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"