Uber/Lyft drivers are popping up everywhere! It’s become the new way to make money and the best part…It’s on YOUR time! These ride-sharing type employment opportunities have become a bit of a trend. All the hype is the earning potential and flexible hours. What is NOT being talked about is “How will this affect my taxes? “
Consider this : You are NOT employed by Uber/Lyft or any of these companies. They do not give you a pay check, nor pay into your taxes. What you are an independent contractor or Self-Employed. This means you are responsible for your own taxes and maintain your own expenses. We don’t want to scare you and make you think that you must go file as a business or obtain a business license. You will file taxes as an individual like you normally do, you will just receive a 1099 instead of a normal W-2.
A 1099 is a year-end tax document that reports income you made as a contractor. It is payment for Services rendered. The positive about this, is that you may deduct your expenses you paid to earn this money on a profit and loss known as a schedule C.
Sign up for our newsletter and be the first to find out when exciting IRS news happens. Yes, exciting. We're really into taxes.