# Do I need to declare UBER income for 2017 if less than $600?



## Isitworthit

I started driving for UBER in 2017 but only took 22 trips and made $229 gross. UBER posted my "Tax Summary for 2017" online but no 1099-K or 1099-MISC because income was less than $600. If I didn't get a 1099 from UBER can I just ignore reporting that income on my return? Am I wrong in my thought that because UBER didn't give me a 1099 then the IRS doesn't know about that $229 income? I'm married filing jointly and both my wife and I have other w-2 income so we do have to file a return.


----------



## Older Chauffeur

Isitworthit said:


> I started driving for UBER in 2017 but only took 22 trips and made $229 gross. UBER posted my "Tax Summary for 2017" online but no 1099-K or 1099-MISC because income was less than $600. If I didn't get a 1099 from UBER can I just ignore reporting that income on my return? Am I wrong in my thought that because UBER didn't give me a 1099 then the IRS doesn't know about that $229 income? I'm married filing jointly and both my wife and I have other w-2 income so we do have to file a return.


I'm not positive on this, but I think Uber is still reporting what they paid you. Regardless, you are supposed to report all earnings. You can file a Schedule C-EZ, and write off the mileage, leaving hardly any profit left to tax.
Disclosure: I'm not a tax professional.


----------



## Okphillip

Isitworthit said:


> I started driving for UBER in 2017 but only took 22 trips and made $229 gross. UBER posted my "Tax Summary for 2017" online but no 1099-K or 1099-MISC because income was less than $600. If I didn't get a 1099 from UBER can I just ignore reporting that income on my return? Am I wrong in my thought that because UBER didn't give me a 1099 then the IRS doesn't know about that $229 income? I'm married filing jointly and both my wife and I have other w-2 income so we do have to file a return.


I don't know but congrats on that! Lol. Actually google that. I believe if a 1099 is under x amount than you don't have to report it.


----------



## Older Chauffeur

Okphillip said:


> I don't know but congrats on that! Lol. Actually google that. I believe if a 1099 is under x amount than you don't have to report it.


From the IRS:

Self-Employment Income

It is a common misconception that if a taxpayer does not receive a Form 1099-MISC or if the income is under $600 per payer, the income is not taxable. There is no minimum amount that a taxpayer may exclude from gross income.

All income earned through the taxpayer's business, as an independent contractor or from informal side jobs is self-employment income, which is fully taxable and must be reported on Form 1040.

Use Form 1040, Schedule C, _Profit or Loss from Business,_ or Form 1040, Schedule C-EZ, _Net Profit from Business (Sole Proprietorship)_ to report income and expenses. Taxpayers will also need to prepare Form 1040 Schedule SE for self-employment taxes if the net profit exceeds $400 for a year. Do not report this income on Form 1040 Line 21 as Other Income.

Independent contractors must report all income as taxable, even if it is less than $600. Even if the client does not issue a Form 1099-MISC, the income, whatever the amount, is still reportable by the taxpayer.

Fees received for babysitting, housecleaning and lawn cutting are all examples of taxable income, even if each client paid less than $600 for the year. Someone who repairs computers in his or her spare time needs to report all monies earned as self-employment income even if no one person paid more than $600 for repairs.


----------



## Fritz Duval

Isitworthit said:


> I started driving for UBER in 2017 but only took 22 trips and made $229 gross. UBER posted my "Tax Summary for 2017" online but no 1099-K or 1099-MISC because income was less than $600. If I didn't get a 1099 from UBER can I just ignore reporting that income on my return? Am I wrong in my thought that because UBER didn't give me a 1099 then the IRS doesn't know about that $229 income? I'm married filing jointly and both my wife and I have other w-2 income so we do have to file a return.


600 is the Cap. Over 600nues, under 600 no. Let it ride...


----------



## Isitworthit

I decided to go ahead and report my earnings on my return and I'm glad I did because I ended up with a net income loss of $51 due to my mileage deduction, and deducting the $75 I paid for the health screen and vehicle inspection.


----------



## henrygates

If you get a 1099 you have to file. Businesses don't have to issue a 1099 if they pay under $600 per individual, so if you don't get one, don't file.

Not a CPA, just my experience.


----------



## handiacefailure

I am a CPA by day and a company can issue a 1099 for even $1 but they are only required to issue them if they pay $600 or more in a calendar year (if a company has a lot of 1099 employees and uses paychex to issue the checks paychex will issue them for any amount but if a company uses Quickbooks it won't issue them for under $600 just depends on the company but IME most companies only issue them if they have to due to the expensve involved).

If you receive a 1099 then definitly file since the IRS has the reported income. If it's under $600 and no 1099 legally you are still suppose to report it but it isn't reported to the IRS.


----------



## BurgerTiime

No you don’t. I made less than $4k and wasn’t sent a 1099 from Uber this year. Furthermore with deductions it’s even less than that and the IRS considers it a hobby. No need to claim it, info was not forwarded to IRS.


----------



## handiacefailure

BurgerTiime said:


> No you don't. I made less than $4k and wasn't sent a 1099 from Uber this year. Furthermore with deductions it's even less than that and the IRS considers it a hobby. No need to claim it, info was not forwarded to IRS.


If you made over $600 from Uber why didn't they issue you a 1099?

Even if a 1099 isn't received it is still reportable legally (and even as a CPA I know no one is going to report income they don't have to even though they are suppose to).


----------



## Older Chauffeur

handiacefailure said:


> If you made over $600 from Uber why didn't they issue you a 1099?
> 
> Even if a 1099 isn't received it is still reportable legally (and even as a CPA I know no one is going to report income they don't have to even though they are suppose to).


As I understand it, Uber issues a 1099misc (where the threshold is $600) only for incentives which Uber actually paid you out of company funds. If you make more than $20,000 in customer paid credit card transactions, then Uber issues you a 1099k.
Disclosure: I am not a tax professional.


----------



## ReyesMX6

I am not a tax professional, but I can explain how this works because it affected eBay sellers, which I have been, starting in 2011. In 2011 the IRS updated Internal Revenue Code (IRC) Section 6050W. This revision required Payment Processing companies, which PayPal and Uber both claim to be, to issue a 1099K if a person makes $20,000 *and * 200 transactions. A 1099-Misc has always been required for incentives or bonuses provided over $600. This means that when they issues a 1099K or a 1099-Misc, the IRS is made aware of the income you received. If you do not receive a 1099K or a 1099-Misc or any other 1099 form, that means the income was not reported to the IRS, however, that does not mean that you should attempt to hide that income or that the IRS can not find out about it. They simply do not know to go looking for it at the time you filed taxes. Although these companies are not required to provide a 1099K, they are required by law to keep records of your transactions for a minimum of 3 years. This means, should you ever be audited by the IRS and they notice that one year you files as receiving income from Uber, but the previous year you did not or the year after, then they can send a request to Uber or any other payment processing service and get that information and revise your returns with no deductions but what can be proven with the information they received.

In most cases with Uber your income is basically tax exempt due to the mileage deduction and other deductions you can use for driving your vehicle, so it would be beneficial to file the income which can help reduce your income burden, as the OP noted they increased their return. The IRS may not go after you if the additional income and deductions would result in a refund, because you just gave the US Government your money for nothing, however failing to report the income and not having the necessary information to show your deductions if they audit could cost you. Everyone is free to do as they please, again I'm not a tax professional, but most people who have ever been audited know that they IRS is not easy on those who owe money.


----------



## ustabefast

All this self employment tax procedure makes me nervous. I only plan to work a few hours and it sounds like it's not worth the additional hassle of dealing with the tax crap.


----------

