Uber 1099 Frequently Asked Questions
Filing your taxes can be confusing when you’re an independent contractor. If you drive for Uber, here are your most common 1099 tax form questions, answered.
How Much Can I Make Without Having to Report My Income?
It's a common misconception that you only have to report your 1099 income if you hit a certain threshold. In reality, every bit of your business profit is taxable income; there’s no minimum threshold before the IRS can tax your 1099 income.
The tricky part about this is that companies that use contract workers aren't required to send out a 1099-NEC unless they have paid that person $600 or more in a given tax year. The 1099-K limit is $20,000. This means that even if you don't receive a 1099 for your work, you'll need to report the income.
However, if you’ve made less than $400 during the tax year, then you won’t have to pay self-employment tax on your income.
Do I Need to Send My 1099s in With My Tax Return?
No, unless they show federal or state withholding.
If you’ve had any tax already withheld from your income, then you’ll need to submit your 1099s along with your tax return.
What Is Self-Employment Tax and How Do I Calculate It?
When you’re self-employed, you’re required to pay taxes on your income that are the equivalent of what an employer typically pays in Social Security and Medicare taxes.
Self employment taxes are calculated on your net business profit (i.e. your business income minus business deductions). Usually an employer will pay these taxes on your behalf, but as a business owner, you are now responsible for paying them.
If you’re using a filing software, your self-employment tax will be automatically calculated for you when you report your business income. If you’re filing forms by hand, you can calculate your self-employment tax using Schedule SE. You can read more about Schedule SE here.
How Do I Report My Uber Income?
Uber reports your income to you on your 1099-K, and potentially a 1099-NEC as well (if you received $600 or more in incentives and referrals). When you file your taxes, you’ll need to include those income totals on a Schedule C. The Schedule C is an additional form that you send in with your tax return that reports your business income, as well as your business deductions.
If you’re using a tax filing software — like TurboTax — to file your taxes, you’ll report that you have income that was reported on a 1099-K and/or a 1099-NEC. If you received income in referrals and incentives but not enough to receive a 1099-NEC, you can check your Uber Tax Summary for this income, and then report it as "Other income" on your Schedule C.
If you’re filling out your tax return by hand, you’ll include your 1099 income totals in Part I of your Schedule C.
Why Didn’t I Get a W-2/Why Didn’t Uber Withhold Taxes for Me?
If you’re an Uber driver, you’re technically an independent contractor with Uber, not an employee. This means that Uber isn’t obligated to withhold your taxes as it does for an employee. Because you’re the owner of your own business, you’re responsible for calculating how much you owe in taxes from your Uber income.
Because W-2s are used to report income when you’re an employee, you won’t receive this type of form. Instead you’ll receive a 1099-K, and potentially a 1099-NEC as well.
What Is the Difference Between a 1099-K vs. 1099-NEC?
The 1099-K is used to report payment transactions that were facilitated by a third party. 1099-Ks are issued to anyone who:
Generated income from credit, debit, or pre-paid card transactions (in your case, that’s how passengers paid), OR
Had more than $20,000 in sales and more than 200 individual transactions through a third-party processor (in your case, each individual ride you gave). Because this threshold is so high, Uber will send a 1099-K even if you didn’t reach that threshold.
The 1099-NEC (short for “Miscellaneous) is used to report direct payment of $600 or more from a company for your services. In your case, you’ll receive a 1099-NEC from Uber if you did something like:
Referred other drivers to drive for Uber
Received a bonus for driving a certain number of trips
Why Did I Get Multiple 1099-Ks?
Uber will send you a different 1099-K for each state in which you've completed trips.
So if you have completed trips in both New York and New Jersey, you'll get a 1099-K for each set of fares.
The 1099-K Total Does Not Match the Amounts Deposited in My Bank Account. Why?
Don’t worry — this is normal. The number on Line 1a of your 1099-K includes Uber’s commission and fees (this is your gross income), as well as the fares that you actually received in your bank account.
On your Uber Tax Summary, you’ll see how that number is broken down into both fares and fees. When you file your taxes, you’ll need to report Uber’s Line 1a total as your income, and then deduct the commissions and fees outlined on your Tax Summary as business expenses. You can deduct these fees in the “Commissions and fees” section of any tax filing software, or on Line 10 of the Schedule C if you’re filing by hand.
How Do Uber Fees Work With Taxes?
The Booking Fee that you see on your Tax Summary will be included in your “gross income” from Uber (found on Line 1a on your 1099-K), but is deductible as a business expense. Don’t worry, you won’t have to pay taxes on money that you never received.
When you file your taxes, you’ll need to report Uber’s total as your income, and then deduct commissions and fees as a business expense. You can do this in the “Commissions and fees” section of any tax filing software, or on Line 10 of the Schedule C if you’re filing by hand.
What Is the Tax Summary Used For?
The Uber Tax Summary provides a closer look at the “gross income” total that is reported on your 1099-K.
The 1099-K reports your total income, including the commissions and fees that Uber took out of your pay. Your Uber Tax Summary shows how that gross total was calculated, and how much of it is from commissions and fees. The commissions and fees total that you see on your Tax Summary can be deducted as a business expense.
