Tax Tips for Self-Employed Rideshare & Delivery Drivers:
Remember, you are not an employee of Uber, UberEats, VIA, Postmates, or Lyft when you work as a rideshare or delivery driver. You are self-employed. What does that mean for your taxes?
Each “pay out” or “paycheck” you receive is untaxed. So you have to make sure to pay for federal and state income taxes. Don’t forget Social Security and Medicare, too. Sometimes, those taxes can add up to anywhere from 30% to 50% of your income, so paying them on time and accurately is important. Also, saving money towards these taxes will help you in the long-run.
You will report income and expenses on Schedule C and Schedule SE.
Your CPA can advise you on which will be most cost-effective.
Lastly, you most like received a copy of at least one Form 1099 either via mail or downloadable online. As your tax experts, we can help you understand the payment reports.
If you found this helpful, send us a reply and we’d be happy to offer you a free consultation. If this doesn’t apply to you but does to someone else, share this information with them!
Ahad&Co specializes in a number of industries including the rideshare and TLC drivers. Utilize our expertise and save the most money on your annual taxes.