In just about every circle of friends in a major city, someone you know drives for Uber, LYFT or both companies as source of income. We can now all agree that UBER and LYFT drivers are here to stay.
The downside to driving for UBER or LYFT is the reporting of income as a 1099 subcontractors. Both of these companies report the financial information to the IRS without taxes and make the individual drivers responsible for tracking of their expenses. Below are a few expenses to consider when creating your tax return file for your tax preparer. These deductions are both valid and allowable expenses for contract drivers for UBER and/or LYFT. 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 2016 taxes.