Form 1099-NEC (1099-MISC in prior years) provides an accounting for any other income you’re paid, including referrals and non-driving-related bonuses.įor tax years before 2023 the IRS rules did not require Uber to issue a 1099-K if you processed 200 or fewer transactions or $20,000 or less in third-party payments.However, you can usually deduct the additional fees as business expenses, so you pay taxes only on what you actually earned. As a result, the amount shown on Box 1a of the form is typically greater than the amount you actually received. This includes all the money you collected from passengers, including the Uber commission and other fees. Form 1099-K reports the total amount your passengers paid for the rides you provided through the third-party payment processor.Some Uber driver-partners receive two Uber 1099s: It’s also why the company reports your earnings on 1099 forms, rather than on a W-2. That’s why Uber doesn't withhold taxes from your payments. It also might be the first time you’ve had to report self-employment income on your tax returns. Follow these tips to report your Uber driver income accurately and minimize your taxes.Īs far as Uber is concerned, you’re an independent contractor who provides a service, not an employee. If you’re one of the thousands of people who started driving with Uber this year, it might be the first time you’ve been your own boss, setting your own hours and making countless decisions to improve the performance of your business. Since your Uber ridesharing is a business, you will typically use Schedule C, Profit or Loss from Business to deduct your business-related expenses and report your profits for the tax year.Even if you don’t receive a 1099, you're still required to report all of your Uber income to the IRS.If you were paid more than $600 in non-driving income such as referral bonuses, you should receive Form 1099-NEC to document these payments.This threshold is reduced to $600 without regard to the number of transactions beginning in 2023.
For 2022, if you receive more than $20,000 and 200 transactions for ride payments during the tax year, Uber is required to send Form 1099-K to you and the IRS.
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