2017 How Does Uber Work With Taxes?😕
Important Note: The IRS want be processing/accepting returns until Jan 23, 2017. Even though many taxpayers and online software companies are accepting returns, the IRS will not start processing returns until Jan 23rd.
In addition, under the new law if you claim the Earned Income Tax Credit and Additional Child Tax Credit, the IRS will be holding your return until Feb 15. This mean that the earliest you will see any money due to you will be by the week of Feb. 27. Don’t believe us? You can read this directly on the IRS website yourself. Spread the word to your other fellow drivers.
Avoid Tax Scams
Therefore be weary of anyone claiming to be able to get your refund check back sooner. Some companies may allow you to take out a tax loan and they deduct their money plus interest out of your refund. But you shouldn’t do this unless you need the money really bad. Because the interest on most of those loans are crazy expensive.
Also be weary of anyone who are charging you an insane amount of money just to prepare your taxes. Average cost is between $100-$300 depending on where you live.
Don’t let anyone tell you that because you are an Uber driver your tax situation is unique and therefore they must charge you more. Not true in most cases. Run.
Go to people or companies who been in business for a while and has good reviews. We recommend you avoid those pop-up tax companies that all of a sudden popped up in your city out of thin air. Not all are bad, but just make sure you do your research before going to them.
Make sure you get a copy of your return so you can see exactly how much you are getting back. Look over your documents to make sure you don’t see any shadiness going on. Check the status of your own refund at irs.gov/refunds after Jan 23rd or after whatever date it has been submitted.
Trying to figure out how Uber taxes work since drivers are independent business owners vs employees can be a bit tricky. Especially, if this is your first time working independently. Therefore we are happy to break this down for you.
Driver Tax Form :: So lets say if you earned over $600 on the Uber system in the past calendar year, Uber will issue you a 1099 form based on the tax information you entered in http://vault.uber.com.
Remember, it is your responsibility to file your taxes at the end of the year. You should seek the advice of a tax professional if you questions on how to report this income.
Uber Driver Deductible Expenses :: Some self-employment deductions that may be available to you are:
Uber phone rental fee
Deduct your monthly health insurance premium
If you brought any refreshments for your riders like candy, bottled water, etc
Any Uber specific clothing – like T-Shirt
Uber signs or printing of referral/business cards
Commercial license fees
License and registration fees
Cleaning or detailing
Your tax consultant will be able to help you with determining which of these expenses you are able to deduct. Remember to keep all receipts. Your tax preparer might request copies.
Please let Uber know if you have any questions or concerns at help.uber.com.
Content Update: 1/15/2017
Uber Work With Taxes. Help!