# Does IRS infer Tip income for Uber drivers?



## David Pickett (Nov 2, 2015)

Waiters get most of their income from tips, and the IRS expects a certain amount to be reported for each hour worked at their dismally low hourly wage.

Does anyone have any IRS experience with this expectation and Uber driving. Of course we only accept tips if the rider absolutely insists, but it happens. I am wondering if I should report some of it to keep the IRS off my back! However, I make so little in tips, being faithful at refusing unless they absolutely insist and not getting that many rides per day, that there is no profit for the IRS to audit me over that. Has anyone been dinged by the IRS over tips?


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## forqalso (Jun 1, 2015)

We are supposed to claim unreported tip income. Will you get audited for not claim in any of the few tips you get? I wouldn't worry, Über has made it clear tips aren't necessary, if we received tips like the cabbies get, I would report it.


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## Amsoil Uber Connect (Jan 14, 2015)

Why report something that the service has no record of ? Only report what is on the 1099.

This is where Uber shots themselves in the foot because of no tip function. However, not likely the service would give Uber a benefit if they did.

If the service were smart they would require Uber having it. Why? Because it becomes unreported income without the tip function.

However, my argument still stands. Define income ?


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## joeactuary (Oct 8, 2015)

haha. Funny Thread! As if we get any tips through Uber! Hahaha

Seriously, don't report your $4 in tips. Everyone knows the tip is included in the Uber fare.


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## mandreyka (Sep 25, 2015)

We dont get tips, uber says so in its app. So you have never recieved a tip as far as uncle Sam is concerned ; )


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## UberPissed (Aug 13, 2014)

Amsoil Uber Connect said:


> Why report something that the service has no record of ? Only report what is on the 1099.


This is outright tax fraud - without getting into any laughable argument from a tax protester - you SHOULD report tip income.

You SHOULD NOT advise people to commit tax fraud in an open forum.

My two cents (report that as income too).


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## Amsoil Uber Connect (Jan 14, 2015)

Your only pissed cause I learned the rules in how to play the game and your all jelly over it. The same information is available to you, but do you choose to believe in the lies ? or read for yourself in what the law actually says ?

Well when you can show what section in the Title 26 Regulations that defines income, then you can call me a fraud all you want.

After all, taxpro should be able to point to the section, right?


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## joeactuary (Oct 8, 2015)

Amsoil Uber Connect said:


> Your only pissed cause I learned the rules in how to play the game and your all jelly over it. The same information is available to you, but do you choose to believe in the lies ? or read for yourself in what the law actually says ?
> 
> Well when you can show what section in the Title 26 Regulations that defines income, then you can call me a fraud all you want.
> 
> After all, taxpro should be able to point to the section, right?


Uberpissed is absolutely correct. Tips (and all income) must be reported to the IRS. Just because you don't get a paper form showing the income doesn't mean you don't have to report it. For example, if you get less than $10 in interest from your checking account, your bank is not required to generate a 1099, but you are still required to report it to the IRS. If you deal drugs or you are a professional bank robber, you are required to report the income to the IRS. If not, you are subject to tax evasion and fraud.

In answer to the OP's question, No, the IRS will not infer tips from Uber income. Since uber Pax never tip, there is nothing to report anyway!


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## UberPissed (Aug 13, 2014)

joeactuary - good explanation. Some people will believe what they want to believe though.

Amsoil Uber Connect - I actually read IRC 61, which defines "gross income" - "all income from whatever source derived, including (but not limited to) the following items" (and goes on to list a series of items, including income derived from business, compensation for services, etc. I'm not in the market to make personal attacks on the forum, but this is just wrong - that's all there is to it.

It seems like the rationale is really that you can get away with it, so why not? I guess this type of moral turpitude is what made the country though. While you are at it, when you go to church, drop a dollar in the basket, and pull out a $20. They probably will never find out, so what's the harm? Besides, you are owed this, right?


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## UberTaxPro (Oct 3, 2014)

The US tax code operates on a system of voluntary compliance. Until you don't volunteer!


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## UberTaxPro (Oct 3, 2014)

*26 U.S. Code § 61 - Gross income defined*

(a)General definition Except as otherwise provided in this subtitle, gross income means all income from whatever source derived, including (but not limited to) the following items:
(1)
Compensation for services, including fees, commissions, fringe benefits, and similar items;
(2)
Gross income derived from business;
(3)
Gains derived from dealings in property;
(4)
Interest;
(5)
Rents;
(6)
Royalties;
(7)
Dividends;
(8)
Alimony and separate maintenance payments;
(9)
Annuities;
(10)
Income from life insurance and endowment contracts;
(11)
Pensions;
(12)
Income from discharge of indebtedness;
(13)
Distributive share of partnership gross income;
(14)
Income in respect of a decedent; and
(15)
Income from an interest in an estate or trust.


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## David Pickett (Nov 2, 2015)

Reporting a little avoids begging the question of where is the tip income. And for me, it is really little, probably not enough to more me to a different $50 line on the tax chart.


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## BigSlick (Apr 15, 2015)

From irs.gov (and yes, I know we aren't "employees" but the point still stands. Claim whatever you received)

*Topic 761 - Tips - Withholding and Reporting*

Employees who receive cash tips of $20 or more in a calendar month while working for you, are required to report to you the total amount of tips they receive. The employees must give you written reports by the tenth of the following month. Employees who receive tips of less than $20 in a calendar month are not required to report their tips to you but must report these amounts as income on their tax returns and pay taxes, if any.


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## Fuzzyelvis (Dec 7, 2014)

David Pickett said:


> Waiters get most of their income from tips, and the IRS expects a certain amount to be reported for each hour worked at their dismally low hourly wage.
> 
> Does anyone have any IRS experience with this expectation and Uber driving. Of course we only accept tips if the rider absolutely insists, but it happens. I am wondering if I should report some of it to keep the IRS off my back! However, I make so little in tips, being faithful at refusing unless they absolutely insist and not getting that many rides per day, that there is no profit for the IRS to audit me over that. Has anyone been dinged by the IRS over tips?


Why in the HELL are you refusing tips? Just say thank you.

Sigh.


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## UberPissed (Aug 13, 2014)

BigSlick said:


> From irs.gov (and yes, I know we aren't "employees" but the point still stands. Claim whatever you received)
> 
> *Topic 761 - Tips - Withholding and Reporting*
> 
> Employees who receive cash tips of $20 or more in a calendar month while working for you, are required to report to you the total amount of tips they receive. The employees must give you written reports by the tenth of the following month. Employees who receive tips of less than $20 in a calendar month are not required to report their tips to you but must report these amounts as income on their tax returns and pay taxes, if any.


Good info, but we're not an employee, and uber isn't our employer.


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## scrurbscrud (Sep 11, 2014)

I refuse tips on Uber. wink wink.

Prove it. Whatever paltry sums may have been offered wasn't worth taking or counting anyway.


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## UberPissed (Aug 13, 2014)

I agree with the last sentence...

Although, the burden of proof is on the taxpayer in tax proceedings. So indeed... prove it (or that "it" didn't happen).


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## scrurbscrud (Sep 11, 2014)

UberPissed said:


> I agree with the last sentence...
> 
> Although, the burden of proof is on the taxpayer in tax proceedings. So indeed... prove it (or that "it" didn't happen).


It's easy to prove. Uber directs the customers to not tip. They don't.


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## There’s no need to tip (Dec 19, 2015)

I keep track of every driver I tip and then report it to the IRS..... Be careful, you never know who is in your car. They could be working for the tax man!


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