topic Where does uber income go in self-employment tax? in Get your taxes done using TurboTax

Where does uber income go in self-employment tax?

Jquez — Thu, 06 Jun 2019 09:56:45 GMT

I've already entered my 1099-K UBER income in the 1099-MISC area of the "Business, Income, Expenses" subsection, and wrote in the deductions for all their fees (not sure I did it correctly) in the other/general category in this same subsection. The fourth subsection down is "Business Taxes" with a category for "Self-employment tax." When you click that you can choose the third option, "Self-employment tax." I'm assuming I must do this section since UBER is considered a small business. Is that right?

However a note appears saying, "Currently you aren't required to pay self-employment tax." Is that because I made less than $600? I only made about $488.

Thanks for your help!

Self-employment tax liability is based on your having $40...

RBBrittain — Thu, 06 Jun 2019 09:56:46 GMT

Self-employment tax liability is based on your having $400 or more "net self-employment income", which is 92.35% (to account for the deduction for one-half of SE tax) of your *net* Schedule C (or C-EZ) income. If your business deductions brought your net Schedule C income below $433.13 (92.35% of which is $400), you do not owe SE tax.

Uber itself isn't a small business; YOU are the small business. Uber (as well as Lyft and nearly all other ride-sharing companies) treats most of its drivers as independent contractors, meaning you get 1099-MISC forms and file as a self-employed person on Schedule C; if you have enough income, you also pay SE tax on Schedule SE.