Do you drive for Uber or Lyft and are wondering “how do I report this on my taxes?” or “I made to much money driving, the IRS is
gonna screw me!â€ Do not worry my rideshare driving friend; Palmer Income Tax is here to help. Sense the beginning of Uber and Lyft
we have been able to lower the amount of taxes paid on this income for so many clients. This is done by correctly calculating
your expenses when you are on the clock for any rideshare company. here are a few tips on what to do to report your rideshare income
First thing is find a competent tax professional (like us here at Palmer Income Tax) to do your taxes. Self employment taxes can get
complicated. It is very important to have someone that is familiar with the Uber and Lyft business model and know everything that
can be deducted to report it correctly. With the info in this blog you will know what can be deducted. But how to report it on your
personal taxes is a whole different monster and that is what we at Palmer are here for.
Second is to calculate your mileage correctly. This month these companies will be sending you a statement showing the income made
and the mileage drove. This mileage is going to be your largest deduction. The problem with the statement issued by Uber and Lyft
is that they only include the miles driven when there is a fair in the car. Although this information is useful you also need to
calculate how many miles where driven to and from fairs. If you have not yet downloaded a mileage tracking app for your smart
phone do that ASAP as this is the easiest way to prove to the IRS of your mileage.
Lastly, are you one of those awesome drivers that give water bottles to your fairs? gum? candy? charge there phones? All of this is
deductable so keep your receipts!
Although this is a general overview of what you can deduct a case by case analysis is still necessary to get your tax liability as
low as possible. We also walk all of our client that drive for Uber and Lyft what they can do in the future to prepare and track
all expenses so next year you will be ready to go. That is what we are experts in here at palmer. So give us a call and set up an
appointment when you are ready to file and get the highest possible refund on your returns this year.
Happy New Year!!