# LYFT 1099K/Misc does not match



## mikeslemonade (Jun 25, 2016)

So I'm using turbo tax and it tells me to use box 7 in 1099-misc which is only $2,214. My gross in 1099-k is $21,609. Turbo tax just ignores 1099-k because it assumes it's the same. I'm worried I may get in trouble because that implies my income was only $2,214, however I my protection is I can play dumb by saying that's what the form said.

Anybody else on lyft got these mismatching numbers? It was my first year driving. However uber has it looking correct. 

Also what saves me is my gross between uber and lyft is only around 25k and my deductions are gonna be like in the 7.5k range. So I'm not gonna be paying any taxes regardless. Just that my worry is the IRS data system will red flag me.


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## Older Chauffeur (Oct 16, 2014)

mikeslemonade said:


> So I'm using turbo tax and it tells me to use box 7 in 1099-misc which is only $2,214. My gross in 1099-k is $21,609. Turbo tax just ignores 1099-k because it assumes it's the same. I'm worried I may get in trouble because that implies my income was only $2,214, however I my protection is I can play dumb by saying that's what the form said.
> 
> Anybody else on lyft got these mismatching numbers? It was my first year driving. However uber has it looking correct.
> 
> Also what saves me is my gross between uber and lyft is only around 25k and my deductions are gonna be like in the 7.5k range. So I'm not gonna be paying any taxes regardless. Just that my worry is the IRS data system will red flag me.


So have you entered each 1099 separately and answered the TT questions for each 1099?


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## mikeslemonade (Jun 25, 2016)

Older Chauffeur said:


> So have you entered each 1099 separately?


Yes


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## Older Chauffeur (Oct 16, 2014)

Sorry then, I haven't seen that problem before. You could ask UberTaxPro in a private message.


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## mikeslemonade (Jun 25, 2016)

Older Chauffeur said:


> Sorry then, I haven't seen that problem before. You could ask UberTaxPro in a private message.


And now I'm almost done. I went ahead and put the gross incomes into turbo tax. Apparently I owe $5,055 and the mileage deductions didn't even factor in. Grrrrr I may I have to go to HR Block.


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## Older Chauffeur (Oct 16, 2014)

mikeslemonade said:


> And now I'm almost done. I went ahead and put the gross incomes into turbo tax. Apparently I owe $5,055 and the mileage deductions didn't even factor in. Grrrrr I may I have to go to HR Block.


From what I've read here I wouldn't count on H&R Block either. But something isn't adding up. Which version and format of TT are you using? Can you go to the forms and bring up your Schedule C?


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## mikeslemonade (Jun 25, 2016)

Older Chauffeur said:


> From what I've read here I wouldn't count on H&R Block either. But something isn't adding up. Which version and format of TT are you using? Can you go to the forms and bring up your Schedule C?


Turbotax deluxe 2016. I did fiddle around with actual application part at the end when it found errors, but that's confusing. I also just shut my computer down without saving. Didn't see an option to save.


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## Older Chauffeur (Oct 16, 2014)

mikeslemonade said:


> Turbotax deluxe 2016. I did fiddle around with actual application part at the end when it found errors, but that's confusing. I also just shut my computer down without saving. Didn't see an option to save.


CD format? Mine asks each time I close it if I want to save the return. The CD Deluxe is supposed to have everything you need. Have you downloaded the latest forms and updates at the beginning of the session?
Is it fixing the errors?


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## Older Chauffeur (Oct 16, 2014)

Have you seen this and checked the link?
https://uberpeople.net/threads/site...should-be-entered-for-tax-preparation.140370/


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## mikeslemonade (Jun 25, 2016)

Older Chauffeur said:


> Have you seen this and checked the link?
> https://uberpeople.net/threads/site...should-be-entered-for-tax-preparation.140370/


I'm gonna try the online version. The one where it's $20 off.

I see that guide. My uber 1099 sheets look correct. But Lyft seems wrong. The gross boxes should looks about the same and the difference just fees. However one says like $23,000 and one says $2,000 on my Lyft 1099 sheets.


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## mikeslemonade (Jun 25, 2016)

Box 7 and 1 should be closer than that but mine is off by $18k


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## Older Chauffeur (Oct 16, 2014)

mikeslemonade said:


> Box 7 and 1 should be closer than that but mine is off by $18k


I believe you are mixing up info from different sources that have no relation to each other. 1099k box1 is not supposed to match 1099misc box7.
This explains where to put the numbers from Lyft 1099k- the credit card transactions showing what pax paid in fares.
1099 misc box 7 is for bonuses, referrals, etc that Lyft paid you out of their take, separate from fares.

http://quickbooks.intuit.com/r/taxes/taxes-drivers-read-file-lyft-1099/


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## mikeslemonade (Jun 25, 2016)

Older Chauffeur said:


> I believe you are mixing up info from different sources that have no relation to each other. 1099k box1 is not supposed to match 1099misc box7.
> This explains where to put the numbers from Lyft 1099k- the credit card transactions showing what pax paid in fares.
> 1099 misc box 7 is for bonuses, referrals, etc that Lyft paid you out of their take, separate from fares.
> 
> http://quickbooks.intuit.com/r/taxes/taxes-drivers-read-file-lyft-1099/


Thanks for helping thus far. Where do you input the numbers after I calculate since turbo tax kinda ignores the 1099k too. Turbo tax only details each box for the 1099-misc.


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## Older Chauffeur (Oct 16, 2014)

mikeslemonade said:


> Thanks for helping thus far. Where do you input the numbers after I calculate since turbo tax kinda ignores the 1099k too. Turbo tax only details each box for the 1099-misc.


I don't understand why you think TT is ignoring your 1099k. It just doesn't have you fill out the info separately. The instructions tell you to include the income in your self employment earnings. I think you can do this by going to the "1099-misc and other common income" under Wages and Income, and clicking on update for 1099k. Or you can choose forms and manually enter the 1099k box 1 income in box 1a of Schedule C from both Uber and Lyft. Enter the amounts in box 7 from both 1099 misc in box 1b, if TT hasn't done so already.
Use the instructions in the link I gave you (scroll down) to see how to fill out Schedule C manually.


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## mikeslemonade (Jun 25, 2016)

Older Chauffeur said:


> I don't understand why you think TT is ignoring your 1099k. It just doesn't have you fill out the info separately. The instructions tell you to include the income in your self employment earnings. I think you can do this by going to the "1099-misc and other common income" under Wages and Income, and clicking on update for 1099k. Or you can choose forms and manually enter the 1099k box 1 income in box 1a of Schedule C from both Uber and Lyft. Enter the amounts in box 7 from both 1099 misc in box 1b, if TT hasn't done so already.
> Use the instructions in the link I gave you (scroll down) to see how to fill out Schedule C manually.


Okay I think I know what to now in regards to income.

My other question is how come the mileage deductions are they way it is. My first year doing my taxes and 1099 at that. So I recorded my business miles and it equates to $6742. I have two 1099s for Lyft and Uber. And I have two W2s that add up to $10k. Uber and Lyft nets at around $23k.

So while I'm putting in my income, TT will update how much I owe. After I put in my self employment income it says I owe $5k. My other W2s will knock it down some to $4k I owe. And then my mileage deduction knocks it down to 1.5k. So my question is how my deduction is $6.5k and I still owe money when what I owe is $5k. Shouldn't I owe nothing to the federal and state?


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## Older Chauffeur (Oct 16, 2014)

mikeslemonade said:


> Okay I think I know what to now in regards to income.
> 
> My other question is how come the mileage deductions are they way it is. My first year doing my taxes and 1099 at that. So I recorded my business miles and it equates to $6742. I have two 1099s for Lyft and Uber. And I have two W2s that add up to $10k. Uber and Lyft nets at around $23k.
> 
> So while I'm putting in my income, TT will update how much I owe. After I put in my self employment income it says I owe $5k. My other W2s will knock it down some to $4k I owe. And then my mileage deduction knocks it down to 1.5k. So my question is how my deduction is $6.5k and I still owe money when what I owe is $5k. Shouldn't I owe nothing to the federal and state?


Let's go at it a little differently.
How many miles did you drive on app? (Paid miles with pax)
How many dead miles?
For $6742 at 0.54 per mile, you drove 12485 miles. How could you net $23k? Net revenue or net profit?
Most drivers have little profit after the mileage and other deductions are taken. I realize you are in SF where rates are higher, but still, $1.15 X 12485 = $14358, if all those were paid miles. I don't see how you even grossed $23k. Not to mention deducting commissions and fees.
Can you show your Schedule C with your soc sec number redacted?


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## mikeslemonade (Jun 25, 2016)

Older Chauffeur said:


> Let's go at it a little differently.
> How many miles did you drive on app? (Paid miles with pax)
> How many dead miles?
> For $6742 at 0.54 per mile, you drove 12485 miles. How could you net $23k? Net revenue or net profit?
> ...


So in theory if I have 6k it would deduct away the 5k I owe right?

Yes I drove some where on that range at 13k business miles. I used mile IQ. And let me give you a more accurate number on my gross. 28k net. I was just guess that my profit was 23k. So with my question above, how does mileage deductions behave on the tax program. Seems like they split the $6.5k deduction in half and then factored it in to subtract what I owe.


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## Older Chauffeur (Oct 16, 2014)

mikeslemonade said:


> So in theory if I have 6k it would deduct away the 5k I owe right?
> 
> Yes I drove some where on that range at 13k business miles. I used mile IQ. And let me give you a more accurate number on my gross. 28k net. I was just guess that my profit was 23k. So with my question above, how does mileage deductions behave on the tax program. Seems like they split the $6.5k deduction in half and then factored it in to subtract what I owe.


Sorry, but you're not giving me enough information. But to begin with, if your gross is $28k, that is not your net. You are confusing terms that I believe you don't understand. Net is what you have after deducting expenses from gross, in the simplest terms.

Please do yourself a favor - consult a tax preparer and pay to have your tax returns done this time so that you have a better understanding of how they are done. Then next year maybe you will have a shot at doing your own with TT.
I do wish you all the best, but I'm afraid I can't help you, and I don't want to steer you wrong. It seems that you are in over your head on this stuff. No offense intended.


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## mikeslemonade (Jun 25, 2016)

Older Chauffeur said:


> Sorry, but you're not giving me enough information. But to begin with, if your gross is $28k, that is not your net. You are confusing terms that I believe you don't understand. Net is what you have after deducting expenses from gross, in the simplest terms.
> 
> Please do yourself a favor - consult a tax preparer and pay to have your tax returns done this time so that you have a better understanding of how they are done. Then next year maybe you will have a shot at doing your own with TT.
> I do wish you all the best, but I'm afraid I can't help you, and I don't want to steer you wrong. It seems that you are in over your head on this stuff. No offense intended.


I'm just using words loosely and interchangeably. I'm a business major so I atleast know those basics. 28k in fares plus my promotions is my net, total, gross etc.

I feel like you would know how the mileage deduction works. Please that's my last question . Why is that my business deduction miles is $6.5k but it doesn't deduct $6.5k from what I owe? Have you encountered that or seen anyone have that issue or is that normal?


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## Older Chauffeur (Oct 16, 2014)

mikeslemonade said:


> I'm just using words loosely and interchangeably. I'm a business major so I atleast know those basics. 28k in fares plus my promotions is my net, total, gross etc.
> 
> I feel like you would know how the mileage deduction works. Please that's my last question . Why is that my business deduction miles is $6.5k but it doesn't deduct $6.5k from what I owe? Have you encountered that or seen anyone have that issue or is that normal?


I do indeed know how the mileage works, so I will try once more to explain it to you.

The mileage deduction reduces your net profit, and therefore the taxable income from your business. Since I don't know how you could gross what you say you did on so few miles I'm kind of stuck in trying to give you a helpful answer. But it's not a tax credit; it reduces your taxable profit, but not dollar-for-dollar.

Go to Forms (upper right on TT) and find Schedule C in the menu on the left. Look at the numbers the numbers, including line 10 for commissions/fees and what TT has listed for mileage expense, cell phone use, etc. There is something wrong with the way you have done it so far, so you may need to start over.

Keep in mind that you also have to pay FICA taxes (Schedule SE) in addition to ordinary income taxes on your self employment income. If you look at your paycheck stub or W2 from your regular job, you'll see where FICA was withheld, at a rate of roughly 7.6%. Your employer matched that amount. For self employed people, the whole FICA tax is due on the net profit if you make $400 or more. So that's an extra 15.3%, or $1530 for $10,000 profit.

The net profit from self employment rolls over to your Form 1040, where your income tax is figured on all your income. That's also where your filing status, exemptions and standard deduction or itemized deductions (Schedule A) are figured in.

Finally, you're fooling yourself if you think the terms you mentioned are interchangeable in the business world, and you will continue to confuse anyone you talk to. I'm sorry, but you do not understand the basics.


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## mikeslemonade (Jun 25, 2016)

Older Chauffeur said:


> I do indeed know how the mileage works, so I will try once more to explain it to you.
> 
> The mileage deduction reduces your net profit, and therefore the taxable income from your business. Since I don't know how you could gross what you say you did on so few miles I'm kind of stuck in trying to give you a helpful answer. But it's not a tax credit; it reduces your taxable profit, but not dollar-for-dollar.
> 
> ...


Alright that's what I thought the mileage deduction was doing. I was misled as many drivers said they paid a basically no taxes because of how much they drive. So I assumed since I drove so much I would have achieved that.

That's what I drove. For about week or two I didn't keep track of mileage when I started. There's bonuses and I would always meet the goal and exactly stop. I had the uber promotion of $1k when I started. It's pretty good business here since the city is small and there's many short trips. So my mileage didn't go up. And I when I worked it was ideal at night. Mostly busy hours at night.

As for W2 I didn't make that much and TT has me on a refund for that portion of it. Otherwise I would owe even more money if I didn't do another job.


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## Older Chauffeur (Oct 16, 2014)

mikeslemonade said:


> Alright that's what I thought the mileage deduction was doing. I was misled as many drivers said they paid a basically no taxes because of how much they drive. So I assumed since I drove so much I would have achieved that.
> 
> That's what I drove. For about week or two I didn't keep track of mileage when I started. There's bonuses and I would always meet the goal and exactly stop. I had the uber promotion of $1k when I started. It's pretty good business here since the city is small and there's many short trips. So my mileage didn't go up. And I when I worked it was ideal at night. Mostly busy hours at night.
> 
> As for W2 I didn't make that much and TT has me on a refund for that portion of it. Otherwise I would owe even more money if I didn't do another job.


If you wind up owing any amount over $1000, plan on making quarterly estimated payments for 2017. The IRS requires them, and TT will set it up for you with due dates and amounts. There may be penalties involved for noncompliance, possibly even this year. If you are still working a regular job, you can ask to have extra witholding to compensate for your driving income.

In round, rough estimate numbers, it sounds like your net profits are in the $15-16k area, based on your previous posts on earnings reported on your forms 1099. So your FICA taxes alone would be about $2400, give or take a few bucks.

If you grossed $28000 - $5600 commissions (20%)= $22400, you made about $1.79 per mile driven. Deduct the SMR and you have a profit of $1.25 per mile, or $15658. You might shave it a bit with cell phone, water/snacks/extra car washes, etc. But that profit is what rolls over to your 1040 where your W2 income is shown. TT can show you on the forms what your return actually looks like, and you can print it out.

From what I have read, most drivers don't come anywhere close to that kind of profit. So now you have to "pay the piper" who in this case is Uncle Sam.


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