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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 2021

 

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.

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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.

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Save More Money

We save clients on average $5,729 in tax savings per year.

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Here are some helpful tax pointers for drivers who work for companies like Uber or Lyft

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  • 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.
     

  • Set aside a portion of your income to pay taxes, since they’re not taken out of your paycheck.
     

  • 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.
     

  • 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.
     

  • 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.

Remember, we work for you, not for the IRS. Many of our clients save many times the fee in reduced tax liability through careful planning and legitimate tax strategies.

Let’s Work Together

Get in touch so we can start working together.

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Choosing Wealth Management for your business or individual financial needs is an important decision. You need a firm with a knowledgeable staff, wide-ranging experience, a commitment to integrity, and a full complement of services.

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FREE CONSULTATION

Request a free consultation through our website. Just fill out our form with your information and we'll contact you with ways to help secure your finances, save money on taxes, help with your business and more.

This website is owned by a private company that offers business advice, information, and other services related to the formation, financing, operation, and management of businesses. All users should perform their own due diligence and research. This website is not a lender and does not broker loans, make loans, or make any credit decisions. We have no affiliation with any government agency. Nothing on this website is an offer or a solicitation for a loan. This website is not an agent, representative, or broker of any lender and does not endorse or charge you for any service or product. None of the information on this site constitutes legal advice.

You also understand that we are not affiliated with the Small Business Administration (SBA). If you need to visit the SBA directly please click here: sba.gov

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