You need to add another business and make sure you designate who the "business" is owned by, you or your spouse.
See the screenshots below.
When you are a Rideshare, Lyft or Uber driver, you are self
employed.
- Enter
your Name as the business name,
- Enter
your address as the Business Address and,
- Click
on NO when asked if you have an Employer Identification
Number.
You are self-employed and have to set up your
Rideshare, Lyft or Uber income as a business
on Schedule C, Profit or Loss from Business.
As a Rideshare, Lyft, Uber, or other self-employed driver,
here are some of the work-related expenses you may be able to
deduct:
- Cell
phones, data plans, and cell phone accessories (chargers, cradles and mounts)
- Vehicle
expenses or standard mileage
- Car
wash, cleaning, and detailing
- Licenses,
permits, emissions testing
- Customer
refreshments (bottled water, mints, snacks, gum)
- Commissions
paid or deducted from income (Uber and Lyft split fare)
- Miscellaneous
fees (tolls, parking, roadside assistance, city and airport fees, etc.)
- These
out-of-pocket expenses will offset (reduce) your earnings, lowering the amount
of income you pay taxes on.
As
for the car itself, you can deduct fuel, maintenance, repairs, auto insurance,
registration, lease payments, and depreciation. Many drivers opt to do this
through the Standard Mileage Rate (54 cents per mile) because it's much
simpler. However, you can deduct each expense individually with the alternative
Actual Expenses method.
To enter your income and expenses NOT
reported on form 1099-MISC or 1099-K Payment Card and Third Party Network
Transactions:
- Type sch
c in the search bar and click search.
- Click
on Jump to sch c.
- This
will take you to where you can enter additional income from your 1099-K.
- You
may be asked some general questions about your business.
- On
the First, let's confirm your business and address screen,
scroll down to Business description.
- After
you answer them, you’ll be taken to the Your Business screen where you
can enter your 1099-K under Business
Income.
- If
you are entering income from a 1099-K, remember that it reports the gross amount of
the transactions. It doesn't include any adjustments for credits, refunds,
discounts, fees, etc.
- You
would also access the Business Expenses entry screens on the Your
XXX Business screen.
To enter your vehicle expenses,
you
would also access the Business Expenses, Business Vehicle
Expenses entry screens on the Your XXX Business screen. NOTE:
Enter the vehicle expenses using the Actual Method.
- Enter
all the information in the on line interview, including the miles driven.
- On
the You've Got a Standard Mileage Deduction of XXX screen,
click on Yes, I'd like to see if my actual expenses give me a bigger
deduction.
- You
will be prompted to enter what you paid for your car and depreciation
methods available.
- Continue
with the on line interview until you complete the Business Vehicle entry
screens.
Please note the following:
The
IRS Form 1099-K (and/or IRS Form 1099-MISC) does not have their fees,
commissions, safe rider fees or phone rental payments taken out.
If
you didn't keep track of the mileage or the amounts Rideshare, Lyft, Uber,
etc., withheld (commissions etc), look on the 2016 Tax Information link on the
payments page of your driver account. There may be a summary sheet linked at
the bottom and it shows the fees they took out as well as the mileage for the
trips (your mileage may actually be more as you drove around waiting for a
hit.)
Related information:
