#1 Uber and Lyft Tax Service
Do Uber and Lyft tax your earnings or do they send you 1099's at the end of the year?
Uber and Lyft drivers, you are now your own boss.
Over 16 Uber and Lyft Tax Deductions Drivers Can Use in 2020
Many people are turning to companies such as Uber or Lyft as a great way to earn extra money. Of course, the driver can also be a full-time gig for motivated drivers. One of the reasons why this work is so attractive is that you do not work for the company. Instead, you are your own boss with your own business. You are subcontracting out your services to the Uber and Lyft company. Therefore, you are considered an independent contractor, no taxes are taken out of your payouts, and you get more money right away.
The bad news, you can be surprised by a big tax bill because you’re not pre-paying your taxes. Let’s explore how to minimize the tax burden that rideshare drivers often face.
Save more money
We save clients on average $5,729 in tax savings per year.
Hello, I’m Marie from Wealth Management Tax Services with some helpful tax pointers for drivers who work for companies like Uber or Lyft.
Pointer one: File taxes as a self-employed person.
Pending laws may change this, but until then, file taxes as if you are self-employed and use Schedule C to report your income and expenses.
Pointer two: Set aside a portion of your income to pay taxes, since they’re not taken out of your paycheck.
Pointer three: Deduct your business expenses. The biggest deduction will likely be the cost of your car and gas. If you use the car only for Uber and Lyft, you can take one hundred percent of the total miles driven or actual expenses incurred as deductions.
Pointer four: You can also deduct other expenses like snacks you offer to passengers, tolls, maps, and more. You can even deduct the cost of your phone bill if you use it for business.
Pointer five: Keep meticulous records, including mileage logs and receipts. The IRS will not allow deductions without documentation to back it up. Be sure to note for each expense the date, time, amount, and business nature.