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
(See the attached screenshot below. Click to
enlarge.)
On the next screen, it will ask if you had
expenses. Say "Yes"
One thing Uber drivers need to be aware of is that the
1099-K (and 1099-MISC) you receive shows the total amount that Uber collected
for your rides; it does not have their fees, commissions, safe rider fees or
phone rental payments taken out. You need to deduct those as part of your
business expenses along with the mileage you drove. If you didn't keep track of
the mileage or the amounts Uber withheld (commissions, etc.) look on the
2016 Tax Information link on the payments page of your Uber driver account.
There is 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)
The Uber fees deducted from your pay will go under "Other
Common Business Expenses" then "Commissions & Fees"
section. (See the attached
screenshot below. Click to enlarge.)
If you purchased additional insurance specifically because you started driving for Uber, you can deduct the amount of additional cost to you under Insurance.
Here are some more expenses, in addition to
your mileage, that may help boost that difference for Uber/Lyft drivers:
·
Snacks and refreshments for passengers
·
Extra USB chargers
·
Power cables
·
Mobile routers for internet connection.
If you open a business bank account or credit
card, the fees and interest are deductible.
The cost of TurboxTax Self-Employed along
with legal fees related to starting or running your business.
Some others include:
·
Car inspection fees, if required
·
Additional insurance (such as liability insurance)
· PayPal fees
·
Dash cam (only if it is legal in your area).
Here's another link with some great info that you may
find helpful:
http://quickbooks.intuit.com/r/driver/tax-help-uber-drivers-file-uber-1099/
Here's some more expenses deductions:
https://ttlc.intuit.com/replies/5559255
