If you’re frantically looking for your Uber W2 for your tax preparation, STOP.
First, you don’t expect a W2 form from Uber. Uber drivers are considered independent contractors. What you should be looking for is your Uber 1099 Form. Don’t confuse the W2 to file the appropriate tax return.
W2 vs 1099: Why Uber drivers don’t get a W2
The W2 forms are for typical, salaried employees. Salaried employees also get employer benefits such as Social Security, healthcare, paid time off and leave, and overtime pay. Also, W2 employees get payroll tax deductions from their paychecks automatically and directly paid to the government by their employers.
1099 forms are for the self-employed or independent contractors. This type of employment entails personal responsibility for calculating payroll taxes and paying it directly to the government. This is YOU.
Uber drivers are hired to work under the company name ‘Uber’, so why are they regarded as independent contractors?
You’re self-employed if you:
- Have your own method of accomplishing tasks
- Set your own schedule or timeline
- Can have more than 1 client
- Can turn down offers or requests; work on case-to-case or project-basis
1099 Forms for Uber Drivers
1099 forms are used to determine the amount of income you earned and the category in which your income falls under. This information will also be used in different parts of your tax return, so be sure you get your Uber 1099 forms early to prepare for the April 17 deadline.
Uber generates a 1099-MISC form and/or a 1099-K form to be sent to its drivers and the IRS. Technically, 1099-MISC forms are for other sources of payout such as bonuses, referrals, etc. And in the case of Uber drivers, it’s for those who earned more than $600 the previous year from their ridesharing or ride-hailing business.
The 1099-K form is only applicable to independent contractors or businesses that accept credit card payments or third-party processors like Paypal. But that is if they received over $20,000 from more than 200 individual transactions.
So in a nutshell, the things you should remember:
How to access your Uber 1099
Check out this 45-second video showing how to access your tax information.
If you don’t want to view the video above, you can check out our step by step guide below to access all your tax information.
1.) Just log into your Uber Partners Account and click on “Tax Information” at the top.
2.) On the “Tax Information” page, you’ll see all the “Tax Documents” for the year. Click Download for the year you want.
3.) You’ll see a tax summary for the year you’ve downloaded.
Click on one tax year and you will be directed to a page similar to the photo above. The page shows your registered address and Uber tax ID number.
4.) Here you can find a breakdown of your earnings for the period.
Uber provides information on your gross earnings, expenses, and net payout. You can see on the options the taxes and fees deducted by Uber. You can also see the registered miles for official Uber business (which you can use for you Standard Mileage Deduction link to uber deductions) and the number of completed trips.
If you don’t want your digital 1099, you can have it mailed to your registered address. Make sure that the registered name on your Uber profile reflects your legal name as this will be the name on the form you will receive.
However, just because you received 1099 doesn’t automatically mean you owe taxes. Your income might be offset because of deductions, or some or all of it might be sheltered (depending on how that income was generated). But it’s a gentle reminder that the IRS knows about it.
Paying for your Uber taxes
Filing your Uber taxes is much like filing your yearly taxes – you compile all necessary forms, apply all eligible deductions, pay for your taxes. However, the main difference is this: Taxpayers that fall under the self-employed category can’t wait until the April 17 deadline for a one-time payment of taxes.
You’re required to pre-pay your estimated taxes in 4 equal installments each year. Take note of the quarterly tax deadlines to avoid incurring penalties. You can get fined if you file or pay after the deadline, or if you simply don’t pay enough taxes.
Since it’s impossible to get an accurate prediction on how much you are likely to earn for the year, the IRS only imposes a modest interest penalty if you don’t pay enough estimated tax. To avoid this, you can pay 90% of your total tax due for the current year or 100% of your previous year’s taxes (110% for high-earners), whichever amount is smaller.
For a more detailed guide on how to use your 1099 forms to file your taxes, read this.
Tax Deductions to Consider
You shouldn’t forget to apply all eligible tax deductions for your Uber business. There are a lot of deductible business expenses such as:
- Paypal and credit card fees you pay for every ride transaction
- Parking and toll fees
- Uber commissions or fees that are automatically charged to you
- Interest on a car loan
- Any extra insurance coverage you got for your ride-sharing business
- Cost of your business phone/s
- Actual car expenses such as gas, repairs, etc.
- Mileage run for business purposes
- Other expenses, such as water or candy that you provide for passenger
You can file your Uber taxes using a reliable tax software such as Locus Tax. Start your returns for free and rest your worries about tax season. It’s a hassle-free solution