# U/L Tax Question...



## Ian Hobbs (Sep 19, 2018)

So I drive for both U+L. I am in a situation where I made more than $600 for uber and less than $600 for Lyft so I dont have to report my Lyft earnings. However, my mileage log is combined. What I am thinking of doing to get a roundabout mileage number to report for uber is prorate the total miles based on trips. For example: if I did 150 trips for uber and 50 trips for lyft, I would prorate my total miles by 75% and that would be my total miles driven for uber. Does this seem like a good way to do it or does anyone have a better way?


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## islanddriver (Apr 6, 2018)

Check you pay statement s for online milage


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## Ian Hobbs (Sep 19, 2018)

islanddriver said:


> Check you pay statement s for online milage


Online mileage isn't actual mileage


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## Uber's Guber (Oct 22, 2017)

Uber gives you a record of your miles driven while logged on to the app. I don't remember if Lyft provides a record of millage.


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## Older Chauffeur (Oct 16, 2014)

Ian Hobbs said:


> So I drive for both U+L. I am in a situation where I made more than $600 for uber and less than $600 for Lyft so I dont have to report my Lyft earnings. However, my mileage log is combined. What I am thinking of doing to get a roundabout mileage number to report for uber is prorate the total miles based on trips. For example: if I did 150 trips for uber and 50 trips for lyft, I would prorate my total miles by 75% and that would be my total miles driven for uber. Does this seem like a good way to do it or does anyone have a better way?


You are mistaken re reporting your Lyft income- per IRS rules you are required to report all income, regardless of whether you are issued a 1099. Plus, if I understand correctly, neither company issues a 1099misc (the one with the $600 reporting threshold) unless you have that amount or more for bonuses/incentives, etc. The pax paid earnings on credit cards are a separate item, with a $20,000 threshold. If you report all your earnings on Schedule C, from both companies, the total mileage should reduce your profit significantly without the need to manipulate the mileage figures.

Disclaimer: I'm not a tax professional.


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## Ian Hobbs (Sep 19, 2018)

Older Chauffeur said:


> You are mistaken re reporting your Lyft income- per IRS rules you are required to report all income, regardless of whether you are issued a 1099. Plus, if I understand correctly, neither company issues a 1099misc (the one with the $600 reporting threshold) unless you have that amount or more for bonuses/incentives, etc. The pax paid earnings on credit cards are a separate item, with a $20,000 threshold. If you report all your earnings on Schedule C, from both companies, the total mileage should reduce your profit significantly without the need to manipulate the mileage figures.
> 
> Disclaimer: I'm not a tax professional.


Well that is helpful! I thought I have read somewhere that if it's under $600 you dont have to report it. But I just looked for it again and it actually says if its under $600, IRS doesn't require Uber to send you a 1099misc (20,000 for 1099K). So I guess I will see if Lyft even sends one to me.


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## mmn (Oct 23, 2015)

It's total business income you're taxed on. And it's combined mileage that's deductible. Doesn't matter if it's from one or more sources.

Not a tax pro, so that's just mho...


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## SamuelB (Aug 29, 2018)

"When determining whether you need to file a return, you don't include tax-exempt income. In 2018 for example, if you are under age 65 and single, you must file a tax return if you earn *$12,000* or more, which is the 2018 standard deduction for a single taxpayer." So if your gross income from all sources is over $12,000 then you do have to file a return and then you have to report income from all sources regardless of how small. Even though Lyft or any company that you made money through doesn't have to issue a 1099 you still have to report the income.
https://turbotax.intuit.com/tax-tip...e-need-to-file-an-income-tax-return/L7pluHkoW


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## oldfart (Dec 22, 2017)

Ian Hobbs said:


> Well that is helpful! I thought I have read somewhere that if it's under $600 you dont have to report it. But I just looked for it again and it actually says if its under $600, IRS doesn't require Uber to send you a 1099misc (20,000 for 1099K). So I guess I will see if Lyft even sends one to me.


I believe that that $600 rule applies to employers,

If you pay your gardener, or housekeeper less than $600 you dont have to report it (on a 1099

If you are the housekeeper, its income and you report it


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## peteyvavs (Nov 18, 2015)

Taxes, report, are you crazy.


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## Butter3031 (Oct 13, 2018)

Uber's Guber said:


> Uber gives you a record of your miles driven while logged on to the app. I don't remember if Lyft provides a record of millage.


So all miles including to the location? Not just on ride miles? 
I now feel like a video I seen...you mean all my kohl's cash....yes I mean all...blah


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## mattadams (Apr 19, 2016)

I just got done entering my info into turbotax, here's how I handled it, because I also have a combined mileage log. I reported the miles against my uber portion of the taxes, but not against lyft. Double-deducting would be a problem. Of course it's only a problem if you actually get audited.
In my case, the miles report on the lyft and uber form were actually higher than my actual logged miles for the year, because I often have both apps on at the same time. I decided to play it safe and only enter my ACTUAL miles, because that's what I felt I could actually justify if I were to get audited.
My wife and I have a combined salary of into the 6 digits (but not by much) of which uber/lyft only made up about $2500 last year... but to me it isn't worth the risk of getting audited over a relatively small difference.


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## SamuelB (Aug 29, 2018)

mattadams said:


> I just got done entering my info into turbotax, here's how I handled it, because I also have a combined mileage log. I reported the miles against my uber portion of the taxes, but not against lyft. Double-deducting would be a problem. Of course it's only a problem if you actually get audited.
> In my case, the miles report on the lyft and uber form were actually higher than my actual logged miles for the year, because I often have both apps on at the same time. I decided to play it safe and only enter my ACTUAL miles, because that's what I felt I could actually justify if I were to get audited.
> My wife and I have a combined salary of into the 6 digits (but not by much) of which uber/lyft only made up about $2500 last year... but to me it isn't worth the risk of getting audited over a relatively small difference.


What do you mean "Uber portion of taxes?" All of your income from your rideshare/driving business is combined and goes on one schedule C. All of your deductions are combined and taken against your combined gross business earnings.
As far as mileage you should have a log of your actual mileage. It doesn't matter if you are running both apps. If you drive 1 mile with both apps on, that is 1 mile that is taken against your total gross earnings.


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## mattadams (Apr 19, 2016)

Turbotax asks for details related to any businesses... I consider uber and lyft to be two seperate businesses, but turbotax ends up adding them into the same schedule C. i could probably just call it rideshare and add them all together myself, probably 6 of one, half a dozen of the other... I'd think, anyway... maybe I'm wrong. Maybe it's better to combine them all. 
And yes, mileage matches my understanding. Uber and lyft mileage totals equalled around 3,000 but in actually it was aorund 2,200... so I reported, 2,200 (again I'm not an tax attorney or accountant, so just figuring out ways that make sense to me)


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## Older Chauffeur (Oct 16, 2014)

mattadams said:


> Turbotax asks for details related to any businesses... I consider uber and lyft to be two seperate businesses, but turbotax ends up adding them into the same schedule C. i could probably just call it rideshare and add them all together myself, probably 6 of one, half a dozen of the other... I'd think, anyway... maybe I'm wrong. Maybe it's better to combine them all.
> And yes, mileage matches my understanding. Uber and lyft mileage totals equalled around 3,000 but in actually it was aorund 2,200... so I reported, 2,200 (again I'm not an tax attorney or accountant, so just figuring out ways that make sense to me)


TurboTax is correct- as an independent contractor you list all entities for which you provide the same service on one Schedule C. 
Does your "actual miles" include dead miles, supported by a log you have kept? Dead miles can bring your ride share net profit down to where you owe very little, if any tax, as reported by many members here.
Is the $2500 your gross or net after deducting U/L fees and mileage?


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## mattadams (Apr 19, 2016)

I always keep a log of the odometer when I leave the house and when I get back and keep it in a spreadsheet, whether I'm doing uber or lyft. That's where I'd come up with the 2200. I figure that covers dead-heading, etc.
I believe the ~2500 (might have been less, now that I think about it) was before any of their fees. Through turbotax then I list out the fees and they are deducted from the income. Doing it the way I had, uber actually shows a net loss and lyft shows a net gain (since I'm deducting things from uber but not lyft). maybe I should go back and do it as one combined just so it looks less weird.


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## Older Chauffeur (Oct 16, 2014)

If you did choose to treat Uber and Lyft ride sharing as different businesses, on separate Schedule Cs, then you would have to list separate expenses and mileage. It would be a hassle, which is why you need to combine them. I’m surprised TT didn’t question you about your ride share reporting, since I believe they ask about the kind of work you do. OTOH, if you did completely unrelated work, also as an independent contractor, say tutoring students, then you would need a separate Schedule C.

I’ve used TT for years, and my advice is don’t overthink it; just answer their questions.

Disclaimer: I’m not a tax professional.


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## SamuelB (Aug 29, 2018)

You have 1 business: Rideshare. You have 2 clients you do business with, Lyft and Uber. It all goes into 1 pot/1 schedule C. You would also include Doirdash/Postmates/Amazon if you did any of those. If you had another business, say window cleaning, that would be a different business and would need a separate schedule C.


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