![]() You must have proper documentation to prove the expenses to be eligible for these deductions, including receipts and mileage logs. Cellphone expenses (only those that were for your business).Other expenses you may incur that you can deduct include: But be sure you track your mileage driven specifically for your rideshare business. Standard deduction: If you’d rather take a standard deduction versus tracking and proving every dollar spent on your vehicle through the year, you can deduct 67 cents per mile in 2024.You may also include depreciation or lease payments if you lease the vehicle. Actual expenses: You can deduct the actual expenses paid for your car, including gas, maintenance, repairs, and insurance.There are two ways to deduct car expenses: Your largest expenses usually involve your car since it’s how you make money as a rideshare driver. This reduces your taxable income and the amount you owe in taxes. Since you’re responsible for all expenses and aspects of running your business, you may be eligible to deduct some of your expenses. Keep Track of Your ExpensesĪ key factor in filing rideshare driver taxes is keeping track of your expenses. Keeping track of your income yourself is vital to ensure you report it properly. 1099-NEC: This form reports any payments from anything other than driving, such as bonuses, guaranteed payments, or money earned from referrals.Ĭurrently, the tax law only requires companies to issue a 1099-K if you earned more than the $20,000 threshold, but the IRS requires you to report any income earned, regardless of whether you receive a 1099-K.You’ll also receive a summary of the income you received from that amount that you’ll use on Schedule C to report your self-employment income. This includes the commissions the rideshare company earned, so it’s not the total income you must report. ![]() 1099-K: This form details all money collected from rides you provided. ![]() Instead, you’ll receive two types of 1099 forms. Learn How 1099 Forms WorkĪs a rideshare driver, you won’t receive a W-2 from Uber or Lyft because you work as an independent contractor. This is your earnings after any expenses. However, self-employment income only applies to your net earnings or profit. However, when you’re a rideshare driver (independent contractor), you are responsible for the entire amount, 15.3% of your taxable income (12.4% goes to Social Security and 2.9% to Medicare). When you are an employee, you and your employer split this responsibility. It covers your contribution to Medicare and Social Security. Self-employment tax differs from regular income tax. You’ll need Schedule C to report your self-employment income and Schedule SE to determine the self-employment taxes owed. Knowing how to file taxes as a rideshare driver is important because you’ll complete more than the standard 1040. In This Article How to File Taxes as a Rideshare Driver Now, let’s get started and see how to file your taxes as a rideshare driver. ![]() We will be updating this article throughout the 2024 tax season, so make sure to bookmark this and save it as you go through your taxes this year! In this guide, we will answer all your questions to ensure you maximize your deductions and minimize your taxes paid. Rideshare driver taxes might seem scary, but they’re actually pretty simple. One of the things a lot of new rideshare drivers overlook when they’re just getting started is taxes. This does not influence our recommendations or editorial integrity, but it does help us keep the site running. At no extra cost to you, some or all of the products featured below are from partners who may compensate us for your click.
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