# Impact of Upfront Pricing on Taxes?



## neweagle (May 13, 2015)

The upfront prices are still considered what the riders are paying the drivers, so I'll assume the reported 1099 amounts will generally be much higher at the end of the year vs. prior years. My question is: is there a tax impact based solely on the higher reported gross amount, even if the net income is still probably zero for most drivers?

For example, if we assume a driver drove the same number of miles in 2017 as 2016, but driver's 1099 was $10k in 2016, and it goes to $13k for 2017 based solely on the higher fares charged to riders via upfront prices, then the net taxable income is still probably the same because the increased "service fees" will offset the increase in reported revenue. But does the fact that the reported revenue was higher have any impact (i.e. On tax rate, deductions, etc). Or is the only thing that matters the net income, no matter how much gross revenue is reported on the 1099?


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## Asificarewhatyoudontthink (Jul 6, 2017)

You are incorrect.

Go into Ride Details.

See the section that says what You are paid.
That is what you were paid.

The Service Fee is where the rest of the Upfront Pricing ends up.
Notice how that is in where Uber gets theirs?


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## neweagle (May 13, 2015)

Asificarewhatyoudontthink said:


> You are incorrect.
> 
> Go into Ride Details.
> 
> ...


For tax reporting purposes, they report what the rider pays to Uber as payment to you (that's in the Terms of Service). So you may get a $5 payout at the end of a ride, but if the upfront price was $11, THAT'S what will be reported on your 1099 at the end of the year as gross earnings. As far as the IRS is concerned, it's the same as if the rider handed you $11, then you mailed uber $6 to cover their fees. The $6 is considered an expense you can write off, along with the mileage deduction, cell phone, etc.


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## UberTaxPro (Oct 3, 2014)

neweagle said:


> The upfront prices are still considered what the riders are paying the drivers, so I'll assume the reported 1099 amounts will generally be much higher at the end of the year vs. prior years. My question is: is there a tax impact based solely on the higher reported gross amount, even if the net income is still probably zero for most drivers?
> 
> For example, if we assume a driver drove the same number of miles in 2017 as 2016, but driver's 1099 was $10k in 2016, and it goes to $13k for 2017 based solely on the higher fares charged to riders via upfront prices, then the net taxable income is still probably the same because the increased "service fees" will offset the increase in reported revenue. But does the fact that the reported revenue was higher have any impact (i.e. On tax rate, deductions, etc). Or is the only thing that matters the net income, no matter how much gross revenue is reported on the 1099?


Net income is all that matters for tax purposes. It's good to include the gross 1099 amount on your schedule c because the IRS computers will match 1099 you've received with your gross income.


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## Asificarewhatyoudontthink (Jul 6, 2017)

neweagle said:


> For tax reporting purposes, they report what the rider pays to Uber as payment to you (that's in the Terms of Service). So you may get a $5 payout at the end of a ride, but if the upfront price was $11, THAT'S what will be reported on your 1099 at the end of the year as gross earnings. As far as the IRS is concerned, it's the same as if the rider handed you $11, then you mailed uber $6 to cover their fees. The $6 is considered an expense you can write off, along with the mileage deduction, cell phone, etc.


Not according to my 1099 last year.
It was exactly my net earnings from Uber.


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## neweagle (May 13, 2015)

Asificarewhatyoudontthink said:


> Not according to my 1099 last year.
> It was exactly my net earnings from Uber.


Well then Uber sent out different 1099s to different drivers I guess. My 1099 total income section consisted of three parts: Gross Fares, Safe Ride Fees, and Booking Fees. Then the "Other Potential Decuctions" section shows the Service Fees and the on-trip mileage.


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## thesweatersnog (Aug 29, 2017)

Asificarewhatyoudontthink said:


> Not according to my 1099 last year.
> It was exactly my net earnings from Uber.


Would you be able to post some kind of redacted screen shot? Obviously you need to make sure you are not revealing any personal info... but that would be interesting to see.


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

Deduct the difference between your 1099 and what you actually got paid as "uber commission"


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