No, the IRS does not consider this ok. Your Uber income should be entered on Line 12 of your 1040 (Business income or (loss) and should be reported on a Schedule C.
When you drive for Uber, you are regarded as an independent contractor, not an employee. This means that at the end of the year, you will receive a 1099 form rather than the typical W-2 you may be used to getting.
According to the IRS, as an independent contractor, you are considered as a self-employed individual operating your own business. The IRS refers to this as conducting business as a sole proprietorship. Additionally, all driving services income you earn, whether through Uber or not, also fall under this same business.
In TurboTax, we don’t create a separate entry for your 1099-K info. That's because your 1099-K income should already be included in other income such as a 1099-MISC
However, if you don't have a 1099-MISC, report your 1099-K by following these steps before you enter any expenses:
· Click on Federal Taxes on the top row of TurboTax Deluxe Online.
· Click Wages & Income
· Under All Income, click Show all income
· Scroll to Self-Employment, click Start
· Click Yes to Did you have any self-employment income or expenses?
· Enter any income from sales or services that weren't reported on Forms 1099-MISC
On the next screen, it will ask if you had expenses. Say "Yes"