# 1099-NEC - Not enough information to figure how much I owe?



## VanKalDriver (Sep 13, 2021)

I'm trying to file a 1099 for the first time with just Uber Eats.

I looked at the 1099-NEC just a few days ago kind of like a procrastinating college student, and found that there is no worksheet whatsoever that takes the taxable income and figures the tax! The 1040 at least had me actually figure my own tax (or refund, depending on withholding) and either pay it or claim the refund. But there seems to be _nothing_ other than the income information here. I'm taking the standard 57.5 cent per mile deduction since my car is worth so little and therefore there is very little depreciation on my car.

I've read something about less than $20,000 income (which I'm at) not being reported to the IRS for 2021, but it would be for 2022 with the minimum dropping to $600 - but also that it may apply to _passenger rides only _(unclear where I read that.) So if the IRS doesn't even know about any of my UE income, why bother doing my taxes _at all_ and just tipping off the IRS to the income, paying unnecessarily when I don't make a whole lot to begin with?

Is there some other form I need to figure the actual tax, or are there other pages I'm missing on this one? Uber did send me a 1099 but it's missing the information I mentioned. Uber's earnings report gives gross earnings, net earnings (what I actually got paid to my bank account) and online miles, but it doesn't say which is federal and which is state withholding! I'm in Michigan, for that information if you want to help me out on state.


----------



## TobyD (Mar 14, 2021)

You need an accountant. You’re in way over your head. I could answer your questions, but I’m afraid the answers will only confuse you (no offense, taxes are confusing). At this point, your best option is to file for an extension, and take all your papers to an accountant.


----------



## UberChiefPIT (Apr 13, 2020)

TobyD said:


> You need an accountant. You’re in way over your head. I could answer your questions, but I’m afraid the answers will only confuse you (no offense, taxes are confusing). At this point, your best option is to file for an extension, and take all your papers to an accountant.


Agree. If you’re not familiar, an accountant will help you figure it out.

Doing this kind of work means you need to keep track of two simple numbers: how many miles you put on your vehicle while doing the job, and your gross receipts for doing it.

Unless you’ve become a millionaire from doing it (which nobody does), you won’t owe anything so long as you know those two numbers and what the IRS considers calculable towards them.


----------



## VanKalDriver (Sep 13, 2021)

At this point, having made less than $10,000 in fact, I can never in a million years afford an accountant. My best bet at this point is probably just not to even bother and see if the IRS contacts me saying I owe X amount of money. The worst realistic scenario is that they try to claim it's for zero online miles, in which case I'll send Uber's report of the online miles. Seriously, an _accountant_ for a simple delivery gig??? How much is that??? $500??? $1,000?????? More???!?!?!?!?!?!?!?!?!?!?!?!?!?! $200 might as well be a million to me.

Similarly, if I ever need a lawyer, I have absolutely no money at all for one. I'm barely making ends meet here with the pay I get with UE.


----------



## BrainDead Driver (Dec 15, 2021)

Nothing like waiting for the last minute . My sister does that as well and gets screwed over a lot .


----------



## VanKalDriver (Sep 13, 2021)

Or I could just never have the IRS even contact me since the tax is too little for them to practically bother, with bigger fish to fry than what little I might owe out of my something like $8,000 gross income.


----------



## TobyD (Mar 14, 2021)

Go to HR block, prolly won’t cost you more than a $100. If you don’t file, you run the risk of the irs filing for you. You’re right, the tax on 10,000 is likely zero. But if it’s anything more than that, the penalties and interest for not filing could reach into the thousands. Today’s your last chances. File for an extension. You don’t want to start your adult life with irs bills, they’re way worse than student loans, trust me.


----------



## VanKalDriver (Sep 13, 2021)

_*Even $100 might as well be billions of dollars to me.*_

Think $100 is nothing to me??? And then practically H&R Block will come in at about $500, with possibly otherwise unreported income coming to the IRS, just creating more work and more pay for me when it doesn't have to be such.

As of this moment, I make roughly $50 per day, five days per week, with Uber Eats so I only have a grand total of $250 to work with per week. Think this is enough for me to actually afford an ACCOUNTANT??? Which would be as expensive as a LAWYER?!?!?!?!?!?!?!?!

*Or I could just never tip off the IRS at all, and ultimately avoid all this trouble.

I. AM. NOT. FILING. There is no hope of me actually doing this legitimately since I have NO MONEY FOR AN ACCOUNTANT. <$10,000, from this, should generate zero tax bill anyway.*

And most of all:

*WHY AM I NOT GETTING THIS TAX MATH INFORMATION MYSELF LIKE WITH THE 1040 INSTEAD OF HAVING TO HIRE A GODDAMN ACCOUNTANT???????*


----------



## FLKeys (Dec 27, 2018)

VanKalDriver said:


> _*Even $100 might as well be billions of dollars to me.*_
> 
> Think $100 is nothing to me??? And then practically H&R Block will come in at about $500, with possibly otherwise unreported income coming to the IRS, just creating more work and more pay for me when it doesn't have to be such.
> 
> ...


You don't need an accountant, you just need basic understanding of what being self employed means.

The entire amount a PAX pays for the ride is your sales, not Ubers.
The fee Uber keeps is an expense you can deduct.
Your mileage is an expense you can deduct. There are other, lets keep it simple for now.

Example: Lets say you only did one ride for Uber

You drove 1 mile to get to pick-up
Rider pays Uber $8.12 to go 5 miles.
Uber sends you $5.84 for this ride, includes a promotion.
You drive 3 miles to home with the app on, however you don't get another ride.
Uber pays you a promotion of $1.00 for this ride
Gross Sales: $8.12 - Amount rider paid - Reported on 1099K
Uber Fees: $3.28 - Amount Uber kept - Reported on Uber Summary
Uber Promotion: $1.00 - Bonus - Reported on 1099NEC
Mileage Deduction: $5.04 - From your mileage log or if you did not keep one the summary.

Reported on your Schedule C:
$9.12 Gross receipts - 1099K and 1099NEC $8.12 from Rider $1.00 from Uber
$5.04 Vehicle Expense
$3.28 Fees

Net Profit on Schedule C- $0.80

Now just use your total numbers in place of this one ride and you are golden. CashApp has a free tax version where you just plug in your numbers and it fills the forms out for you.


----------



## TobyD (Mar 14, 2021)

Ok. Good luck to you.


----------



## Seamus (Jun 21, 2018)

VanKalDriver said:


> WHY AM I NOT GETTING THIS TAX MATH INFORMATION MYSELF LIKE WITH THE 1040 INSTEAD OF HAVING TO HIRE A GODDAMN *ACCOUNTANT???????*


In addition to your 1040 which you said you are already familiar with, all you need is to fill out a schedule C to go along with it. Print out a copy of the schedule C and it’s instructions sheet. Familiarize yourself with the schedule C and read the instructions and this will all start to make more sense to you.

You still have time, because the 15th falls on Good Friday you have until Monday the 18th to file.


----------



## VanKalDriver (Sep 13, 2021)

This still leaves one critical question:

*Schedule C of what form? If it’s not 1099 or 1040, then what?*


----------



## TobyD (Mar 14, 2021)

And that’s why I said you need help


----------



## Seamus (Jun 21, 2018)

VanKalDriver said:


> This still leaves one critical question:
> 
> *Schedule C of what form? If it’s not 1099 or 1040, then what?*


Schedule C goes with 1040. Google Form 1040 Schedule C


----------

