# Taxation of the tip



## BSki (Aug 3, 2017)

Talking with a pax last night about Uber/Lyft who does what, who takes what etc.

She asked "But you get to keep your tips in Uber right" I said we do, but with Uber, when tipped in the App, we get taxed on it. Lyft doesn't tax the tips (as far as I have read)

At the end of the ride she said "I was going to tip you in the app, but now I know better" and handed me a $5 on a minimum ride.

As far as what I know I shared actual facts.


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## steveK2016 (Jul 31, 2016)

Lyft isn't taxing nor not-taxing your tips. The Federal Government is taxing your tips and you are as much obligated to claim your tips on yojr income whether you received the tips electronically or by cash. 

Now whether you do or your dont is up to you to decide.


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## BSki (Aug 3, 2017)

steveK2016 said:


> Lyft isn't taxing nor not-taxing your tips. The Federal Government is taxing your tips and you are as much obligated to claim your tips on yojr income whether you received the tips electronically or by cash.
> 
> Now whether you do or your dont is up to you to decide.


Thought I read somewhere that Lyft does not include the tips on the 1099 whereas Uber will.


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## steveK2016 (Jul 31, 2016)

BSki said:


> Thought I read somewhere that Lyft does not include the tips on the 1099 whereas Uber will.


Reporting tips is different then taxing you. Whether or not its on your 1099, you are still obgligated by law to report it yourself so technically it shouldnt matter, right?


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## I_Like_Spam (May 10, 2015)

BSki said:


> Thought I read somewhere that Lyft does not include the tips on the 1099 whereas Uber will.


Just because something isn't on a 1099, doesn't mean that it isn't taxable.

None of my income driving yellow cab was reported to IRS on a 1099, yet it was still quite taxable.


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## PTUber (Sep 16, 2015)

Oh I'm sure there are a lot of drivers that claim their cash tips with the IRS...well maybe not!


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## Mars Troll Number 4 (Oct 30, 2015)

PTUber said:


> Oh I'm sure there are a lot of drivers that claim their cash tips with the IRS...well maybe not!


The taxi drivers have slowly been shifting to reporting all their revenue over the last 10 years or so...as cash fares slowly dwindle away...


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## Tihstae (Jan 31, 2017)

Mears Troll Number 4 said:


> The taxi drivers have slowly been shifting to reporting all their revenue over the last 10 years or so...as cash fares slowly dwindle away...


Wait, are you saying that taxi drivers were NOT reporting some/all income before when it was all cash? I just can't believe that there is a dishonest taxi driver. This just can't be true!


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## Mars Troll Number 4 (Oct 30, 2015)

Tihstae said:


> Wait, are you saying that taxi drivers were NOT reporting some/all income before when it was all cash? I just can't believe that there is a dishonest taxi driver. This just can't be true!


I could easily shave $50 A SHIFT off my revenue reporting as it is, back in the day you could hide all of it, with how loose the reporting requirements where.


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