How to File Your Taxes for Uber, Lyft and Other Popular Gig Apps

Posted On Feb 10, 2020 By admin With Comments Off

Tax Day is closing in, and the burden for gig craftsmen is a little heavier because you’re considered independent contractors — not works — of the favourite app-based fellowships you work for.

By Jan. 31, you should have received the necessary tax information, on paper, digitally or both, to start on your self-employed tax return.( If you haven’t received anything more, contact the companies ).

Depending on whom you work for, you may not receive any physical reports at all.

Luke Richardson, a certified public accountant and levy teacher at the University of South Florida says that it’s possible — “even probable” — for gig works to erroneously think they don’t have to file if they don’t receive any imposition papers.

Don’t be moron: You’re still responsible for reporting your gig work income.

“You must file a tax return if you have net earnings from self-employment of $400 or more from gig labor, even if it’s a side job, part-time or temporary, ” according to the IRS’s brand-new gig economy tax center.

Here’s a rundown of the tax forms you’ll need to use as a gig worker- plus a look at the tax policies of five of the most popular gig app companionships: DoorDash, Grubhub, Postmates, Lyft and Uber.

Common Tax Forms for Gig Worker

In the eyes of the IRS, you’re a self-employed worker. That means it’s up to you to compile the relevant tax forms and accurately report your income.

Common Income Forms Sent to You

Companies that paid you more than $ 600 in a calendar year should physically mail you a 1099, as required by law. If “youre working” across several apps, it’s possible you will receive a 1099 from each company. And if you work for Uber or Lyft, you may receive two kinds of 1099.

“This does not mean that payments under $600 are not taxable, ” Richardson said.

The 1099 -MISC, short for miscellaneous income, is a fairly straightforward document that includes your basic identifying information plus 19 caskets for various types of income.

pictured is the highlighted area on your 1099-MISC form where your freelance wages will be located.

As a rideshare or delivery driver, the box you need is No. 7, “nonemployee compensation.” For most gig apps, that container will include your gross earnings for the past calendar year. The other income caskets will likely be empty.

There are exclusions, mainly for Uber and Lyft drivers. Both corporations use the 1099 -MISC form, but the amount they register in box No. 7 “isnt your” total income. Uber and Lyft gave earnings simply from bonuses, promotions, referrals and any other non-driver works in this box. The bulk of your income is reported on a separate form.

The 1099 -K form is favored by Uber and Lyft. However, you will receive this form only if you accomplished more than 200 deals( speak: trips) and earned more than $ 20,000 during the course of its previous calendar year.

Pictured is the highlighted area on the 1099-K form where your freelance wages will be located.

If you receive the 1099 -K, the primary container you’re looking for is No. 1a, “gross amount of fee poster/ third-party network transactions.” That’s jargon for “net income from Uber or Lyft.” Boxes No. 5a through 5l are also useful. They will break down your net income month-by-month.

Let’s say you’re an Uber or Lyft driver who earned $19,000 last year. You probably be eligible for the 1099 -MISC , not the 1099 -K. Your MISC may indicate simply $750 but your bank account says you made $19,000 from driving. What do you do? Report the full amount. Both business gather an unofficial taxation summing-ups( more on them last-minute ). Refer to those lists- not just the small figure on the 1099 -MISC- to file your return.

Pro Tip

Most Uber and Lyft drivers don’t congregate the 1099 -K threshold and won’t receive this form. Again, even if they don’t send you the assemble, there continue to responsible for reporting your earnings.

Tax Return Forms You Send to the IRS

After you’ve tracked down all your 1099 s and tallied up your net income, your next step is to get that numeral as low-spirited as is practicable by subtracting any and all pertinent business expenses and deductions.

Review our freelance and side gyp imposition usher for more details on what rebates you may qualify for as a self-employed worker- and what the hell is do if you need to file quarterly.

As a gig worker, may need to file the following tax forms with the IRS 😛 TAGEND

Form 1040: This is now the main use used by all U.S. taxpayers to file an annual income tax return.( Assembles 1040 S and 1040 EZ are no longer available .) Schedule C: is a sub-form of the 1040 be applicable to tally up your benefit and loss as an independent contractor. Line No. 1 is where you report gross income from all 1099 s or from the income summing-up provided in your gig app. The precede cartons are examples of business expenses you may use to lower your taxable income. Line No. 31 is your net profits, a number you’ll need for the Schedule SE. Schedule SE: This is another 1040 sub-form for self-employed( gig) works. Use it to calculate your 15.3% self-employment tax obligation. Schedule 2: is an “additional tax form, ” i.e. where you provision the amount you owe in self-employment taxes from the SE form above. Put that figure on line No. 4 and the splendid total on indication No. 10. Form 1040 -ES: Use this form, instead of the standard 1040 if you need to file quarterly duty.

You must file a tax return if you have net earnings from self-employment of $400 or more from gig occupation, even if it’s a side job, part-time or temporary. Taxation Plans and The resources available to 5 Popular Apps

What kinds you receive and what imposition work you choose to file with depends on the company you’re working for. Each companionship has slightly different tax policies and may offer deductions for different tax-filing software assistances. Here’s how they stack up.

Pro Tip

Before you shell out money to file, check to see if your gig app collaborators with a levy software corporation. Review the IRS’s new resources for gig workers, and don’t forget about IRS Free File.

DoorDash

DoorDash marriages with Payable.com to keep track of your tax information electronically and should send you an invite via email to set up your Payable account before the end of January.

If you don’t set up a Payable account, you can’t access your tax information online. By default, DoorDash will forward your tax form to the address associated with your Dasher account, unless you specify otherwise.

Review DoorDash’s tax FAQ or the company email for more information about Payable. If you do not receive your 1099, contact DoorDash customer support.

Primary tax form: 1099 -MISC.

Who: Dashers who earned more than $ 600 the previous calendar year.

How: Electronic and paper form.

Grubhub

If you’re a Grubhub driver, you can access your 1099 -MISC online, as long as you’ve converged the income threshold of $600. The firm doesn’t compile an annual duty epitome for you.

Instead, your last-place eight monthly summaries are listed on the driver’s app. If you haven’t saved copies of them throughout the year, you may miss out on company-provided tax information from the early months of the last year.

According to the Grubhub’s tax FAQs, it forwards your 1099 -MISC on Jan. 31, intend you likely won’t receive it until mid February. If you can’t access your 1099 online, or if it doesn’t arrive by Feb. 15, Grubhub recommends contacting aid at 1099 @grubhub. com or at 888 -8 31 -5 729.

Primary tax form: 1099 -MISC.

Who: Grubhub drivers who deserved more than $ 600 the previous calendar year.

How: Electronic and paper form.

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Lyft

According to Lyft’s tax site for motorists, the company spouses with TurboTax to provide free self-employed tax-filing assistances. Live help from TurboTax’s CPAs is dismissed 50%.

Lyft is one of the two main gig apps that uses the 1099 -K form, which necessitates the majority of your earnings from fares will be reported on that formation- not the 1099 -MISC. It’s more likely that you will receive a 1099 -MISC, and the income on that form will be much lower than your total gross earnings. You still need to report the remainder of your income not included on the MISC.

To access your excise substantiates online, log in to your driver dashboard and sounds the “Tax Information” tab. There, you’ll be able to view your 1099 -MISC, 1099 -K and an unofficial tax summary document compiled by Lyft. The duty summing-up exposes your net earnings and is especially helpful if you don’t satisfy the thresholds for either 1099 form.

Primary tax forms: 1099 -MISC and 1099 -K.

Who: Lyft drivers who made more than $ 600 from bonuses and referrals( 1099 -MISC ); all the persons who ended more than 200 menus and made more than $ 20,000( 1099 -K ). Everyone else should report net income from the app’s tariff summary.

How: Electronic and paper form.

Postmates

Postmates collaborators with Stride to help manage your taxes through Stride’s tax app. You won’t be able to file through Stride, but the app does help road mileage and expenses.

If you’ve encounter the $600 annual income threshold, Postmates should send you a 1099 -MISC either online, electronically or both. The firm doesn’t compile an annual tax summary for you, instead it is recommended that you refer back to your emailed weekly charge reports.

If you’re having issues retrieving your 1099 or haven’t received it on time, report your excise concern to Postmates.

Primary tax form: 1099 -MISC.

Who: Postmates who made more than $ 600 the previous calendar year.

How: Electronic and physical form.

Uber

Like Lyft, Uber marriages with TurboTax to provide free self-employed tax-filing business- plus a 50% rebate for live conversations with TurboTax’s CPAs.

Uber- also like Lyft- prefers the 1099 -K form. As an Uber rideshare or delivery driver, you’re more likely to meet the $600 threshold for the 1099 -MISC form. Remember, the gross earnings reported on the MISC are only for things like advertisements and referrals. The rest of your gross income is reported on the 1099 -K, if you are eligible, or in Uber’s online imposition summing-up document.

You can examine your excise summing-up on or after Jan. 31, via the tax information invoice of your partner dashboard. You should have access to Uber’s tax summary even if you haven’t met the income thresholds for either 1099 forms.

Primary tax forms: 1099 -MISC and 1099 -K.

Who: Uber moves who deserved more than $ 600 from bonuses and referrals( 1099 -MISC ); all the persons who ended more than 200 prices and gave more than $ 20,000( 1099 -K ). Everyone else should report net income from the app’s charge summary.

How: Electronic and paper form.

Adam Hardy is a staff writer at The Penny Hoarder. He deals the gig economy, entrepreneurship and peculiar ways to make money. Read his latest articles now, or say hi on Twitter @hardyjournalism.

This was originally published on The Penny Hoarder, which facilitates millions of readers worldwide earn and save money by sharing peculiar job opportunities, personal fibs, freebies and more. The Inc. 5000 graded The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.