Hi all,
- I earned income that didn't qualify for a 1099-Misc (under $600) or a 1099-K (less than $20K in gross trip earnings).
- I did not earn income via cash or check.
-And didn't receive income that qualifies as "uncommon income".
I'm stumped here, can anyone advise which option to choose?
Thanks in advance!
Alex
On the following screen, for "Type of income", should I put "Direct Deposit" or "Cash" (or doesn't matter)?
Well, if the direct deposit came from Lift or Uber, I would classify it as "checks", if it was transferred by a phone app by a rider, I would use "cash", but the end result would be the same. If it were a large amount, cash could raise eyebrows, but in your case, no worries.
Hi Kris. Yes, it's for Uber & Lyft. And I should enter all gross earnings from both rideshare platforms as a single amount and proceed? Or one row for Uber and add another for Lyft?
You are considered self-employed. It is just like a personal trainer. They don't split up the fees they charge each client, and neither should you. Just report what you made, regardless of who paid it. Since it is the same type of work, you can combine them. If you also pet-sit, that would be a second schedule C, but you would still report what all the dog owners paid you, not split it up, get it? Use one row. Splitting the entries could be useful in bookkeeping (like if you wanted a report showing who you made more driving for), but not needed for tax filing.
Receiving funds via Direct Deposit is considered the same as receiving cash.
Tax Tips for Uber, Lyft, Sidecar and other Car Sharing Drivers FAQ
https://turbotax.intuit.com/tax-tools/tax-tips/Self-Employment-Taxes/Tax-Tips-for-Uber--Lyft--Sidecar-and-other-Car-Sharing-Drivers/INF28820.html
How to get the Lyft discount
https://ttlc.intuit.com/questions/4237789-why-isn-t-my-lyft-discount-being-applied-to-my-turbotax-account
You will need to file a schedule C in your personal tax return for self employment income. You will need to use the Self Employed Online version to fill out schedule C.
Here is some reading material……
IRS information on Self Employment….
http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Self-Employed-Individuals-Tax-Center
Pulication 334, Tax Guide for Small Business
http://www.irs.gov/pub/irs-pdf/p334.pdf
Publication 535 Business Expenses
http://www.irs.gov/pub/irs-pdf/p535.pdf
Self Employment tax (Scheduled SE) is generated if a person has $400 or more of net profit from self-employment on Schedule C. You pay 15.3% for SE tax on 92.35% of your Net Profit greater than $400. The 15.3% self employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare. So you get social security credit for it when you retire. The SE tax is in addition to your regular income tax on the net profit.
You can enter Cash Income into Online Deluxe or Premier but if you have any expenses you will have to upgrade to the Self Employed version.
You can include the other income as cash on your return and you will not need the 1099. To do so, follow the steps below.
Go into your account with Turbo Tax
Select Federal Taxes, then
Select Income and Wages, then
Scroll down and select, Self-Employment - Income & Expenses - Start
Say YES to Did you have Self Employment Income (if that screen comes up)
Then Tell Us The Type Of Self Employment Work You Do, here you can put in a description and Continue
The next screen will be Let's Get Income, here you will select 'Additional Income'. This is for cash income.
Then continue as you normally do with your return.
There is also QuickBooks Self Employment bundle you can check out which includes one Turbo Tax Online Self Employed return....
http://quickbooks.intuit.com/self-employed