In just about every circle of friends in a major city, someone you know drives for Uber, LYFT or a 3rd party company for Amazon.
The income earned from these ride sharing services is reported on form 1099-MISC. These companies report the financial information to the IRS without withholding taxes and require the individual driver responsible for reporting their expenses. We have identified a few expenses to consider when creating your tax worksheet for your tax preparer. These deductions are both valid and allowable expenses for contract drivers. Review the list below and begin gathering your documents:
1. AAA Member – Annual membership
2. Cell Phone Charger
3. Cell Phone Monthly Bill – % is allowed as a deduction
4. Mileage – You must track the total miles driven for the year to claim deduction for the UBER/LFYT Miles
5. License, Insurance and Registration
6. Meals: purchased and consumed while your working or during your rest period
10. Internet Fees
11. Accounting and Tax services
These expenses are “real” and you must be ACCOUNTED FOR in order to be claimed on your taxes:
Let’s schedule a initial session to discuss your accounting and tax options and make sure that you are claiming all your expense deductions on your 2017 taxes.