on a Schedule C.  

When you drive for Uber, you are regarded as an independent contractor, not an employee. This means that at the end of the year, you will receive a 1099 form rather than the typical W-2 you may be used to getting.

According to the IRS, as an independent contractor, you are considered as a self-employed individual operating your own business. The IRS refers to this as conducting business as a sole proprietorship. Additionally, all driving services income you earn, whether through Uber or not, also fall under this same business.

In TurboTax, we don’t create a separate entry for your 1099-K info. That's because your 1099-K income should already be included in other income such as a 1099-MISC

However, if you don't have a 1099-MISC, report your 1099-K by following these steps before you enter any expenses:

·         Click on Federal Taxes on the top row of TurboTax Deluxe Online.

·         Click Wages & Income

·         Under All Income, click Show all income

·         Scroll to Self-Employment, click Start

·         Click Yes to Did you have any self-employment income or expenses?

·         Enter any income from sales or services that weren't reported on Forms 1099-MISC

On the next screen, it will ask if you had expenses. Say "Yes"