Uber is one of the fastest growing companies that many people are familiar with. With a company that large, it is probably likely that the company has many employees that all need to use their income for tax preparation. Trinity residents might think that Uber drivers are individuals that work for the company, so they will receive a w-2 form, but this is not true. In fact, Uber drivers are actually considered self-employed, so it is important to work with a tax professional that is knowledgeable about filing taxes for someone who has their income recorded on a 1099 form that must be submitted to the IRS.

How do Uber Drivers Pay Their Taxes?

Most people assume that when someone is driving their car on behalf of Uber, that this means that they are an employee of Uber, but this is not true. When someone is driving around people under Uber, they are technically considered to be a contractor that is self-employed, and should file accordingly when they are doing tax preparation. Trinity residents should be aware that if they were to be considered an employee of Uber that they would be receiving benefits such as health insurance or vacation time, but these benefits are not extended to Uber drivers themselves.

Tax Deductions for Uber Drivers

Like any other occupation that has taxes collected as a part of their work, Uber drivers also have the ability to claim tax deductions from their services if they are able to be recorded. When it comes to tax preparation, Trinity Uber drivers should know that the biggest deduction will come from car expenses such as regular fill ups, repairs, and depreciation. For example, every time someone fills up gas while they are in the process of driving someone around for Uber should get a receipt that can be submitted along with their 1099 form and other tax information.

*Disclaimer: The views expressed here are those of the authors and do not necessarily represent or reflect the views of Suncoast CPA Group*