Instead of sitting at home watching TV reruns during their
down time, some of your clients are making extra cash by offering their
services in the shared economy. One of the most popular methods is to become a
driver for a company like Uber or Lyft. Essentially, you operate your own
vehicle like a taxi cab, picking up and dropping off fares, utilizing a
schedule that’s convenient for your lifestyle.
What are the tax consequences? The answer is not quite as
simple.
When you’re a driver for Uber or Lyft, you receive a 1099
from the company, indicating the compensation received during the year. This is
the amount you must report to the IRS, and any appropriate states, as taxable
income. So there’s no such thing as a “free ride.” The type of form depends on
the volume of your activities, Typically, the company will provide a 1099-MISC
for low-to-middle-volume drivers, but a 1099-K if you had more than 200
transactions and $20,000 in payments.
Read More: http://www.cpapracticeadvisor.com/news/12316225/tax-rules-for-uber-lyft-and-other-ride-share-drivers
Questions: http://rehcpas.com/
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