Which option should I select for rideshare driving self-employed income? (Please see details).

[A-Two-O]

Hi all, 

- I earned income that didn't qualify for a 1099-Misc (under $600) or a 1099-K (less than $20K in gross trip earnings). 

- I did not earn income via cash or check. 

-And didn't receive income that qualifies as "uncommon income".

I'm stumped here, can anyone advise which option to choose? 

Thanks in advance!

Alex

[KrisD]

How did you receive the income?

[A-Two-O]

Direct deposit

[KrisD]

That is considered the same as cash

[VolvoGirl]

That is considered Cash.

[A-Two-O]

Oh! Got it. Thanks so much KrisD & VolvoGirl

[KrisD]

Thank you for using TurboTax

[A-Two-O]

On the following screen, for "Type of income", should I put "Direct Deposit" or "Cash" (or doesn't matter)?

[KrisD]

Well, if the direct deposit came from Lift or Uber, I would classify it as "checks", if it was transferred by a phone app by a rider, I would use "cash", but the end result would be the same. If it were a large amount, cash could raise eyebrows, but in your case, no worries.

[A-Two-O]

Hi Kris. Yes, it's for Uber & Lyft. And I should enter all gross earnings from both rideshare platforms as a single amount and proceed? Or one row for Uber and add another for Lyft?

[KrisD]

You are considered self-employed. It is just like a personal trainer. They don't split up the fees they charge each client, and neither should you. Just report what you made, regardless of who paid it. Since it is the same type of work, you can combine them. If you also pet-sit, that would be a second schedule C, but you would still report what all the dog owners paid you, not split it up, get it? Use one row. Splitting the entries could be useful in bookkeeping (like if you wanted a report showing who you made more driving for), but not needed for tax filing.

[A-Two-O]

Understood, thanks.

[VolvoGirl]

I posted a lot more info for you down below.

[A-Two-O]

Wow, many thanks...browsing now...

[KrisD · Accepted solution]

Receiving funds via Direct Deposit is considered the same as receiving cash.