The problem is - your program doesn't want to recognise the "statement" that UBER gives us drivers. It should be allowed do to the first year exemption but it doesn't seem to be - so in my case, almost $3000 in deductions are unallowed because they are not on a 1099 but on a statement directly from UBER.
An Uber driver gets tips, just like a cab driver. Unlike the cab driver, the Uber doesn't get a W-2. They might get a 1099-NEC if they received incentives and they would get a 1099-K if their regular pay and tips exceed $20K. In the absence of a 1099, they still report their income, including tips. They just report it as cash income.
Tips are normal in the driver for hire industry, said industry is included in the IRS list of covered industries, tips are received and reported as income. The problem is that since they're not specifically included on a 1099, the Uber driver pays taxes on their reported tips while the cabbie. doesn't.
Next time you do a return for an Uber driver take a look at their annual statement and you'll see what I mean.
But why aren't we given the 1st year exemption that is mentioned in Guidance for Individual Taxpayers who received Qualified Tips or Qualified Overtime Compensation in 2025 Notice 2025-69??? I specifically says written statements ARE acceptable.
I am losing an almost $3K deduction - it certainly isn't right.
