# How to report Uber earnings while collecting unemployment?



## renbutler

I was laid off in July, and I have been driving Uber for extra cash while also looking for a new job and collecting severance.

My last severance paycheck will be coming in a couple weeks, and then I will be eligible for unemployment (if, God forbid, I haven't landed full-time work by then).

I fully intend to comply by all legal rules while filing for unemployment, so I understand that I have to report all part-time and self-employment income each week that I file. I also understand that this would likely reduce my unemployment benefit.

But here's the question: *If I am legally self-employed with Uber while filing for unemployment, do I report my GROSS income from Uber, or my NET income after deducting expenses? *And would I deduct actual expenses, or the much larger standard mileage discount?

(My state's unemployment web site does an extremely poor job of addressing this, and the phone number is voice-prompt hell.)

I'm hoping for answers from somebody with real-world experience about this. I understand that each state might have different rules, but any information would be welcome.


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## Disgusted Driver

I don't have direct experience with unemployment but there's no doubt that for income verification etc... the only number relevant is the net. Gross - .57 a mile driven whether empty or not is your actual income. 

P.S. I applaud your integrity.


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## chi1cabby

I would assume that you'd report your actual Income, not the Uber payout, and definitely not your gross Uber Fares. Check for instructions for reporting self employment income while applying for Unemployment Benefits on the State's website.

Similar Uber unemployment benefits cases:
*Florida | For Uber, loyal drivers and a new fight for unemployment benefits*

*LA Uber Driver Got Unemployment Benefits*


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## renbutler

Thanks for the replies.

I know that if I got a regular part-time job (such as in retail), I would have to report gross (pre-tax) income. It just seems that self-employment would be a little different because of all the expenses associated with it.

That said, if I use the standard mileage deduction, I wouldn't have to report any income at all because it results in a loss (for tax purposes). It seems like actual estimated net would more accurately apply to the entire point of getting unemployment.


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## SCdave

It would be great if you could get the assistance of a local (for you) Non Profit that could provide a professional (like a CPA) who would produce the Net Income figures for you.

This would help not only yourself but many many others. And not only in your home state but nationwide. I know this would be more work for you, but it would be great work.

Good luck and keep us informed.

Maybe you could contact your local CPA Association. Or maybe this journal and let them know what your goals are. Then see if they might help you to figure out your actual Net Income as an Uber Driver. Benefits for a CPA or the Accounting Journal? CPAs/Accounts are going to see more 1099 OnDemand clients going forward so it is very relevant for a great article.

http://www.journalofaccountancy.com/issues/1999/nov/shaferl.html

_*FOR THE PUBLIC GOOD*_


_"CPAs have numerous opportunities to make a difference in their communities. Many provide pro bono accounting services through not-for-profit groups such as Accountants for the Public Interest (API). API has 21 affiliate organizations nationwide that coordinate pro bono efforts by matching volunteer accountants with individuals and organizations that need their expertise. The volunteers come from all sectors of the accounting profession, including public accounting firms, private industry, government and educational institutions. Although the services offered through API affiliates vary widely, they commonly include consulting on accounting and auditing matters and providing accounting or income tax assistance and help in preparing for audits. Services are offered only to qualifying organizations, such as small not-for-profit organizations or businesses that cannot afford to pay for them, and individuals, such as poor, elderly and disabled taxpayers"_


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## renbutler

Thanks, but my issue isn't really about how to determine my net income. I know how to do that.

My only question is which number (gross/net taxable income/actual net) the unemployment bureau expects me to report.


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## Txchick

renbutler said:


> Thanks, but my issue isn't really about how to determine my net income. I know how to do that.
> 
> My only question is which number (gross/net taxable income/actual net) the unemployment bureau expects me to report.


Actual net after Ubers fee & SRF.


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## cybertec69

This is how it works, when you do your taxes, you will receive a 1099 from uber with your total gross income "what they deposited into yourbank account" including the uber free, you will have two options "you can choose only one or the other" not both " for deductions, expenses such as insurance, registration costs, tolls, phone costs, wear and tear, gas, pretty much anything associated with operating the car as a Taxi, it will also ask you what type of car and year, and your second option is the mileage ", last year I chose the mileage" fudged the numbers a little bit ", it exceeded my overhead costs, not by much. Now you will add ALL the income from uber including their fees" what it says on the 1099k form they send you" into the first line item, then there will be another line item for commissions paid "which is the uber cut", you are not held liable for that amount, uber is. 
Example :
1099 total income is 10,000
Uber fee 28%=2,800
Total =7,200 "this is the number you will be held tax liable for.
The reason Uber does this is because, they also send this information to the Fed, which means you can not fudge the uber cut they withhold from you, since they are also liable to pay taxes on.
So if you did 10,000 miles you are able to write off $5700 of that $7200, which means you are liable to pay taxes for the $1500 that is left at a 35% tax rate.


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## SCdave

renbutler said:


> Thanks, but my issue isn't really about how to determine my net income. I know how to do that.
> 
> My only question is which number (gross/net taxable income/actual net) the unemployment bureau expects me to report.


No problem, just thought maybe a CPA might be a better source than some of us on this Forum. Especially since you will be filing for unemployment.


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## renbutler

cybertec69 said:


> This is how it works, when you do your taxes, you will receive a 1099 from uber with your total gross income "what they deposited into yourbank account" including the uber free, you will have two options "you can choose only one or the other" not both " for deductions, expenses such as insurance, registration costs, tolls, phone costs, wear and tear, gas, pretty much anything associated with operating the car as a Taxi, it will also ask you what type of car and year, and your second option is the mileage ", last year I chose the mileage" fudged the numbers a little bit ", it exceeded my overhead costs, not by much. Now you will add ALL the income from uber including their fees" what it says on the 1099k form they send you" into the first line item, then there will be another line item for commissions paid "which is the uber cut", you are not held liable for that amount, uber is.
> Example :
> 1099 total income is 10,000
> Uber fee 28%=2,800
> Total =7,200 "this is the number you will be held tax liable for.
> The reason Uber does this is because, they also send this information to the Fed, which means you can not fudge the uber cut they withhold from you, since they are also liable to pay taxes on.
> So if you did 10,000 miles you are able to write off $5700 of that $7200, which means you are liable to pay taxes for the $1500 that is left at a 35% tax rate.


Thanks, but my question has nothing to do with figuring out taxes.

I know all of that stuff, but year-end calculations do me no good if I need to file for unemployment _in a couple weeks_.


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## renbutler

SCdave said:


> No problem, just thought maybe a CPA might be a better source than some of us on this Forum. Especially since you will be filing for unemployment.


Right, I'm not looking for professional advice necessarily. I was looking for guidance if anybody here had real-world experience.


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## Disgusted Driver

Again, I'm going to argue that it's after you deduct your mileage expenses. If that's zero or less than you have no income, it's essentially a hobby. Using a hypothetical: You make 1000.00 one week, after the Uber cut. You drove 1000 miles to do so resulting in a 570.00 mileage deduction. Your pretax earnings (just like working) is $430, that's what you would declare. If it's zero, you are done. With your head held up high you can say that you made nothing from your Uber activities, nothing more to it. You do not have income if your expenses are greater than your payment.


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## renbutler

Disgusted Driver said:


> You do not have income if your expenses are greater than your payment.


I understand that, but the question remains whether it should be based on taxable income calculations, or real-world profits (which are very different numbers). That's why I'm hoping that somebody who has discussed this with a CPA has any advice based on personal experience in their state.


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## cybertec69

renbutler said:


> I understand that, but the question remains whether it should be based on taxable income calculations, or real-world profits (which are very different numbers). That's why I'm hoping that somebody who has discussed this with a CPA has any advice based on personal experience in their state.


Exactly what profits are we talking about, with Uber there is none.


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## renbutler

Well, that certainly adds nothing to the convo.

I've made a profit using real-world numbers, and I have a loss using the standard mileage deduction. That's the question: which one to use, legally.

There are plenty of threads for sniping at Uber. Instead, this is a thread intended for sharing useful information.


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## chi1cabby

renbutler said:


> I've made a profit using real-world numbers, and I have a loss using the standard mileage deduction. That's the question: which one to use, legally.


Income calculation using the IRS¢57.5/Mile Standard Deduction for use of a car for business purpose is legal. Use that method if you have a detailed mileage log of your Uber driving.


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## zombieguy

Its always the gross, you always report the gross whether its taxes or unemployment. At your job lets say you made a $1000 a week but you had money deducted for medical and a 401K. When you contact unemployment you don't tell them well I make $1000 a week and get $100 deducted for this and another $100 deducted for that, you tell them your gross amount before taxes or nay deductions. Reporting Uber works the same way.


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## Disgusted Driver

zombieguy said:


> Its always the gross, you always report the gross whether its taxes or unemployment. At your job lets say you made a $1000 a week but you had money deducted for medical and a 401K. When you contact unemployment you don't tell them well I make $1000 a week and get $100 deducted for this and another $100 deducted for that, you tell them your gross amount before taxes or nay deductions. Reporting Uber works the same way.


With all due respect, I don't think so, here's why. At your job as an employee, you do not typically have reimbursed expenses. If you use your own car, they pay you. If you use your own tools they pay you, .... This is not a job, different rules apply. The deductions that you are talking about are elective so of course they wouldn't count, you are just choosing how to spend the money you earned.


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## renbutler

I agree with DD on this. With medical insurance and 401(k), you are essentially electing to spend that money, and you are immediately getting a quantifiable service in return.

With Uber's commission, I never had that money. I never would have received that money no matter what, and I never had a choice about what to do with it. (I know that taxes are similar, but you never know until next year whether you paid too much or too little, and by then it's probably too late to adjust the unemployment benefit.)

The only thing I can think of associated with a regular job that I would exclude would be something like a mandatory uniform fee, if that were deducted from a check. There might be other similar examples.


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## renbutler

It is my intention to follow the rules to the letter.

It is my responsibility to report income every week that I file for benefits, and that includes anything that Uber paid me. This means I report the week I'm paid, not the week I work.

If I have a good week of income (Uber or otherwise), I'll simply tell the state that I am not filing that week, and then I would not lose any weeks of eligibility.

The only question that still remains is whether I report the gross (unlikely), the taxable income (possibly, although it will be moot as this number is negative), or the actual profit (seems mostly likely).


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## zombieguy

Disgusted Driver said:


> With all due respect, I don't think so, here's why. At your job as an employee, you do not typically have reimbursed expenses. If you use your own car, they pay you. If you use your own tools they pay you, .... This is not a job, different rules apply. The deductions that you are talking about are elective so of course they wouldn't count, you are just choosing how to spend the money you earned.


Then he won't get unemployment at all. If you want to consider it business expenses then you have your own business and therefore do not qualify for unemployment.

I wouldn't tell unemployment anything about Uber.



renbutler said:


> I agree with DD on this. With medical insurance and 401(k), you are essentially electing to spend that money, and you are immediately getting a quantifiable service in return.
> 
> With Uber's commission, I never had that money. I never would have received that money no matter what, and I never had a choice about what to do with it. (I know that taxes are similar, but you never know until next year whether you paid too much or too little, and by then it's probably too late to adjust the unemployment benefit.)
> 
> The only thing I can think of associated with a regular job that I would exclude would be something like a mandatory uniform fee, if that were deducted from a check. There might be other similar examples.


Uber technically doesn't pay you a commission. You pay Uber a fee for processing the payment the rider is giving you and they take their cut before passing on the rest to you. This is your business. They don't issue a 1099misc, they issue a 1099k that has the gross amount before Uber fees. It is up to you to make those deductions.


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## renbutler

zombieguy said:


> Then he won't get unemployment at all. If you want to consider it business expenses then you have your own business and therefore do not qualify for unemployment.


That's not true. Certainly not in my state. And most others, apparently:

https://www.sba.gov/blogs/laid-and-...s-understand-your-unemployment-benefits-first

Hours worked is important; whom you worked for is not.


zombieguy said:


> I wouldn't tell unemployment anything about Uber.


Well, then I would be lying, committing fraud, risking prosecution, and putting my family's welfare in danger...



zombieguy said:


> Uber technically doesn't pay you a commission. You pay Uber a fee for processing the payment the rider is giving you and they take their cut before passing on the rest to you. This is your business. They don't issue a 1099misc, they issue a 1099k that has the gross amount before Uber fees. It is up to you to make those deductions.


I never said Uber pays a commission. Uber's commission is what WE pay to Uber ($1 plus 20%, in my case).

I was talking about expenses in that context, not income. The commission to Uber is essentially one of my expenses.


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## Tim In Cleveland

You actually need to call a cpa to be sure, but of course you would only want to report the true NET. Deduct $.57 a mile from what you're actually paid and also deduct any perks you are providing: i.e. satellite radio, barf bags, refreshments, cost of your cell phone, internet access (this job would be hard to complete without internet access. Even accessing this forum could be considered training as you learn from other drivers). Do not deduct car washes and repairs, those are normal maintenance included in the $.57. Do not deduct haircuts, dental visits, clothing and other stupid stuff cheaters deduct.


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## renbutler

I don't consider that the "true" net at all. That's just the way to determine _taxable _income. It's important and useful, but it might not be applicable to the unemployment equation.

I consider the money that goes in my pocket (or bank account) after actual expenses to be my "true" net.

Regardless, I'm not sure why a CPA would need to be involved. The unemployment agency would most likely have the answer I need, if I finally get the stomach to sit on hold or stand in line to talk to somebody.


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## Tim In Cleveland

renbutler said:


> I don't consider that the "true" net at all. That's just the way to determine _taxable _income. It's important and useful, but it might not be applicable to the unemployment equation.
> 
> I consider the money that goes in my pocket (or bank account) after actual expenses to be my "true" net.
> 
> Regardless, I'm not sure why a CPA would need to be involved. The unemployment agency would most likely have the answer I need, if I finally get the stomach to sit on hold or stand in line to talk to somebody.


taxable income IS YOUR TRUE net. I've had my own business for 17 years and know submitting a profit and loss statement INCLUDING ALL DEDUCTIONS is accepted as net income. Since you don't believe me, play it safe and pay the $25 a cpa would want to answer the question over the phone. Hell, he might not even charge you anything to answer it. Don't listen to dipstick employees at the unemployment agency. Each one will give you a different answer while the cpa will tell you what the IRS considers income and the unemployment agency has no right to come up with different methods.


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## renbutler

Look, I appreciate your effort, and I understand what you're trying to say.

But this discussion is only peripherally about taxes. It's wholly about unemployment insurance and benefits.

The state unemployment agency _absolutely _is the enforcement party in this discussion. They -- not the IRS -- enforce every part of the rules that concern me and my situation.

I was simply interested in whether anybody had any real-world experience in regard to self-employment during unemployment, but apparently nobody here has. So I guess I'm calling the unemployment office tomorrow.


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## Disgusted Driver

Good luck!


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## StarzykCPA

Did you get an answer? What state are you in? The answer will vary by state, but generally I think it's gross.

I believe in Virginia you would need to report your gross amount. They would then deduct $50 from that gross amount to determine the impact on your benefits. You also report the gross amount to Massachusetts, but I'm not sure how it would impact your benefits there.


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## daniel mondello

Good for you. .


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## renbutler

StarzykCPA said:


> Did you get an answer? What state are you in? The answer will vary by state, but generally I think it's gross.
> 
> I believe in Virginia you would need to report your gross amount. They would then deduct $50 from that gross amount to determine the impact on your benefits. You also report the gross amount to Massachusetts, but I'm not sure how it would impact your benefits there.


I have called yet.

But I do know that here in Indiana, the first 20% of your benefit is guaranteed, but then any dollar made beyond that total is deducted dollar-for-dollar from your benefit.


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## SelectRangeRover

renbutler said:


> I have called yet.
> 
> But I do know that here in Indiana, the first 20% of your benefit is guaranteed, but then any dollar made beyond that total is deducted dollar-for-dollar from your benefit.





renbutler said:


> I was laid off in July, and I have been driving Uber for extra cash while also looking for a new job and collecting severance.
> 
> My last severance paycheck will be coming in a couple weeks, and then I will be eligible for unemployment (if, God forbid, I haven't landed full-time work by then).
> 
> I fully intend to comply by all legal rules while filing for unemployment, so I understand that I have to report all part-time and self-employment income each week that I file. I also understand that this would likely reduce my unemployment benefit.
> 
> But here's the question: *If I am legally self-employed with Uber while filing for unemployment, do I report my GROSS income from Uber, or my NET income after deducting expenses? *And would I deduct actual expenses, or the much larger standard mileage discount?
> 
> (My state's unemployment web site does an extremely poor job of addressing this, and the phone number is voice-prompt hell.)
> 
> I'm hoping for answers from somebody with real-world experience about this. I understand that each state might have different rules, but any information would be welcome.


Did you ever get an answer on this?


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## boredwithitall

I like how you dragged this thru the mud and back, how you wanted to be doing the right thing. but yet you were wanting to claim "UN"employment. when you are clearly "EMPLOY"ed . if you are driving for uber.


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## David Pickett

NJ Unemployment has a place to report some earnings, but my Uber spreadsheet usually shows a net tax loss for my rides, so I have no income. The question this begs is, does the state accept the IRS mileage rate, especially in terms of Unemployment Insurance? NJ seems to say you can use your federal schedule C numbers: http://www.state.nj.us/treasury/taxation/njit11.shtml#sole


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## StarzykCPA

David Pickett said:


> NJ Unemployment has a place to report some earnings, but my Uber spreadsheet usually shows a net tax loss for my rides, so I have no income. The question this begs is, does the state accept the IRS mileage rate, especially in terms of Unemployment Insurance? NJ seems to say you can use your federal schedule C numbers: http://www.state.nj.us/treasury/taxation/njit11.shtml#sole


The link you referenced is for income tax purposes. For income tax purposes, yes you can use your Federal Schedule C numbers.

For unemployment, you probably have to report your gross earnings. I'm not positive, but most states are like that.


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## SmokeyJonez

renbutler said:


> I was laid off in July, and I have been driving Uber for extra cash while also looking for a new job and collecting severance.
> 
> My last severance paycheck will be coming in a couple weeks, and then I will be eligible for unemployment (if, God forbid, I haven't landed full-time work by then).
> 
> I fully intend to comply by all legal rules while filing for unemployment, so I understand that I have to report all part-time and self-employment income each week that I file. I also understand that this would likely reduce my unemployment benefit.
> 
> But here's the question: *If I am legally self-employed with Uber while filing for unemployment, do I report my GROSS income from Uber, or my NET income after deducting expenses? *And would I deduct actual expenses, or the much larger standard mileage discount?
> 
> (My state's unemployment web site does an extremely poor job of addressing this, and the phone number is voice-prompt hell.)
> 
> I'm hoping for answers from somebody with real-world experience about this. I understand that each state might have different rules, but any information would be welcome.


always deduct your mileage, its always a bigger tax write-off and you report your gross income, just like you would with any other job..
the money you make from Uber will come off the top off your unemployment benefits.. For example, if your unemployment is $600/week and you made $230 driving with Uber, your unemployment will only give you $370 that week.. if you make more than $600/week with Uber, your unemployment benefits will be cancelled..


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## SCdave

David Pickett said:


> NJ Unemployment has a place to report some earnings, but my Uber spreadsheet usually shows a net tax loss for my rides, so I have no income. The question this begs is, does the state accept the IRS mileage rate, especially in terms of Unemployment Insurance? NJ seems to say you can use your federal schedule C numbers: http://www.state.nj.us/treasury/taxation/njit11.shtml#sole


If you are going to give this a try, then you are saying you are an Uber Employee and not an Independent Contractor. Therefore, Schedule C and Net Income AFTER Deductions like the Mileage Deductions should not be considered, right?

You are filing for "unemployement".

_I am not a Tax Attorney, a CPA, or have any professional knowledge to pass on. I'm just using logic and what I read._


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## David Pickett

NJ wants you to report WAGES, and is not very informative about being a sole proprietor while unemployed. I sent them an email. Reporting the Gross seems a bit extreme, but safe, and in many cases might not reduce your UI check. Also, unused UI in any week extends the end of your UI.


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## Emmanuel12

I can't believe this bum is driving for Uber and wants to collect unemployment instead of getting a real job. I will tip the IRS about people driving for Uber and wanting to milk the system


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## mattertea

Any results from this? Looking over the UI section for reporting self-employment in NJ, its asking for net-income, not gross.
Sole Proprietorships
If you are self-employed, the amount of net income derived from your independent business, trade, or profession must be reported on your New Jersey personal income tax return. Net income is the profit realized from operating your business. It is the amount of business revenues remaining after deducting costs and operating expenses and is calculated using the same accounting method and period used for Federal income tax purposes.


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## SCdave

Emmanuel12 said:


> I can't believe this bum is driving for Uber and wants to collect unemployment instead of getting a real job. I will tip the IRS about people driving for Uber and wanting to milk the system


Wait, you mean you will tip the IRS about Uber having Employees but not paying FICA payroll taxes. And also tip your state unemployement agency about Uber not paying into the state unemployment pool. Wait, in a way, having an Uber Driver file for Unemployement with Uber as the last Employer, is drawing attention to "Uber milking the system".

Yes, I understand what you are saying but me thinks you are focusing your energy on the wrong side of this coin. It is Uber, and not the individual drivers that are screwing the drivers and local/state/fed agencies.


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## SCdave

Tim In Cleveland said:


> taxable income IS YOUR TRUE net. I've had my own business for 17 years and know submitting a profit and loss statement INCLUDING ALL DEDUCTIONS is accepted as net income. Since you don't believe me, play it safe and pay the $25 a cpa would want to answer the question over the phone. Hell, he might not even charge you anything to answer it. Don't listen to dipstick employees at the unemployment agency. Each one will give you a different answer while the cpa will tell you what the IRS considers income and the unemployment agency has no right to come up with different methods.


This is an interesting question. The starting point is that if you are filing for Unemployment, you are saying you were an employee and the last employer was Uber. Therefore you are not considering yourself a business.

So the question is how to state your salary or wages earned by working as an employee driver for Uber?


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## David Pickett

The NJ UI System seems to accommodate people who work in alternative, temporary or part time jobs while not fully employed in their normal occupation. The funds they reduce the UI payment for earnings over a threshold are available as longer UI availability.


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## ginseng41

When I applied for unemployment they told me I had to use gross income. I used the after uber fees part but I went through hell with this. It may vary state by state, but in Virginia, that's what I was told


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## cferrel

put it under a C corp or LLC so taxes are paid via them.


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## David Pickett

Since my Uber and Lyft trips are a federal tax shelter = loss, I would not need to report them unless the state used different rules, like a different mileage rate. Apparently NJ does not, since it is easiest to use the Federal numbers they can verify.


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## thomas1234

boredwithitall said:


> I like how you dragged this thru the mud and back, how you wanted to be doing the right thing. but yet you were wanting to claim "UN"employment. when you are clearly "EMPLOY"ed . if you are driving for uber.


Are you implying that collecting UI not the right thing? Are you also implying that working for uber is being employed as in the definition of an employee?

If this is the case, I don't think you fully understand how UI insurance works. It appears that you are attempting to shame a man for collecting money that he might be entitled to. I say entitled, because that's what UI is; entitlement that is earned by working for a company that pays into UI and then being terminated against your will. If you disagree with the way the system works, than vote, but don't shame people for taking what is owed to them.


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## thomas1234

renbutler said:


> I was laid off in July, and I have been driving Uber for extra cash while also looking for a new job and collecting severance.
> 
> My last severance paycheck will be coming in a couple weeks, and then I will be eligible for unemployment (if, God forbid, I haven't landed full-time work by then).
> 
> I fully intend to comply by all legal rules while filing for unemployment, so I understand that I have to report all part-time and self-employment income each week that I file. I also understand that this would likely reduce my unemployment benefit.
> 
> But here's the question: *If I am legally self-employed with Uber while filing for unemployment, do I report my GROSS income from Uber, or my NET income after deducting expenses? *And would I deduct actual expenses, or the much larger standard mileage discount?
> 
> (My state's unemployment web site does an extremely poor job of addressing this, and the phone number is voice-prompt hell.)
> 
> I'm hoping for answers from somebody with real-world experience about this. I understand that each state might have different rules, but any information would be welcome.


Did you ever get an any experience on how the system works in your state? I am currently going through the same thing. I really don't want to fail to report earnings, and I certainly don't want to report too much earnings.


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## Uber SUCKS for drivers!

renbutler said:


> It is my intention to follow the rules to the letter.
> 
> It is my responsibility to report income every week that I file for benefits, and that includes anything that Uber paid me. This means I report the week I'm paid, not the week I work.
> 
> If I have a good week of income (Uber or otherwise), I'll simply tell the state that I am not filing that week, and then I would not lose any weeks of eligibility.
> 
> The only question that still remains is whether I report the gross (unlikely), the taxable income (possibly, although it will be moot as this number is negative), or the actual profit (seems mostly likely).


Geeeez ... Why all the worry??? Just ignore the whole Uber issue, dont report any earnings (its a loss anyway) everything will be fine.


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## renbutler

Uh, look at the date on the post you quoted. I've been employed full time for eight months now.


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## dcb

Uber SUCKS for drivers! said:


> Geeeez ... Why all the worry??? Just ignore the whole Uber issue, dont report any earnings (its a loss anyway) everything will be fine.
> " No one's actually "making" any $, it's all just a "grand illusion". You are just selling a $20 chunk of your car for $10 each time you accept a ride! You are not making a "wage", you are just "eating" your car in little pieces. Its absolutely no different than selling all your furniture at the flea market! "


I can see why you might make such a claim (about eating your car in tiny pieces), but my analysis based on my personal experience shows different. I supposed that if the following 4 things are all true, then this person may not make much profit relative to his actual expenses. But I doubt anyone is running at a TRUE loss. Paper loss when using IRS standard mileage, sure... Depends on many factors though.

1) Someone grossly over-paid for a vehicle with low bang for the buck (check out sticker for loaded Impala SS - yet can only do Uber/X)
or a quasi SUV without 3rd row seating, yet sticker is over $40,000 after all is included. A used mini-van or mid-level luxury car would
earn better than a loaded 2-row Equinox and cost less per month to own. Look at the vehicle charts before choosing a good used vehicle...
2) That vehicle can only perform basic service. Not eligible for Select, or XL / Plus.
3) Tax deductions are not properly utilized.
4) Never takes advantage of ANY hourly guarantees or Surge / Prime pricing or bonus programs (10% to 20% giveback with Lyft after x number of weekly rides). Also when taking advantage of hourly guarantees your hourly pay during certain hours can easily be comprised of 30% to 50% "free" money. The amount they make up to get you to $30, $33, $35 / hour depending on the hourly guarantee structure. While putting zero additional miles on your car to earn that extra cake.

I do this part time with a used Chrysler 300. A $400 per month car payment for 5 years. Seemed to be the most bang for the buck as far as Select level service with a used vehicle ($21,000 is what I paid with 30K miles on it). Black on black, loaded... I did put about $7,000 down, there were taxes of course, I paid extra for a warranty to take it to 90,000 miles, and all that... but that I paid that entire $7,000 back to myself with my after tax earnings from month #1 and month #2 (Nov/Dec 2015). I had some nice $900 weeks in there during the holidays, mostly $500 to $700 per week average on the others. Like I said I'm part time. My full time career is as a software engineer.

Each week I shoot for $500 minimum net from Lyft and Uber combined. My MONTHLY car payment is $400. My monthly net is $2166 assuming I only make my minimum of $500. Some weeks I make as much as $600 or $700 ($2600, or $3033 per month net, respectively). The annual income for these per week nets are...
$500 / wk = $2166 /mo = $26,000 / yr
$600 / wk = $2600 / mo = $31,200 / yr
$700 / wk = $3033 / mo = $36,400 / yr

As I only owe $19,000 on my car right now after about 8 months of car payments (60 month loan), its evident from the above numbers that I make enough net income from Uber/Lyft to pay my remaining car loan off EVERY YEAR. Or if I do $600/wk average which I may be tracking toward actually, I'll have $11,200 leftover after paying off the car in one year... Moral of story... The car can easily pay for itself in the first year, and every year following that is gravy... Friction due to taxes is quite minor, at around 9.5%. My first year taxes were about 4.5% of my net, but this year the higher percentage due to my healthcare premiums comprising a smaller percent to total for the year, I'll give back 9.5%. My healthcare premiums are $330 per month, I also deduct a reasonable portion of cell phone usage, supplies, IRS standard mileage deduction (will be 54 cents / mile for 2016). I didn't bother with tolls that weren't on rides, nor car washes, nor parking. But I think next year I'll ask my tax guy if parking in metered parking to have dinner (while working) and car washes are deductible as well. Those aren't huge but why not take them if they are valid deductions.. Maybe someone here can tell me that... I see it (worst case for my payment / cost structure as selling a $2 - $3 chunk of my car for $10 each time I accept a ride). Yes per year I'll put a lot more miles on my car. Car will live a shorter life in years than if I didn't use it for this. But I could buy a new car every 5 years and still have quite a high percentage of profit.


----------



## Oscar Levant

renbutler said:


> I was laid off in July, and I have been driving Uber for extra cash while also looking for a new job and collecting severance.
> 
> My last severance paycheck will be coming in a couple weeks, and then I will be eligible for unemployment (if, God forbid, I haven't landed full-time work by then).
> 
> I fully intend to comply by all legal rules while filing for unemployment, so I understand that I have to report all part-time and self-employment income each week that I file. I also understand that this would likely reduce my unemployment benefit.
> 
> But here's the question: *If I am legally self-employed with Uber while filing for unemployment, do I report my GROSS income from Uber, or my NET income after deducting expenses? *And would I deduct actual expenses, or the much larger standard mileage discount?
> 
> (My state's unemployment web site does an extremely poor job of addressing this, and the phone number is voice-prompt hell.)
> 
> I'm hoping for answers from somebody with real-world experience about this. I understand that each state might have different rules, but any information would be welcome.


Net. Keep it simple gross less Uber commission less IRS deduction of 57.5 cents per mile, less 80% of road expenses such as food drinks Etc . Right ?


----------



## Rat

Txchick said:


> Actual net after Ubers fee & SRF.


What you are describing is gross, not net.


----------



## Rat

Oscar Levant said:


> Net. Keep it simple gross less Uber commission less IRS deduction of 57.5 cents per mile, less 80% of road expenses such as food drinks Etc . Right ?


Food and drink are not deductible. You can only deduct half a meal cost if you are entertaining a client. The current IRS deduction for mileage is 54c


----------



## Rat

boredwithitall said:


> I like how you dragged this thru the mud and back, how you wanted to be doing the right thing. but yet you were wanting to claim "UN"employment. when you are clearly "EMPLOY"ed . if you are driving for uber.


Perhaps you are unaware of Uber's complete denial of any employee status?


----------



## I_Like_Spam

renbutler said:


> But here's the question: *If I am legally self-employed with Uber while filing for unemployment, do I report my GROSS income from Uber, or my NET income after deducting expenses? *And would I deduct actual expenses, or the much larger standard mileage discount?
> .


This is a state by state decision on how to deal with self employment income for unemployment claimants.

When I was working for the unemployment office here in Pennsylvania 35 years ago, the examiner would look at your tax returns and decide what to apply each week against your checks for the "sideline business". But the key was that it had to be a "sideline". If it was a mill worker who did some self employed barbering on the side, that was one thing.

But if someone took a self employed gig after they were already on benefits, they'd be through as unavailable for a regular job.


----------



## UberPissed

I am a tax guy but not sure on the number to report, but shooting from the hip (bad pun given current state of affairs) I would say you report your net income that you would report on the tax return. Just do a weekly P&L statement.


----------



## shiftydrake

actually here in Mo they want the gross amount.....they deduct out $for any commission that you show and prove........they will not take into effect ANY expenses since that is a tax deduction only............sorry I have been self employed for 20 yrs and have experienced this.......it's not fun hope you get what you try for


----------



## dcb

renbutler said:


> I was laid off in July, and I have been driving Uber for extra cash while also looking for a new job and collecting severance.
> 
> My last severance paycheck will be coming in a couple weeks, and then I will be eligible for unemployment (if, God forbid, I haven't landed full-time work by then).
> 
> I fully intend to comply by all legal rules while filing for unemployment, so I understand that I have to report all part-time and self-employment income each week that I file. I also understand that this would likely reduce my unemployment benefit.
> 
> But here's the question: *If I am legally self-employed with Uber while filing for unemployment, do I report my GROSS income from Uber, or my NET income after deducting expenses? *And would I deduct actual expenses, or the much larger standard mileage discount?
> 
> (My state's unemployment web site does an extremely poor job of addressing this, and the phone number is voice-prompt hell.)
> 
> I'm hoping for answers from somebody with real-world experience about this. I understand that each state might have different rules, but any information would be welcome.


----------------------------------------
I am not a CPA, I am no expert. But I am a driver, and finally I did find a concrete example relating to UI certification and which number to report. I think this is in terms of being SELF-EMPLOYED (as in Uber/Lyft). We are NOT employees. There is no employee id, no way to tell Unemployment that we are employed part time by this company even, as we are sole proprietors using their app and paying a commission to utilize it. AS self employed people, I believe its necessary for us (to NOT commit some kind of falsehood) to report the SAME thing we report to the Internal Revenue Service. Reporting anything BUT that seems to be an intrinsic falsehood if they are inconsistent. Taxable income is what we report to the IRS... After deductions/expenses. So for UI cert, two weeks at a time. So to do that we need a Profit Loss worksheet (advise you keep it handy if they call you for an interview), and keep track of total payments (after commission). That is, the net payments made to your bank account from Uber plus Lyft for those two weeks. And then the ACTUAL earnings would be that number, minus expenses. Expenses being IRS Standard mileage deduction (.54 cents per mile), healthcare premiums (if you are paying your own), supplies, a percentage of cell phone use for the business (car washes?, parking?).

"Another factor that may be important: When you report how much you make, you want to talk about profits,
not revenues."
"You report your income, not your sales," says Lancaster.

This link was at bankrate com. I guess I'm not qualified to post links, so F it... Find it somehow...
side business can hurt unemployment benefits 2 aspx


----------



## Rasheed

I am located in CA, and I have been doing some reading on my own because I will have to make a decision soon about whether to report my UBER earnings to UI or not. Some info: I am currently receiving Unemployment Insurance, and having a hard time getting a job, and so I applied for UBER and expecting to be driving soon. How to handle the UI claim is the concern here.
I read here "edd.ca.gov/uibdg/Total_and_Partial_Unemployment_TPU_5.htm" that if you are NOT making wages, you are considered Unemployed, even if you are an Independent Contractor or Self-employed. The cases that the EDD site discusses were all about Disability, but please press ctrl+F and serach for part or all of "While these three Supreme Court cases did not deal with the payment of unemployment insurance benefits", you'll see that the appeal board has extended the outcome of the cases to UI. Needless to say, it is actually allowed to report no income from any and all Self-employment or Independent contractor work in California with no penalty... or so I think. Please correct me if I am wrong! I don't wanna end up screwing my family and self up over a technical interpretation of the law.


----------



## Tucky

You will need to report wages made driving for Uber.

According on the California EDD website:

----------
*A. Self-Employment*
_The Superior Court of Los Angeles County considered the case of a self-employed individual in People v Nest. The claimant was self-employed in a clothing business and claiming unemployment insurance benefits as a unemployed individual. The court ruled that the claimant was unemployed, and stated:

"The word 'service' not being defined in the act, must be given its common meaning . . .' the occupation, condition, or status of a servant. - Performance of labor for the benefit of another, or at another's command; - hired helper; -duty done or required.' Certainly these definitions do not embrace the activities of the defendant in . . . the running of his own clothing establishment . . . He was not under 'any contract of hire' express or implied."

Section 1279 goes on to say:

"For the purposes of this section only 'wages' includes any and all compensation for personal services whether performed as an employee or as an independent contractor . . ."

Therefore, a self-employed individual, or independent contractor, is eligible under Section1279 in any week in which the wages payable to him or her are not XE.

This concept was considered by the Board in Benefit Decision 5903. The claimant was a licensed insurance broker. The claimant stated that he/she was self-employed as a broker, and that he received earnings from his/her insurance business. The Board ruled on the employment status of the claimant, and in holding that he/she was unemployed, stated:

"An individual who is self-employed may nevertheless be unemployed . . . However, if such an individual is in receipt of income for services performed in an independent business, such income constitutes 'wages' . . ."

The Board went on to reason that unless the wages are not XE, then the individual cannot be considered as unemployed within the definition of Section1279. Further, in the case under consideration, the wages payable to the claimant with respect to each of the weeks involved were not XE, and therefore the claimant was considered to have been unemployed.

An independent contractor is a person who is engaged in an independent employment or occupation, responsible to his/her principal only for the result and not for the manner or means by which it is accomplished._
----------

XE is excessive wages. California EDD will reduce your weekly benefit according to how much you made from Uber that week. For instance let's say your weekly benefit amount is $450 and you made $200 driving for Uber, your EDD money allowance for the week will be $250. This will also extend your EDD benefit out longer as the money remains in your EDD claim balance. If you make XE driving for Uber then no EDD wages will be paid for that week. The money you made driving for Uber that week does not spill over into other weeks.

Hope this helps.

-t


----------



## DrewTheShooter_Twitter

Tucky said:


> You will need to report wages made driving for Uber.
> 
> According on the California EDD website:
> 
> ----------
> *A. Self-Employment*
> _The Superior Court of Los Angeles County considered the case of a self-employed individual in People v Nest. The claimant was self-employed in a clothing business and claiming unemployment insurance benefits as a unemployed individual. The court ruled that the claimant was unemployed, and stated:
> 
> "The word 'service' not being defined in the act, must be given its common meaning . . .' the occupation, condition, or status of a servant. - Performance of labor for the benefit of another, or at another's command; - hired helper; -duty done or required.' Certainly these definitions do not embrace the activities of the defendant in . . . the running of his own clothing establishment . . . He was not under 'any contract of hire' express or implied."
> 
> Section 1279 goes on to say:
> 
> "For the purposes of this section only 'wages' includes any and all compensation for personal services whether performed as an employee or as an independent contractor . . ."
> 
> Therefore, a self-employed individual, or independent contractor, is eligible under Section1279 in any week in which the wages payable to him or her are not XE.
> 
> This concept was considered by the Board in Benefit Decision 5903. The claimant was a licensed insurance broker. The claimant stated that he/she was self-employed as a broker, and that he received earnings from his/her insurance business. The Board ruled on the employment status of the claimant, and in holding that he/she was unemployed, stated:
> 
> "An individual who is self-employed may nevertheless be unemployed . . . However, if such an individual is in receipt of income for services performed in an independent business, such income constitutes 'wages' . . ."
> 
> The Board went on to reason that unless the wages are not XE, then the individual cannot be considered as unemployed within the definition of Section1279. Further, in the case under consideration, the wages payable to the claimant with respect to each of the weeks involved were not XE, and therefore the claimant was considered to have been unemployed.
> 
> An independent contractor is a person who is engaged in an independent employment or occupation, responsible to his/her principal only for the result and not for the manner or means by which it is accomplished._
> ----------
> 
> XE is excessive wages. California EDD will reduce your weekly benefit according to how much you made from Uber that week. For instance let's say your weekly benefit amount is $450 and you made $200 driving for Uber, your EDD money allowance for the week will be $250. This will also extend your EDD benefit out longer as the money remains in your EDD claim balance. If you make XE driving for Uber then no EDD wages will be paid for that week. The money you made driving for Uber that week does not spill over into other weeks.
> 
> Hope this helps.
> 
> -t


I dugg this break down... as well as some others. Thanks all. The info on this thread in particular has pretty helpful.

Thanks all!!


----------



## Clutch Cargo

Does anyone have experience with filing for unemployment in Wisconsin while driving for Uber? I was working full time and doing a little Uber driving on the side and lost my full time job. When I filed for unemployment, I tried to list Uber under self-employment, but WI-Unemployment told me that Uber is considered an employer by the federal government which means I have to list my gross pay without deduction expenses. I don't think that's right based on the April court cases in California and NJ. Any ideas how I can get this turned around so I can get my unemployment based on my net Uber pay after expenses?


----------



## MajorTom

Clutch Cargo said:


> Does anyone have experience with filing for unemployment in Wisconsin while driving for Uber? I was working full time and doing a little Uber driving on the side and lost my full time job. When I filed for unemployment, I tried to list Uber under self-employment, but WI-Unemployment told me that Uber is considered an employer by the federal government which means I have to list my gross pay without deduction expenses. I don't think that's right based on the April court cases in California and NJ. Any ideas how I can get this turned around so I can get my unemployment based on my net Uber pay after expenses?


I find my self in the same boat andI would love to hear what happened as
I do understand your original question. 
Do tell-


----------



## Hugo00

*Hugo00New Member*
Hi, I found this forum and really very helpful, I am on the exactly same situation, been laid off 6 weeks ago, I just start reporting my gross 2 weeks ago, my weekly pay been reduce $50 dollars because on my case if I make less than $350 a week they reduce $50 on my unemployment check and if I make more Thant $350 basically they don't pay that week ( here on Virginia ). I know we have expenses, he is right and I just start thinking about that if I declare the gross or net. But, my other question is how UI know how much we make per week if Uber only report for the whole year earnings, I think so.
And also how I can report those 2 weeks I missed?


----------



## Uber SUCKS for drivers!

Hugo00 said:


> *Hugo00New Member*
> Hi, I found this forum and really very helpful, I am on the exactly same situation, been laid off 6 weeks ago, I just start reporting my gross 2 weeks ago, my weekly pay been reduce $50 dollars because on my case if I make less than $350 a week they reduce $50 on my unemployment check and if I make more Thant $350 basically they don't pay that week ( here on Virginia ). I know we have expenses, he is right and I just start thinking about that if I declare the gross or net. But, my other question is how UI know how much we make per week if Uber only report for the whole year earnings, I think so.
> And also how I can report those 2 weeks I missed?


Huh? I don't get what all the fuss is about. There is no reason to report anything, Uber is a net loss. You are not "working" you are not "earning" anything. You are just selling and eating your car one ride at a time. You are actually losing money (true net after all expenses, most deferred) There is nothing to file or report to unemployment agency or IRS!


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## Tim In Cleveland

Most drivers average 2 miles per 1 paid mile. That's $1.08 in expenses according to the IRS. Is your market paying more than that? If not, you didn't have a profit.


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## shiftydrake

You actually don't report profit you report gross earnings......that is how it works.....self employment keyword employment not self profit


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## Tim In Cleveland

shiftydrake said:


> You actually don't report profit you report gross earnings......that is how it works.....self employment keyword employment not self profit


That is just crazy. Consult a tax attorney. I think you can form an LLC TODAY, before the end of the year and claim all Uber income under that. Now your gross earnings are what you pay yourself and if that's nothing, that's all you would report. You WOULD NOT list Uber as employer. You would list your LLC.


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## shiftydrake

Ok I actually have a brother who is an attorney.....so anyway believe what you want but people will believe when UI comes knocking on the door or they get penalized for fraud ........but again supposedly I don't know anything


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## renbutler

Unemployment rules vary by state. What might be true in your state might not be true in another. 

Just keep that in mind. You all might be right for your own situation.


----------



## sicky

renbutler said:


> I was laid off in July, and I have been driving Uber for extra cash while also looking for a new job and collecting severance.
> 
> My last severance paycheck will be coming in a couple weeks, and then I will be eligible for unemployment (if, God forbid, I haven't landed full-time work by then).
> 
> I fully intend to comply by all legal rules while filing for unemployment, so I understand that I have to report all part-time and self-employment income each week that I file. I also understand that this would likely reduce my unemployment benefit.
> 
> But here's the question: *If I am legally self-employed with Uber while filing for unemployment, do I report my GROSS income from Uber, or my NET income after deducting expenses? *And would I deduct actual expenses, or the much larger standard mileage discount?
> 
> (My state's unemployment web site does an extremely poor job of addressing this, and the phone number is voice-prompt hell.)
> 
> I'm hoping for answers from somebody with real-world experience about this. I understand that each state might have different rules, but any information would be welcome.


I was doing this 1 year ago.

You need to report what Uber pays you each week and not deduct your expenses. You deduct your expenses on your tax returns at year end. Uber pays you after it takes its cut, so that's what you report.


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## cferrel

I would report net since its a business and you pay yourself the net.


----------



## I_Like_Spam

renbutler said:


> Thanks, but my issue isn't really about how to determine my net income. I know how to do that.
> 
> My only question is which number (gross/net taxable income/actual net) the unemployment bureau expects me to report.


I used to work for unemployment compensation, a number of years ago.

UC is a federal/state program, where the reporting standards and qualifications really vary.

In the 1980's, we had folks that had ongoing "side job" income that we deducted a set amount each week- steel workers for example doing regular shifts barbering. If someone took self employment while receiving unemployment, we'd just chuck them off benefits. The reporting requirements might vary where you are, and they might be different in PA even now.

Contact and examine the rules for unemployment comp in the state where you are.


----------



## Redtop

There is one thing you're missing. Many states prohibit you from collecting unemployment if you are self-employed. Uber is considered self-employment. Check that out.

That said, I'd be totally comfortable reporting income after expenses, using the IRS rate (which I think is 54.5 cents for 2016).

You can report your actual earnings each week and let the unemployment people figure out how much to pay you. Typically you have 52 weeks to collect your maximum allowance, which is 26 weeks times the maximum benefit. Let's say the max benefit is $400 but one week you make enough that you get paid only $300. The $100 will carry over. If you have a week that your benefit is only $1, the $399 will carry over. It's not an all-or-nothing deal each week.


----------



## 781623

Any interesting and sad thread. After 16 months, I am sure the thread originator has moved on. My take on the subject is this:

It is possible that in some States, drivers may be considered as employees of Uber. And, different reporting rules will apply. In most States, if not all States, the money that Uber deposits in our bank account should be considered as "business income" and not "personal income". The reporting rules are different. Business income minus associated business expenses = personal income. Thus, the $500 that Uber may deposit in ones bank account should not be considered as personal income.


----------



## omahagreg

781623 said:


> Any interesting and sad thread. After 16 months, I am sure the thread originator has moved on. My take on the subject is this:
> 
> It is possible that in some States, drivers may be considered as employees of Uber. And, different reporting rules will apply. In most States, if not all States, the money that Uber deposits in our bank account should be considered as "business income" and not "personal income". The reporting rules are different. Business income minus associated business expenses = personal income. Thus, the $500 that Uber may deposit in ones bank account should not be considered as personal income.


It should not, however in many states is. In my state the UI guidance clearly says that the gross earnings from self-employment is the amount to report. Sad but true.


----------



## Jay1111

Did you ever have any luck with this? I found out there site a link that states self employment income does not have to be reported in wisconsin. I can pm you the link if you would like.


----------



## Clutch Cargo

I tried to report the earnings as self-employment, but the WI unemployment people called me back and said that they do not classify Uber work as self-employment.


----------



## Jay1111

Clutch Cargo said:


> I tried to report the earnings as self-employment, but the WI unemployment people called me back and said that they do not classify Uber work as self-employment.


 If thats the case wouldnt uber be sending us W2s?


----------



## JamesHoldenPro

781623 said:


> In most States, if not all States, the money that Uber deposits in our bank account should be considered as "business income" and not "personal income". The reporting rules are different. Business income minus associated business expenses = personal income. Thus, the $500 that Uber may deposit in ones bank account should not be considered as personal income.


This is how I file my taxes. I consider Uber and other independent contractor (1099-misc / k) as a business, deduct my expenses, then the rest is personal income. So yes, I don't believe UI needs to know about my Uber income, since I plan on reducing it to zero come next April (never take the standard deduction - you can always itemize higher when deducting business expenses). So does anyone have experience with this?

I'm just in between jobs / gigs and thinking I could drive for Uber to make some extra cash, but if it's going to reduce my UI benefits - why would I?


----------



## I_Like_Spam

JamesHoldenPro said:


> I don't believe UI needs to know about my Uber income, since I plan on reducing it to zero come next April (never take the standard deduction - you can always itemize higher when deducting business expenses). So does anyone have experience with this?


The way that the UI office might look at it a little differently than you do. Just consider a few facts.

They ask you if you worked last week. If you uber'ed- that's work. Its untrue if you answer "no" and avoid the followup questions.

They ask you if you are available for work last week- if you're ubering are you really available to go out for a job as a test subject at a medical lab (that was the job the Unemployment office sent me out on- last time I was on UC in 1984. -true story) If you answer "yes", they can say that is untrue.

Third, the rules for counting earned income may be different for Unemployment than they do for taxes, they certainly did when I worked UI here in PA.

Lastly, the unemployment office probably gets computer reports from Uber, reporting who is starting. The child support court certainly does, this will be something to explain, perhaps.

Do what you want, but just realize that your arguments are going to be lined up with UI Regulations in California by a bureaucrat. It might turn out fine, but there is definitely a risk here.


----------



## thisguy777

renbutler said:


> I was laid off in July, and I have been driving Uber for extra cash while also looking for a new job and collecting severance.
> 
> My last severance paycheck will be coming in a couple weeks, and then I will be eligible for unemployment (if, God forbid, I haven't landed full-time work by then).
> 
> I fully intend to comply by all legal rules while filing for unemployment, so I understand that I have to report all part-time and self-employment income each week that I file. I also understand that this would likely reduce my unemployment benefit.
> 
> But here's the question: *If I am legally self-employed with Uber while filing for unemployment, do I report my GROSS income from Uber, or my NET income after deducting expenses? *And would I deduct actual expenses, or the much larger standard mileage discount?
> 
> (My state's unemployment web site does an extremely poor job of addressing this, and the phone number is voice-prompt hell.)
> 
> I'm hoping for answers from somebody with real-world experience about this. I understand that each state might have different rules, but any information would be welcome.


HEY i know its late but this helped me 1000x more understanding the report earning process you DO report net pay i just saw the EDD UI you tube channel this can help anyone else in a similar situation who drives uber or lyft

click the youtube link: 




watch it at about 9 mins YOUR WELCOME!!!


----------



## Tip service

renbutler said:


> I was laid off in July, and I have been driving Uber for extra cash while also looking for a new job and collecting severance.
> 
> My last severance paycheck will be coming in a couple weeks, and then I will be eligible for unemployment (if, God forbid, I haven't landed full-time work by then).
> 
> I fully intend to comply by all legal rules while filing for unemployment, so I understand that I have to report all part-time and self-employment income each week that I file. I also understand that this would likely reduce my unemployment benefit.
> 
> But here's the question: *If I am legally self-employed with Uber while filing for unemployment, do I report my GROSS income from Uber, or my NET income after deducting expenses? *And would I deduct actual expenses, or the much larger standard mileage discount?
> 
> (My state's unemployment web site does an extremely poor job of addressing this, and the phone number is voice-prompt hell.)
> 
> I'm hoping for answers from somebody with real-world experience about this. I understand that each state might have different rules, but any information would be welcome.


----------



## EMP40

The Ca EDD video clearly shows you report NET earnings as defined by IRS rules.


----------



## Mars Troll Number 4

Umm, Independent contractor income becomes a mess in the courts....

The biggest issue is that the income being reported for you, is greatly in excess of your actual profit... which means all these government agencies will assume that you are making more money than you are, because they just don't know any better.

if unemployment sees $1000 a week of uber revenue as $1000 a week in income your in trouble...

I've known people who were un rightfully denied things like foods tamps over their taxi Revenue being counted as income.

i really don't want to comment on it but...
But anything involving a government agency (except the IRS) is a mess, and will be a fight.

Child support in particular is a nasty one,

I knew a cab driver who got a court order for child support/allamony on him.

It was 50% of his revenue... (a court order for the cab company to turn over _50% of his meter_ to the court, to give to her)

Well his profit Margin was only 60% so... you see the problem?

$250 in revenue
$100 in expenses {paid to the cab company} (that the judge ignored and refused to factor in)
$125 to his exwife (50% Court ordered to be deducted off his credit card payouts)
$25 to him (10%)

His Ex-wife told the judge that he didn't make as much as the number the judge threw out, the judges response was that he was obviously was hiding money from her...

2 weeks later, (of bumming money from his ex wife, i kid you not)
An agreement was reached to fax shift receipts (the cab company prints up a nice receipt showing expenses and revenue) to his Ex-wife and pay X % of his taxable profit. (in cash when he went to pick up his children for the weekend (actually monday-wednesday)

Anything where your writing off a HUGE % of your income as expenses will cause a problem with these institutions... the IRS will take your word for it, most other's fail to understand what's going on.

Also you have situations like orlando where you are losing money on paper?

I'd love to be in family court figuring that out...


----------



## Darrell Green Fan

ginseng41 said:


> When I applied for unemployment they told me I had to use gross income. I used the after uber fees part but I went through hell with this. It may vary state by state, but in Virginia, that's what I was told


I know this is an old post but can you elaborate? I don't see how anyone can say your gross should be the income before the Uber cut. No your gross should be what you earned before deductions.

As a follow up let's say you collect for 6 months starting in January. How does the unemployment office know that your earnings took place during that time? Isn't it reported at the end of the year and that income could be claimed as income from June-December by the driver.


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## ginseng41

If you're receiving unemployment or disability in virVirgi you have to fill out information far more frequently. For unemployment it's weekly and I think monthly for disability but don't quote me on that. You also have to use gross earnings for disability payments here. Idkwhy it's like this but I made a ton of calls to figure this our when I first started driving. Another driver told me the disability stuff so I only know it second hand


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## I_Like_Spam

Darrell Green Fan said:


> As a follow up let's say you collect for 6 months starting in January. How does the unemployment office know that your earnings took place during that time? Isn't it reported at the end of the year and that income could be claimed as income from June-December by the driver.


Employers subject to the unemployment compensation law are required to report weekly wages. Not yearly.

Unemployment eligibility is determined by the number of weeks worked and eligibility is determined on a week to week basis.


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## Darrell Green Fan

ginseng41 said:


> If you're receiving unemployment or disability in virVirgi you have to fill out information far more frequently. For unemployment it's weekly and I think monthly for disability but don't quote me on that. You also have to use gross earnings for disability payments here. Idkwhy it's like this but I made a ton of calls to figure this our when I first started driving. Another driver told me the disability stuff so I only know it second hand


Ah makes sense, thanks. So if you fail to report earning for that week you are committing fraud.


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## ginseng41

In Virginia, at least. Can't speak for other states


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## Escoman

renbutler said:


> I was laid off in July, and I have been driving Uber for extra cash while also looking for a new job and collecting severance.
> 
> My last severance paycheck will be coming in a couple weeks, and then I will be eligible for unemployment (if, God forbid, I haven't landed full-time work by then).
> 
> I fully intend to comply by all legal rules while filing for unemployment, so I understand that I have to report all part-time and self-employment income each week that I file. I also understand that this would likely reduce my unemployment benefit.
> 
> But here's the question: *If I am legally self-employed with Uber while filing for unemployment, do I report my GROSS income from Uber, or my NET income after deducting expenses? *And would I deduct actual expenses, or the much larger standard mileage discount?
> 
> (My state's unemployment web site does an extremely poor job of addressing this, and the phone number is voice-prompt hell.)
> 
> I'm hoping for answers from somebody with real-world experience about this. I understand that each state might have different rules, but any information would be welcome.


The state sends you a form every 2 weeks you have to file it by mail if reporting income. You have 2 choices state will automatically give you 40 % expenses or you can provide actual receipts . You will have to supply your weekly earnings statement. State does not give the federal .58 mile.


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## Escoman

Escoman said:


> The state sends you a form every 2 weeks you have to file it by mail if reporting income. You have 2 choices state will automatically give you 40 % expenses or you can provide actual receipts . You will have to supply your weekly earnings statement. State does not give the federal .58 mile.


If you earn any income paid or not you have to paper file.


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## LADryver

Escoman said:


> If you earn any income paid or not you have to paper file.


Depends on the state, paper or online. Every state has a different system.


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## Escoman

LADryver said:


> Depends on the state, paper or online. Every state has a different system.


Well Darn I thought San Diego was in California.


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## I_Like_Spam

Escoman said:


> Well Darn I thought San Diego was in California.


That was my understanding as well. However, sometimes, when people have worked in different states during the past year, they can file with a different state than they are living in now.


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## LADryver

Escoman said:


> Well Darn I thought San Diego was in California.


No they succeeded last Wednesday.


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## Stevie The magic Unicorn

LADryver said:


> No they succeeded last Wednesday.


good for Sam Diego.


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## Bethh55

I need to report some income to unemployment. They ask alot of questions about Uber such as address, name of contact, phone number etc. What a pain in the ass. Does anyone know all of this information?


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## Escoman

You use the corporate HQ in.San.Francisco


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