Driving Uber until tax time just got fun and playful

- Advertisement -

Tax Day 2023 is coming up, and the burden is a bit heavier for gig workers because you’re considered an independent contractor — not an employee — of the popular app-based companies you work for.

Last year saw a return to a more familiar April deadline, after years of filing extensions due to the pandemic. Similarly, this year’s deadline to file your federal taxes is April 18.

- Advertisement -

While experienced freelancers and gig workers are likely to be aware of the process of filing their own taxes, it can be a daunting task for anyone new to the industry. The important thing to remember is that you are responsible for reporting your gig work income for each client or company that pays you more than $600 in 2022.

One reason for all the confusion? Your tax documents may not have arrived via snail mail (the way they usually do with full-time employers) – especially as more and more companies begin to offer digital copies of tax filing documents. .

- Advertisement -

Regardless, you should have everything you need (on paper, digitally, or both) from any company you contract with by January 31. In any year, if you haven’t received anything by the end of February, get in touch ASAP.

Here’s a rundown of the tax forms you’ll need to use as a gig worker — plus a look at the tax policies of five of the most popular gig app companies: Instacart, DoorDash, Grubhub, Lyft, and Uber.

- Advertisement -

Common Tax Form for Gig Workers

In the eyes of the IRS, you are a self-employed worker. This means that it is up to you to compile the appropriate tax forms and accurately report your income.

General Income Form sent to you

Companies that paid you more than $600 in a calendar year must send you a 1099 (either digitally or in the mail), as required by law. If you work at more than one app, you may receive 1099s from each company. And depending on the companies you work for, you may receive up to three different types of 1099s per company.

The 1099-NEC was introduced in 2020 and is the main tax form now used to report non-employee compensation of $600 or more. Many companies previously used a 1099 MISC (Box 7) to report this income, and if you’re an independent contractor who used to receive that form, you can now receive this one instead. On this new form, you’ll use the amount in box 1 to report your self-employment income.

Line 1 of the 1099-NEC form is where you should see your compensation. Chris Zuppa / The Penny Hoarder

Another common form sent to gig workers is the 1099-K form. Previously, employees had to meet certain thresholds (i.e. offer a certain number of rides via Lyft or Uber or earn a certain amount of money in a calendar year) to receive this form. Beginning in 2022, anyone receiving a payment over $600 through a third-party network or debit/credit card transaction will receive this form, regardless of the number of transactions they made.

A graphic highlights that field gig workers will see their income on a 1099k form. Line 1a on Form 1099-K is where you’ll find the gross amount made from card and third-party transactions. Chris Zuppa / The Penny Hoarder

Note: On December 23, 2022, the IRS announced that it would consider the 2022 tax year as a transition year for this new policy. Translation? You may or may not receive this form from the company you worked for, depending on how much you earned and whether you initially followed the proposed 2022 guidelines.

If you own a business that accepts credit or debit card payments, drives for a rideshare company, or sells goods on various online platforms—you may have received this form. Self-employed workers must use this form (along with the NEC) to report gross income earnings for the year. Pay special attention to box 1A (your net income) as well as boxes 5A-5L (your net income month-to-month) to understand how much money you received through third-party networks.

The 1099-MISC, short for Miscellaneous Income, has undergone a lot of changes over the years to accommodate the creation of the new 1099 NEC tax form. As we mentioned above, this form used to be the number one tax form for gig workers and independent contractors. But in 2023? Not so much.

While you can still receive this form as a gig worker, it is not necessary because of your job. People who are receiving a 1099-MISC today are often receiving it for reasons such as at least $600 or more in rent, medical payments, or prizes and awards. If you receive one of these forms, just remember that the amounts listed on it will need to be reported as income.

Tax Return Forms You Send to the IRS

After tracking all of your 1099s and tallying up your net income, your next step is to get that number as low as possible by subtracting any and all applicable business expenses and deductions.

pro tip

Most Uber and Lyft drivers do not meet the 1099-K threshold and will not receive this form. Again, even if they don’t send you the form, you’re still responsible for reporting your earnings.

As a gig worker, you may need to file the following tax forms with the IRS:

Form 1040: This is now the main form used by all US taxpayers to file their annual income tax return. (Forms 1040S and 1040EZ are no longer available.) Schedule C: A subform of 1040 that is used to tally your gains and losses as an independent contractor. Line number 1 is where you report gross income from all 1099s or from the income summary provided in your gig app. The subsequent boxes are examples of business expenses that you can use to reduce your taxable income. Line number 31 is your net profit, a number you’ll need for Schedule SE. Schedule SE: This is another 1040 subform for self-employed (gig) workers. Use this to calculate your self-employment tax. Schedule 2: is an “Additional Tax Form,” ie where you provide the amount owed in self-employment taxes from the SE form above. Put that figure on line number 4 and the grand total on line number 21. Form 1040-ES: Use this form instead of the standard 1040 if you need to file quarterly taxes.

If you have $600 or more in net earnings from self-employment from gig work, whether it’s a side job, part-time, or temporary, you must file a tax return.

Tax policies and resources from 5 popular apps

Which forms you receive and which tax service you choose to file with depend on the company you’re working for. Each company has slightly different tax policies and may offer discounts for various tax-filing software services. Here’s how they stack up.

pro tip

feeling overwhelmed? If you’re worried about making mistakes, we recommend using tax software such as H&R Block, TurboTax or TaxAct.


DoorDash partners with Stripe. You’ve received your 1099-NEC via Stripe e-delivery by December 31, 2022, according to the company. The company no longer sends contractors details on their mileage, but instead recommends signing up with a mileage tracking app like Everlance to track your miles. throughout the tax year and see if you qualify for any exemptions. Review DoorDash’s Tax FAQ for more information. If you haven’t received your 1099-NEC or mileage information, contact DoorDash customer support.

Primary tax form: 1099-NEC.

Who: Dashers who earned more than $600 in the previous calendar year.

How: Electronic form (unless you have opted for paper delivery instead).


Like DoorDash, Instacart has partnered with Stripe to provide tax forms to its contractors. If you earned $600 or more with the company in 2022, you should expect to receive an email with tax information from Stripe or Instacart in early January 2023—at which point you can download your forms from Stripe Express. Will be able to If you have any problems receiving your forms, or have any questions, you can contact the company by logging into the Shopper’s Helping Center.

Primary tax form: 1099-NEC.

Who: Instacart shoppers who earned more than $600 in the previous calendar year.

How: Electronic form.


If you are a Grubhub driver who earned more than $600 in 2022, and enrolled in electronic communications, you should have received your 1099-NEC via email by the end of January 2023. If you opted out of electronic tax communications, you probably received a mailed copy of the form at that time.

Visit Grubhub’s Tax FAQ for more information. If you haven’t received your form by February 15, Grubhub recommends contacting the Driver Care team [email protected] or at 866-834-3963.

Primary tax form: 1099-NEC.

Who: Grubhub drivers who earned more than $600 in the last calendar year.

How: Electronic and paper form.


According to Lyft’s tax site for drivers, the company offers discounted self-employed tax-filing services with TurboTax. All Lyft drivers receive 25% off TurboTax Self-Employed and TurboTax Self-Employed Live Federal Filing.

Platinum drivers get 50% off. To access your tax documents online (which can include 1099-s as well as 1099-nets), log in to your driver dashboard and click on the “Tax Information” tab. There, you’ll be able to see your 1099-NEC, 1099-K, and an informal tax summary document compiled by Lyft. The tax summary displays your net earnings and is especially useful if you don’t meet the earnings threshold for a 1099 form. All tax related documents will be available in your dashboard by January 31, 2022.

Primary tax forms: 1099-K and 1099-NET.

Who: Lyft drivers who earned more than $600 in the previous calendar year.

How: Electronic and paper form.


Like Lyft, Uber has partnered with TurboTax to provide free self-employed tax-filing services — plus 50% off live chats with TurboTax’s CPAs.

You can view your tax summary on or after January 31 (which may include 1099-forms as well as 1099-net) through the Tax Info tab of your partner dashboard. If you don’t meet the income threshold for a 1099 form, you should still have access to Uber’s tax summary. For more information about the tax documentation provided by Uber, visit their Tax Support page.

Primary tax forms: 1099-NET and 1099-K.

Who: Uber drivers who earned more than $600 in the previous calendar year.

How: Electronic and paper form.

Contributor Larissa Runkle specializes in finance, real estate and lifestyle topics. He is a regular contributor to The Penny Hoarder. Contributor Matt Mastsky contributed to this report.

Ready to stop worrying about money?

Get The Penny Hoarder Daily

Source link

- Advertisement -

Recent Articles

Related Stories