# Are Tolls Deductible



## Italnstallion99 (Sep 5, 2015)

I am wondering am I able to deduct tolls even tho uber does reimburse you for them? Or do I only deduct tolls that are not reimbursed?

Example 1: Had a ride into New York City. Uber paid me a lump sum to cover tolls and a little bit extra, After my drop off to head back to staging area had a pay a toll to get there is that deductible?

Example 2: Was visiting family decried to turn the app on and work for a few hours after my family visit. After I was done working, I had to pay a toll to get home. Is this deductible?


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## Stevie The magic Unicorn (Apr 3, 2018)

All tolls while working are deductible


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## Invisible (Jun 15, 2018)

I didn’t know I could get reimbursed for my tolls, so thanks for the thread.


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## UberTaxPro (Oct 3, 2014)

Italnstallion99 said:


> I am wondering am I able to deduct tolls even tho uber does reimburse you for them? Or do I only deduct tolls that are not reimbursed?
> 
> Example 1: Had a ride into New York City. Uber paid me a lump sum to cover tolls and a little bit extra, After my drop off to head back to staging area had a pay a toll to get there is that deductible?
> 
> Example 2: Was visiting family decried to turn the app on and work for a few hours after my family visit. After I was done working, I had to pay a toll to get home. Is this deductible?


1. No, tolls(and other expenses) that are reimbursed are not deductible 
2. Maybe, depends on your tax base



Stevie The magic Unicorn said:


> All tolls while working are deductible


...unless reimbursed. Reimbursed expenses are never deductible.


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## FLKeys (Dec 27, 2018)

Italnstallion99 said:


> I am wondering am I able to deduct tolls even tho uber does reimburse you for them? Or do I only deduct tolls that are not reimbursed?
> 
> Example 1: Had a ride into New York City. Uber paid me a lump sum to cover tolls and a little bit extra, After my drop off to head back to staging area had a pay a toll to get there is that deductible?
> 
> Example 2: Was visiting family decried to turn the app on and work for a few hours after my family visit. After I was done working, I had to pay a toll to get home. Is this deductible?


Depends on your record keeping and how you record the money from Uber & Lyft in your records. I record all toll reimbursements from Uber & Lyft as income. I deduct all my tolls I paid while working as expenses. This includes tolls to go get the Pax (not reimbursed by Uber/Lyft), tolls while on the trip (reimbursed by Uber/Lyft most of the time), and tolls to return back to my primary working area (not reimbursed by Uber/Lyft). I just think this is the easier method for me.

If you do not record the toll reimbursements as income than you need to calculate the difference between what you were paid and what you were reimbursed and only claim the difference as expenses. I don't like this method mainly because toll reimbursements in my area from both companies are usually wrong and when I request an adjustment it comes as a bonus. Makes for complicated accounting.

Example 1: All the tolls would be considered expenses and calculated based on what method above you use.

Example 2: If you did not work and just returned home would you have to pay the toll? Yes, then generally not deductible. No, then most likely deductible.


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## Stevie The magic Unicorn (Apr 3, 2018)

UberTaxPro said:


> 1. No, tolls(and other expenses) that are reimbursed are not deductible
> 2. Maybe, depends on your tax base
> 
> 
> ...unless reimbursed. Reimbursed expenses are never deductible.


That depends on how you write up the paperwork.

The reimbursement paid to you isn't taxable, therefore it's like your writing it off.

I report all my revenue as income and write off all my business tolls. Same difference.

Reporting toll reimbursements as income saves a line on my books.

Column 14: unrembursed tolls.
Column 15 reimbursed tolls.
Column 1 revenue

Vs

Column 1 revenue
Column 13 tolls.

See it's an extra line off the books that way. Also when you inevitably get reimbursements for tolls days after the fact, your not changing lines, only adding revenue.


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## UberTaxPro (Oct 3, 2014)

Stevie The magic Unicorn said:


> That depends on how you write up the paperwork.
> 
> The reimbursement paid to you isn't taxable, therefore it's like your writing it off.
> 
> ...


"That depends on how you write up the paperwork." Either way you mention the reimbursed expenses are not being deducted. The #'s do come out the same but reimbursed expenses are not income and shouldn't be reported as such. Some not so honest tax payers use reimbursed expenses to jack up their income and not take the deduction to help qualify for EIC, hence the reasoning for reimbursed expenses not being income.


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## U/L guy (May 28, 2019)

Invisible said:


> I didn't know I could get reimbursed for my tolls, so thanks for the thread.


You only get toll reimbursement when you're driving a pax to a destination, you're responsible for the tolls otherwise. These tolls that haven't been reimbursed are tax deductible.


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## Stevie The magic Unicorn (Apr 3, 2018)

UberTaxPro said:


> "That depends on how you write up the paperwork." Either way you mention the reimbursed expenses are not being deducted. The #'s do come out the same but reimbursed expenses are not income and shouldn't be reported as such. Some not so honest tax payers use reimbursed expenses to jack up their income and not take the deduction to help qualify for EIC, hence the reasoning for reimbursed expenses not being income.


If i was going to do that...

I'd just add a few grand in cash revenue and the IRS would never know....

Also on airport runs sometimes i make a show out of not charging the tolls to get a bigger tip...

Not technically reimbursed.. now is it?

You make a good point i never thought about.

But when does the IRS look for EXTRA income?

Or what about my little habbit of only adding tolls to the meter on credit card charges? And telling cash customers that the ride is $28.00 +$2.50 in tolls but never making it onto the meter?

Grey areas?

Illegal?

maybe...


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## U/L guy (May 28, 2019)

Stevie The magic Unicorn said:


> If i was going to do that...
> 
> I'd just add a few grand in cash revenue and the IRS would never know....
> 
> ...


Tolls are deductible on the schedule C form for business expenses.


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## UberTaxPro (Oct 3, 2014)

U/L guy said:


> Tolls are deductible on the schedule C form for business expenses.


not if they're reimbursed



Stevie The magic Unicorn said:


> If i was going to do that...
> 
> I'd just add a few grand in cash revenue and the IRS would never know....
> 
> ...


Ever since the EIC came out people have been playing the increase your income game. You have to have earned income to get the EIC . People have also been not deducting expenses from self employment income to qualify or increase the EIC. Not deducting all your expenses to qualify and fudging your income to qualify are prohibited by IRS. These tactics are used for some other credits but the EIC is the main culprit.


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## Stevie The magic Unicorn (Apr 3, 2018)

UberTaxPro said:


> not if they're reimbursed
> 
> 
> Ever since the EIC came out people have been playing the increase your income game. You have to have earned income to get the EIC . People have also been not deducting expenses from self employment income to qualify or increase the EIC. Not deducting all your expenses to qualify and fudging your income to qualify are prohibited by IRS. These tactics are used for some other credits but the EIC is the main culprit.


It simply doesn't matter if i call the toll payments income or not, because i'm writing off the tolls themselves either way.

$220
-76
-19
-3.40 (TOLLS)
$121.60 TAXABLE PROFIT

VS
$216.60
-76
-19
$121.60 TAXABLE PROFIT

What's the difference?

THE DIFFERENCE?

You don't have to count tolls separately!

You don't have to separately account for which tolls are reimbursed and which arn't and you don't have to change un-reimbursed tolls into reimbursed tolls on your books.

Let's say your doing uber and you get toll reimbursements after the fact.

6/15/2019
$148.50 revenue
$150 deposited
$2.50 unreimbursed tolls
$1.50 reimbursed tolls payment.

6/16/2019
$+ 2.50 deposited (which isn't revenue, it's just a bank deposit)
$-2.50 Unrembursed tolls
$+2.50 reimbursed tolls.

VS
6/15/2019
$150 revenue
$4.00 tolls

6/16/2019
$+2.50 Revenue

There's no accounting system in the world that makes sense with negative figures in for anything. See how much simpler it is to not seperate out tolls?


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## UberTaxPro (Oct 3, 2014)

Stevie The magic Unicorn said:


> It simply doesn't matter if i call the toll payments income or not, because i'm writing off the tolls themselves either way.
> 
> $220
> -76
> ...


Yes! I've already agreed with you that the bottom line comes out the same which ever method you use!!!


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## Wildgoose (Feb 11, 2019)

The thing is how it was shown in your 1099 income.
If tolls reimbursement are included in 1099 your income amount (that is your payout amount total by Uber), you can use tolls deduction when you file your tax.
If tolls reimbursement are excluded in 1099 your income amount, you can not use tolls fees for deductible.


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## RabbleRouser (Apr 30, 2019)

Trolls are Not Deductible
They’re Tolerated
⚠But NOT Deductible⚠


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## SteelSox (Dec 14, 2018)

Stevie The magic Unicorn said:


> All tolls while working are deductible


Even if the fare includes the toll fee?


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## Stevie The magic Unicorn (Apr 3, 2018)

SteelSox said:


> Even if the fare includes the toll fee?


If you write up all your uber payment as "income" and all your tolls as expenses yes. But it requires including your toll fee as revenue.


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## KK2929 (Feb 9, 2017)

Italnstallion99 said:


> I am wondering am I able to deduct tolls even tho uber does reimburse you for them? Or do I only deduct tolls that are not reimbursed?
> 
> Example 1: Had a ride into New York City. Uber paid me a lump sum to cover tolls and a little bit extra, After my drop off to head back to staging area had a pay a toll to get there is that deductible?
> 
> Example 2: Was visiting family decried to turn the app on and work for a few hours after my family visit. After I was done working, I had to pay a toll to get home. Is this deductible?


-----------------------------
Uber does not reimburse you. The paxs pays the toll and that payment comes back to you in the payment of the fare. Soooo, actually, the pax is reimbursing you.


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