Much like rideshare drivers, delivery drivers should be tracking their mileage in a log and could get a deduction for all business mileage. With the rising popularity of services such as Amazon Flex, DoorDash, Postmates, and UberEATS, delivery drivers are definitely in demand in certain geographic areas. Keep track of your deductible miles. I’ve gotten several…
There’s no better place to get your questions answered than directly from the IRS Sharing Economy Tax Center. The IRS recently put together an extensive webpage to go over many of the issues facing those in the sharing economy. You can view the website here or continue reading below for a snap-shot of what to expect:…
If you are reading this, chances are you own a cell phone. You may even be reading this article on your cell phone. There is no doubt that cell phones have become a part of everyone’s day-to-day lives. Many new entrepreneurs and small business owners may even start out using their personal cell phone for…
My name is Joe Starzyk. I am a CPA and I specialize in tax return preparation, planning, and consulting for individuals and small businesses – particularly those taking part in the sharing economy. This article focuses on rideshare taxes. Though I make every effort to provide accurate information, tax laws are constantly changing. All information…
Tax deductions for delivery drivers, such as those that use Postmates, Doordash, Instacart, Grubhub or others, are primarily based on vehicle operating costs. Most anyone will qualify for contracting with a delivery service company. To some, it is more appealing than having strangers occupy your vehicle, as is the case for Uber or Lyft. Depending…
So you know you need to track your mileage in a log, but do you know exactly which miles are deductible? The answer is not 100% clear-cut. There are certain situations where the miles are certainly deductible, but other situations enter into a gray zone. I believe the best way to determine your deductible miles…
Form 2106 for Employee Business Expenses is used to claim unreimbursed expenses related to your work. The recent Uber lawsuit in California is challenging Uber’s classification of its drivers as independent contractors vs. employees. Should the courts decide that drivers are in fact employees in California, this form could see added usage. PLEASE NOTE: This…
Uber and other rideshare drivers must keep an IRS approved mileage log in order to maximize their tax deduction. You are entitled to take a tax deduction for all mileage driven for business purposes. Don’t be afraid to take this tax deduction. If you’re thinking to yourself that you don’t have a business, well, think…
Companies such as Uber and Lyft have started using the Form 1099-K along with the Form 1099-MISC. These forms report payments made to individuals for the year. Many people are familiar with the Form 1099-MISC that companies use to report payments to independent contractors. But a Form 1099-K could be completely foreign to them. Check…
Please view my video for my personal analysis of a Form 1099 from Uber. You will learn about the information that the IRS receives, the information that you need to use, and other important items. Following is a transcript of the video: Hi everyone, my name is Joe Starzyk. I am the owner and sole…
Rideshare (Uber, Lyft, etc.) and other drivers actually have two options (see my mileage vs. actual expense method article) for deducting auto expenses attributed to driving passengers for hire. These methods include the standard mileage rate method (available starting in 2011), and the actual expense method. Your total deduction and recordkeeping requirements differ depending on…
Fortunately your Form 1099 has a lot of useful information that you need on it. But first off, congrats! Choosing yourself is a lot harder than it seems. Being your own boss has many advantages, and, sure, some disadvantages. The feeling of being in charge of how much money you earn is great. Hopefully you…
Rideshare (Uber, Lyft, etc.) drivers actually have two options for deducting auto expenses attributed to driving passengers for hire. These methods include the standard mileage rate method (available starting in 2011), and the actual expense method, also known as the mileage vs. actual expense methods. Your total deduction and recordkeeping requirements differ depending on which…
There are several tax deductions for Uber drivers (or other rideshare companies such as Lyft) drivers need to be aware of when thinking of their taxes and business expenses. The following is a list of the 5 most commonly missed tax deductions for Uber drivers/other rideshare drivers: Car wash – Taking your car to the wash before…
