Dual rideshare companies

[mingansr]

Several questions, and i hope a Turbo Tax Professional adds to the feedback!

Important background: I did my brother's taxes and he only drove for Uber. Not a problem. What i did notice is that there was no asking for information on additional 1099k's, and no separation possible for different states.

I drive for both Lyft and Uber. i see problems when i fill out my taxes.

1. First of all what is the Business Code for Sch C when it comes to Rideshare drivers? Or am i considered TNC or whatever because my income comes from a third party payor?The 1099k states merchant code as 4121 on both companies' forms. is that the business code? or is that just 3rd party code?

2. I signed up for Uber in Arizona and for Lyft in Wisconsin. Each company lists the state at the bottom of the 1099k where I started for them. They do not issue 1099s for each state that I drive in. I drove in both states for both companies. Do the states get copies of the 1099? Because if they do, they will assume that all the income will be gotten within their state for tax purposes. Geez, I hope this is not the case. It's going to be hard enough dividing income and mileage deductions for each state, for both companies. I must know if states get a copy of that 1099k!

3. When a person files Sch C, TTax asks for 1099 info and asks if there are additional 1099-Misc. But Turbo Tax states that there is no form in program for 1099k because the only figure necessary is the Gross Third Party $ amount. So, what do I have to do? Add the totals of each together? Will the IRS be confused by this? I don't need and audit because TTax decided it's not necessary to ask for an additional 1099k and report the separate amounts on my tax return.

4. How am I to split income and mileage deductions on my state income tax forms for the two states? As I said above, IF the states get a copy of the form, they will surely assume that they get all the right to taxation. I must get this answer from Turbo Tax specialist for sure.

Ridesharing is a different deal than many other Sch C businesses. I think Turbo Tax should have a special section for us, so questions like mine don't come up.

[TaxGuyBill · Accepted solution]

1)       Uber and Lyft are taxi services.  Use code 485300.

2)      Most States don’t receive 1099s.  At any rate, the States realize that the income may not necessarily be from that State, so you don’t need to worry about it.

3)      Yes, just add them together and enter the gross amount.  No, the IRS or States will not get confused by it.  HOWEVER, see the second part of the next point.

4)      When you tell TurboTax that you earned income in more than one State (it asks that really close to the beginning of TurboTax), it will eventually ask you to allocate the income between States.  This is common, and it shouldn’t be a problem with the States.

4b)     However, that means you would need to figure out what the profit (after expenses) is from each State.  It MIGHT be easier to enter it as two separate businesses, one for each State.  Then the program would calculate each profit separately, and it would be easy to know what to allocate to each State.  Entering it as two businesses is a bit more work for you, but shouldn't be a problem with the IRS or States.

[SweetieJean]

https://ttlc.intuit.com/questions/3576315-i-contracted-with-lyft-taxi-and-uber-at-the-same-time-in-2...

[VolvoGirl]

@SweetieJean  good one,  how in the world do you find them?  Search?  You must know all the good search words. Do you search in here or use google?

[SweetieJean]

I did a general Google search.