[ColonyMark]

I started part time driving for Uber in June 2019. I received a 1099-MISC form, but it only shows around $600. My uber account shows the actual earnings for 2019, around 7K, but there's a note that says "not for tax filing purposes"
I assume that means uber only reported the $600 to the IRS?

Turbotax wants me to upgrade to a more expensive service to ask live questions.
Also, when I try to enter my mileage, Turbotax wants me to upgrade to their self employed service which costs $120. I hate to do that since I only drive part time.
There was a TurboTax special deal for Uber drivers, but I missed the deadline.
Is my only option to pay the more expensive TurboTax service? I guess that might be cheaper than going to a full service tax preparation company.

I don't want any problems with the IRS. Any advice would be much appreciated.

 

[Alltel77]

I started part time driving for Uber in June 2019. I received a 1099-MISC form, but it only shows around $600. My uber account shows the actual earnings for 2019, around 7K, but there's a note that says "not for tax filing purposes"
I assume that means uber only reported the $600 to the IRS?

Turbotax wants me to upgrade to a more expensive service to ask live questions.
Also, when I try to enter my mileage, Turbotax wants me to upgrade to their self employed service which costs $120. I hate to do that since I only drive part time.
There was a TurboTax special deal for Uber drivers, but I missed the deadline.
Is my only option to pay the more expensive TurboTax service? I guess that might be cheaper than going to a full service tax preparation company.

I don't want any problems with the IRS. Any advice would be much appreciated.

I would just find a certified accountant and dump all your paperwork on him/her that's what I'm doing!

 

[ThanksUber]

Since this is your first time doing this it is best to take it to a professional. Doing it yourself and you might miss some deductions.

 

[dgates01]

I did mine through the Turbo Tax for Self Employed link via Uber. I never did get a 1099 mailed to me, as I was expecting I wouldn't. Filed it, owing the Feds about $70, and getting about $55 back from California. I saw all those links to upgrade but just ignored them. I still think you should be able to do it for free. Being that deductions are robust for this job, you will own little, and there is a possibility that you might get a bit back. So there was no reason to put off filing like someone owing thousands might.

 

[Stevens1]

https://www.rollcall.com/2019/05/20/the-tax-man-may-be-coming-for-uber-and-lyft-drivers/

 

[Jenga]

I started part time driving for Uber in June 2019. I received a 1099-MISC form, but it only shows around $600. My uber account shows the actual earnings for 2019, around 7K, but there's a note that says "not for tax filing purposes"
I assume that means uber only reported the $600 to the IRS?

This is incorrect. Uber should not be sending a 1099-MISC at all. There is a special category of 1099 for Uber drivers, called 1099-K which rideshare co's are only required to send if you make over 20K. Why? Because regular 1099's are issued by part time "employers" or those that "hired" independent contractors. And guess what? Uber drivers do not work for Uber! Uber works for drivers - as "agents". This is completely clear in the driver agreement. So, because of this loophole, the IRS (actually Congress) created a new category so that a "Third party network transaction provider" (rideshare co) would be required to report "passthrough payments" to their "customers" (drivers - yes, drivers are actually Uber's customers, not their "employees".). So, what you actually received is simply an "information statement", not a 1099-MISC. And no, they did not report this to the IRS. This is why it says "not for tax filing purposes". ≈ The $600 amount is the threshold for employers to be required to report normal payments to independent contractors on a 1099-MISC (Uber does not qualify for this due to the business relationship of "transaction provider", not "employer".) The 1099-K will only be issued to the IRS if you receive passthrough income from Uber for over $20K. More here: https://www.irs.gov/businesses/understanding-your-form-1099-k

 

[Seamus]

As usual plenty of bad/wrong advice about taxes. I thought you already asked this and I already answered this but maybe I'm wrong.

From Uber specifically, you only get a 1099k from them if you make over 20k. You get a 1099 misc from them if you get more than $600 in promotions, bonuses, etc.etc.. So you can get a 1099k AND a 1099 misc, one or the other, or none, depending on how much and where you made the money.

Simple, go on to your Uber website and get your "Tax Summary", download and print. All your information is there. You sound totally lost in how to file a schedule C. If this is the case you should go to a tax preparer so you don't screw yourself out of money.

 

[WAHN]

This is incorrect. Uber should not be sending a 1099-MISC at all. There is a special category of 1099 for Uber drivers, called 1099-K which rideshare co's are only required to send if you make over 20K. Why? Because regular 1099's are issued by part time "employers" or those that "hired" independent contractors. And guess what? Uber drivers do not work for Uber! Uber works for drivers - as "agents". This is completely clear in the driver agreement. So, because of this loophole, the IRS (actually Congress) created a new category so that a "Third party network transaction provider" (rideshare co) would be required to report "passthrough payments" to their "customers" (drivers - yes, drivers are actually Uber's customers, not their "employees".). So, what you actually received is simply an "information statement", not a 1099-MISC. And no, they did not report this to the IRS. This is why it says "not for tax filing purposes". ≈ The $600 amount is the threshold for employers to be required to report normal payments to independent contractors on a 1099-MISC (Uber does not qualify for this due to the business relationship of "transaction provider", not "employer".) The 1099-K will only be issued to the IRS if you receive passthrough income from Uber for over $20K. More here: https://www.irs.gov/businesses/understanding-your-form-1099-k

Wrong.

You can actually get both from Uber. See the @Seamus post above.

 

[Jenga]

Wrong.

You can actually get both from Uber. See the @Seamus post above.

Ok, but Uber does not file the 1099-MISC with the IRS. That was the main point.

As usual plenty of bad/wrong advice about taxes. I thought you already asked this and I already answered this but maybe I'm wrong.

From Uber specifically, you only get a 1099k from them if you make over 20k. You get a 1099 misc from them if you get more than $600 in promotions, bonuses, etc.etc.. So you can get a 1099k AND a 1099 misc, one or the other, or none, depending on how much and where you made the money.

Simple, go on to your Uber website and get your "Tax Summary", download and print. All your information is there. You sound totally lost in how to file a schedule C. If this is the case you should go to a tax preparer so you don't screw yourself out of money.

You do not get both. And the 1099-MISC is informational only. They do not file it with the IRS.

 

[Stevens1]

 

[goobered]

I started part time driving for Uber in June 2019. I received a 1099-MISC form, but it only shows around $600. My uber account shows the actual earnings for 2019, around 7K, but there's a note that says "not for tax filing purposes"
I assume that means uber only reported the $600 to the IRS?

Turbotax wants me to upgrade to a more expensive service to ask live questions.
Also, when I try to enter my mileage, Turbotax wants me to upgrade to their self employed service which costs $120. I hate to do that since I only drive part time.
There was a TurboTax special deal for Uber drivers, but I missed the deadline.
Is my only option to pay the more expensive TurboTax service? I guess that might be cheaper than going to a full service tax preparation company.

I don't want any problems with the IRS. Any advice would be much appreciated.

Try HR Block. I entered all my information in to my account on there just to compare with Turbo Tax. It looked like it wasn't going to charge me anything extra to file as self-employed.

Or I think you can use Turbo Tax just short of actually filing through them, to find out how to fill out the forms, print them off and mail them in.

It's not complicated. No need to pay someone to prepare your taxes for part-time delivery. In fact I wouldn't trust anyone else to do it correctly.

Personally to be on the safe side I would report all my earnings, even if Uber reported less to the IRS.

I just checked my account on Uber and it's still showing a link to file for free through Turbo Tax.

 

[Seamus]

Ok, but Uber does not file the 1099-MISC with the IRS. That was the main point.


You do not get both. And the 1099-MISC is informational only. They do not file it with the IRS.

Some of us aren't guessing we have been at this for years. You are completely wrong. It is ludicrous to think the 1099 misc doesn't get sent to the IRS. Stop spreading dangerously bad information, you could get someone all screwed up who actually listens to this.

 

[Ubereatsgrubhubcaviar777]

I would just find a certified accountant and dump all your paperwork on him/her that's what I'm doing!

I take all my crap to the local H&R Block office an let them figure it out I'm doing it tomorrow morning

 

[Jenga]

Some of us aren't guessing we have been at this for years. You are completely wrong. It is ludicrous to think the 1099 misc doesn't get sent to the IRS. Stop spreading dangerously bad information, you could get someone all screwed up who actually listens to this.

The one year I did not get a 1099-K, I got a notice stating they did NOT file a return with IRS. That's what I'm basing it on. What I got was a "summary of activity" which showed all the amounts in various categories. There was no 1099-MISC, yet I made well more than $600, which is the legal threshold for them to report. Please explain this if you can. My best information is that they did not PAY me anything, and therefore are not required to file. All they did was manage payments OTHERS made to me through their service. This is why the 1099-K exists, because it is a different category since we are not "employees" or even "payees", we are (according to them and our contract) "independent contractors" paid THROUGH them by our customers, the riders (after a hefty deduction for their "services" meaning we actually pay THEM!). This 1099-K is the same form you would get from a payment processor if you used them to process your CC payments in any business, and the same law applies: they report to the IRS only if more than $20K is passed through their system to you. Read the rule here: https://www.irs.gov/businesses/understanding-your-form-1099-k. If you guys are getting a 1099-MISC, then the only reason is if UBER paid you directly, as in bonuses or cash equivalent payments originating from THEM. I have never received a bonus, since they are not offered in my area, therefore have never received a 1099-MISC. But if you made less than $20K (or less than 200 transactions or both), then they don't report THAT portion to the IRS. And this will always be the largest portion, since bonuses, etc. cannot exceed the total of ride income overall. Remember, the whole reason the 1099-K exists (it really shouldn't since they are only passthrough service providers), is because congress sought to close the gap through which tax cheating could occur in gig service workers whose payment processors (such as Uber) PREVIOUSLY did NOT have to file a return for. This is STILL true when you don't meet the threshold of $20k and 200 unique transactions.

 

[Seamus]

@Jenga

So in all that you basically answered your own question. This information is specific to Uber and Lyft. Other gig apps do it differently.

Uber and Lyft consider themselves "payment processors" for tax purposes and therefore subject to the rules of 1099K. They divide payments to you into 2 different categories:

1. Payments to you as a result of giving passengers a ride. This is rider payments to U/L which they deduct a fees from and give you the balance. If you make more than 20k (Gross) from this category you will receive a 1099K. If you made less than 20K (Gross) in this category you will not receive a 1099k.
2. Payments to you as a result of bonuses, quests, incentives, etc.. These payments are direct to you from Uber or Lyft and are thereby subject to the rules governing 1099misc. If you receive more than $600 in direct payments in this category you will receive a 1099 misc and if you received less than $600 in this category you will not receive a 1099misc.

Therefore you may receive depending on those circumstances:

1. A 1099k AND a 1099misc.
2. A 1099k and no 1099misc.
3. A 1099misc and no 1099k.
4. Neither a 1099k or 1099misc.

If you receive a 1099k or 1099misc you can most certainly rest assured the IRS also receives them. If you do not get a 1099k from U/L then you will use the information provided in your "tax summary". This "tax summary" is not provided to the IRS but you are personally liable for the tax on the payments to you.

I hope you (as well as anyone else unfamiliar) now have a clear understanding of how it works.

 

[Jenga]

Yes, is as clear as it gets. My error was in thinking I received a 1099-MISC, which I did not. It was only an informational report which I wrongly assumed was what the OP received. Not sure why, but my area has NEVER had any form of bonus!

 

[Xris Xros]

@Jenga

So in all that you basically answered your own question. This information is specific to Uber and Lyft. Other gig apps do it differently.

Uber and Lyft consider themselves "payment processors" for tax purposes and therefore subject to the rules of 1099K. They divide payments to you into 2 different categories:

1. Payments to you as a result of giving passengers a ride. This is rider payments to U/L which they deduct a fees from and give you the balance. If you make more than 20k (Gross) from this category you will receive a 1099K. If you made less than 20K (Gross) in this category you will not receive a 1099k.
2. Payments to you as a result of bonuses, quests, incentives, etc.. These payments are direct to you from Uber or Lyft and are thereby subject to the rules governing 1099misc. If you receive more than $600 in direct payments in this category you will receive a 1099 misc and if you received less than $600 in this category you will not receive a 1099misc.

Therefore you may receive depending on those circumstances:

1. A 1099k AND a 1099misc.
2. A 1099k and no 1099misc.
3. A 1099misc and no 1099k.
4. Neither a 1099k or 1099misc.

If you receive a 1099k or 1099misc you can most certainly rest assured the IRS also receives them. If you do not get a 1099k from U/L then you will use the information provided in your "tax summary". This "tax summary" is not provided to the IRS but you are personally liable for the tax on the payments to you.

I hope you (as well as anyone else unfamiliar) now have a clear understanding of how it works.

So I should report both lyft and Uber as "other income" since i made less than $20k on both last year. I am filling online through taxact. OR still use schedule C??

 

[Seamus]

So I should report both lyft and Uber as "other income" since i made less than $20k on both last year. I am filling online through taxact. OR still use schedule C??

You must use schedule C. Don't forget to write off all your expenses and transfer the business income or loss over to 1040.

 

[Xris Xros]

transfer the business income or loss over to 1040.

Not sure how to do that. but i am sure that should be built in to taxact online.

 

[kiltedcameraman]

Not sure how to do that. but i am sure that should be built in to taxact online.

Tax act will do it automatically. Yes, legally you should list it as unreported income.