OVERVIEW
With the rise of the new sharing economy, many drivers are participating in ride sharing services with companies like Uber and Lyft. Here's a short video you can watch to make sure you're getting all of the tax benefits of being an Uber or Lyft driver.
Video transcript:
Hello, I’m Adrienne from TurboTax with some helpful tax tips for drivers who work for companies like Uber or Lyft.
Tip number one: File taxes as a self-employed person.
Pending laws may change this, but until then, file taxes as if you are self-employed and use Schedule C to report your income and expenses.
Tip number two: Set aside a portion of your income to pay taxes, since they’re not taken out of your paycheck.
Tip three: Deduct your business expenses. The biggest deduction will likely be the cost of your car. If you use the car only for ride-sharing, you can take one hundred percent of the total miles driven or actual expenses incurred as deductions.
Tip four: You can also deduct other expenses like snacks you offer to passengers, tolls, maps, and more. You can even deduct the cost of your phone bill if you use it for business.
Tip five: Keep meticulous records, including mileage logs and receipts. The IRS will not allow deductions without documentation to back it up. Be sure to note for each expense the date, time, amount, and business nature.
With TurboTax Live Full Service Premium, have a dedicated expert uncover every tax deduction and file your investment and self-employment taxes for you. Backed by our Full Service Guarantee. You can also file taxes on your own with TurboTax Premium. We’ll search 500 tax deductions & credits to provide comprehensive coverage.
