Uber and Lyft drivers are independent contractors who operate as sole proprietors for tax purposes. This tax status means that a driver incurs self-employment tax and pays Social Security and Medicare taxes typically paid by employers. Drivers should keep track of all expenses incurred while driving for Uber and Lyft to reduce their tax burdens. All of the […]
Uber and Lyft supply 1099-MISC forms each year to drivers who earned at least $600 in the previous year. The 1099-K form is supplied to each driver who earned at least $20,000 and completed 200 rides or more in the prior year.
The Internal Revenue Service (IRS) and state revenue agencies typically treat tips as taxable income. Uber and Lyft drivers are responsible for tracking tips to provide accurate accounting of their incomes.