While having to pay self-employment taxes may not be ideal, being an independent contractor does come with the perk of tax deductions. After all, you shouldn't be taxed on money you didn't actually earn. If you own your vehicle, you can take a depreciation deduction. The tax summary shows the total amount your passengers paid for Uber booking fees as well as other fees, such as tolls, other booking fees, and split fare fees. Uber Tax Deductions. These tax deductions are often so generous that many Uber and Lyft drivers pay very little tax. When reporting my income as additional income, do I use Gross Trip income or Net Trip income. If you're self-employed and taking a taxi for business, your cab expenses are often deductible. Both breakdown what the expenses section covers of what they are reporting, namely the booking fee, airport fees, instant pay or express pay charges, and service fees that Uber and Lyft take out of your earnings upfront. You can view how much Uber or Lyft has taken in fees in your online account. Lowering your year-end taxes can make a big difference. For this tax season, I did not meet any of the qualifications for a 1099 from Uber and instead got a Tax Summary. Tax deductions reduce your taxable income, so if you earn $30,000 and are eligible for $14,000 in deductions… If you have a dedicated cell phone for the business, you can deduct … Reporting - Depreciation; Since this is an on-call type service, your cell phone is an important part of your business. Uber and Lyft fees … You can also deduct cab, Uber and similar rides for charitable work or for medical care. The cut that Uber … This is what you can expect to receive from Lyft for the 2020 tax … It really is not that clear as to which one to use. Call us today: (888) 272 – 4915 (10am - 7pm CT) ... Service Fees. [Where to deduct: Schedule C, Line 10 “Commissions and Fees”] (3) Cell Phone Expenses: As a rideshare driver, you need a reliable phone with sufficient storage and cell phone data. Your phone purchase, monthly service bill, power adapter, and dashboard holder are all tax deductible. Start with this list. Both Uber and Lyft will report your income on Form 1099-K if you earned at least $20,000 over at … You can deduct the portion related to the business. Yes they are! To get you off to a good start with your business tax deductions, Uber provides you with a tax summary that breaks down the totals of both your 1099-K and 1099-NEC. Gross is obviously everything earned, not including fees… All the deductions listed in Part 1 and 2 are great, but, thanks to the Tax Cuts and Jobs Act (“TCJA”), you can qualify for a pass-through tax deduction starting in 2018. 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