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Level 2
March 29, 2022
Solved

1099-nec

  • March 29, 2022
  • 1 reply
  • 28 views

why my nonempolyee compensation is different from what i actually got paid on uber

Best answer by ColeenD3

It's okay if the amount of your 1099-K is different from what was deposited in your bank. The amount on your 1099-K is the total amount that your customers paid. Before Uber pays you, they take out expenses like tolls, Safe Rides Fees, taxes, and other fees. That's why the amount you got paid is different from the amount on your 1099-K.

You need to report the total amount of your 1099-K, but then you also get to enter your expenses on your tax return. You only pay taxes on your net income from Uber, which is the amount of income you had after your expenses were subtracted.

Example: Your 1099-K from Uber lists $20,500. You enter this when preparing your return. Later, you enter $125 for the tolls you paid as an expense. You enter another $250 for your taxes and licenses as an expense. Your net pay for Uber comes to $20,125. You'll pay taxes on $20,125 instead of the $20,500 listed on your 1099-K.

Examples of expenses you pay to Uber are:

  • Tolls
  • Safe Rides fees
  • Split fare fees
  • Black Car Fund
  • Sales tax
  • Booking fees
  • City fees
  • Airport fees
  • Other taxes

To see the amounts of your different driving expenses (the amounts Uber took out before they paid you):

  1. Log in to Uber.com and select the Tax Information page at the top.
  2. In the Tax Documents section, locate your Yearly Summary for 2021 and Download it.

After downloading, open your Yearly Summary and you can see the amount Uber took out from your pay for each expense category.

1 reply

ColeenD3
ColeenD3Answer
Level 15
March 29, 2022

It's okay if the amount of your 1099-K is different from what was deposited in your bank. The amount on your 1099-K is the total amount that your customers paid. Before Uber pays you, they take out expenses like tolls, Safe Rides Fees, taxes, and other fees. That's why the amount you got paid is different from the amount on your 1099-K.

You need to report the total amount of your 1099-K, but then you also get to enter your expenses on your tax return. You only pay taxes on your net income from Uber, which is the amount of income you had after your expenses were subtracted.

Example: Your 1099-K from Uber lists $20,500. You enter this when preparing your return. Later, you enter $125 for the tolls you paid as an expense. You enter another $250 for your taxes and licenses as an expense. Your net pay for Uber comes to $20,125. You'll pay taxes on $20,125 instead of the $20,500 listed on your 1099-K.

Examples of expenses you pay to Uber are:

  • Tolls
  • Safe Rides fees
  • Split fare fees
  • Black Car Fund
  • Sales tax
  • Booking fees
  • City fees
  • Airport fees
  • Other taxes

To see the amounts of your different driving expenses (the amounts Uber took out before they paid you):

  1. Log in to Uber.com and select the Tax Information page at the top.
  2. In the Tax Documents section, locate your Yearly Summary for 2021 and Download it.

After downloading, open your Yearly Summary and you can see the amount Uber took out from your pay for each expense category.

krderingAuthor
Level 2
March 29, 2022

so my box 1, which is nonemployee compensation the amount there is 662.92. and my gross payment is 2872.67, so which one exactly should i put on box one nonemployee compensation

LeonardS
Level 14
March 29, 2022

Uber will provide you with a 1099-NEC if you received at least $600 in non-rider payments, referrals, on-trip promotions. The amount on the 1099-NEC is in addition to the amount reported on your 1099-K from uber.

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