Uber ridesharing, Uber Eats, and Postmates all operate as part of Uber. If you worked for any of these services, you’ll get a tax form from Uber. Here’s what you need to know about filing your taxes, how to find more deductions, and how to make more money.
Is Uber self-employment or employee work?
Most Uber drivers sign an independent contractor agreement. Generally, Uber drivers get 1099s not a W-2.
Some states have gone back and forth on whether Uber and Lyft drivers should really be classified as employees. It’s something to keep an eye on for your tax planning, but you’ll probably remain an independent contractor unless you’re looking to challenge your status.
What tax forms do you get from Uber?
Uber sends two tax forms. This sets Uber taxes apart from most other gigs that only issue one tax form.
You receive a 1099-K for your ride earnings and tips. These are payments that Uber considers to be from the passenger to you.
You get a 1099-NEC for payments from the platform, like referral bonuses and special incentives. These are payments that Uber considers to be from Uber to you.
Uber uses two tax forms as part of its strategy to prove that drivers are independent contractors not employees. Uber says it’s just a middleman and payment platform, and it’s the customers who are hiring and paying you.
That’s why customer payments go on 1099-K, which is for processing payments between two people, instead of 1099-NEC, which is for payments to contractors of a company.
How to Find Your Uber Tax Documents
There are two places you can find your Uber 1099 forms.
In a web browser, you can go to drivers.uber.com. Look for the Tax Information tab. Your 1099 should be there by January 31st.
You can also find a copy of your 1099 in your Uber app by going to Account -> Tax Info -> Tax Forms. Be sure to download and save a copy of your 1099 for your records. You may also elect to receive a physical copy of your 1099 by mail.
There’s also an Uber tax summary available in your driver account. While this isn’t your official tax form, you can use the info if you want to file taxes without waiting for your 1099.
Uber Proof of Income
When you’re an independent contractor for Uber or other platforms, you usually have to provide your tax returns as proof of your income. For example, a mortgage will usually go by your last two years of tax returns.
That makes it even more important to report your income and file your taxes properly.
In some situations, you might be able to show your Uber 1099 or account earnings history.
Is Uber Eats considered rideshare?
There isn’t really an official meaning of rideshare for taxes. Since Uber Eats and Uber for passengers get paid together, you can generally safely combine Uber Eats taxes and Uber driver taxes on your tax return.
What counts as income when you’re working for Uber?
Your income includes all the money you receive while working for Uber. This includes both payments through the app and your cash tips.
If you don’t make enough for Uber to issue you a 1099, you generally still need to include that income when you file taxes. The main exception is if you don’t have to file taxes because you had less than $400 total self-employment income.
Tips are taxable self-employment income the same as your fares.
Waiters and taxi drivers have previously tried to have tips count as non-taxable gifts and failed. Trying to say that tips are gifts could result in heavy fines or tax evasion charges for taking a frivolous or fraudulent position.
Cleaning Fees and Other Reimbursements
Cleaning fees, toll reimbursements, and similar payments are also part of your business income. They will be included on your 1099, and you should not subtract them when you enter your income on your tax return.
Don’t worry, you won’t pay taxes on cleaning fees or reimbursements that correspond to business expenses you had to pay.
You can separately deduct cleaning costs, tolls, and other expenses. When you calculate your net income, the income and deductions will cancel each other out.
The only way you would owe taxes is if you spent less than Uber reimbursed you. In that case, you made a profit and would have to pay taxes on the extra amount.
If it cost you more to clean your car than what Uber gave you, you can deduct your full costs and the extra deduction will offset some of your other income.
Can you deduct mileage?
You can generally take a deduction for all mileage while you are active on the Uber platform or other food delivery services. This includes when you have a fare in your car, driving to pick up a fare, and driving around trying to find a fare.
The one mistake that many drivers make is claiming commuting miles.