# if i took a trip on Dec 31st, but i cashed out the payment for that trip on January 1st, will that trip be included in my 2022 1099k or my 2023 1099k?



## Liam_Niam (14 d ago)

if i took a trip on Dec 31st, but i cashed out the payment for that trip on January 1st, will that trip be included in my 2022 1099k or my 2023 1099k??


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## Older Chauffeur (Oct 16, 2014)

For taxpayers on a cash basis, as most are, you count the earnings when paid, so the money you have coming should be reported for 2023. As for a 1099 from lyft/Uber, who knows? The main thing is that it’s reported. If yo have kept accurate records it should be easy to tell.


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## W00dbutcher (Jan 14, 2019)

Nothing to worry about. Just go with the Uber tax information.

There's really no need to individually break down every ride per year. The overall tax information is sufficient.


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## Civicdriver (3 mo ago)

Who cares?
Worried about falling into a higher tax bracket?


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## 80sDude (Jul 20, 2015)

Who cares seriously


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## Calirolla (Aug 13, 2018)

Probably doesn't matter when you cash out. Cashing out doesn't show on the earnings chart, well it might show -85 cents somewhere.
Usually any earnings up until 4 AM the following day are considered the previous day income.
Drove until 3:20 AM, it all shows as 12/31 income.


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## Seamus (Jun 21, 2018)

Liam_Niam said:


> if i took a trip on Dec 31st, but i cashed out the payment for that trip on January 1st, will that trip be included in my 2022 1099k or my 2023 1099k??


The IRS uses matching software so your schedule c line 1 must equal the value of the 1099’s they received for you or it won’t match, and it will raise a flag, and you’ll be hearing from them. Therefore, as others have said who cares just use the info on your 1099’s.

HOWEVER, if you are taking College Accounting 101 and this is a philosophical question:

If you are an LLC, S corp, or C corp and make greater than 5 million dollars of gross revenue per year than you will be using _Accrual Based Accounting_ which means revenue is recognized in the period of occurrence so the revenue is 2022.
If you are a normal person making under 5 million dollars of gross revenue per year than you will be using _Cash Based Accounting_ which means revenue is recognized in the period you are paid so the revenue will be 2023.
Class Dismissed!


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## painfreepc (Jul 17, 2014)

Liam_Niam said:


> if i took a trip on Dec 31st, but i cashed out the payment for that trip on January 1st, will that trip be included in my 2022 1099k or my 2023 1099k??


This sounds like that question "who's buried in Grant's Tomb"


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## W00dbutcher (Jan 14, 2019)

painfreepc said:


> This sounds like that question "who's buried in Grant's Tomb"


Nobody. This has been established for years.


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## Launchpad McQuack (Jan 8, 2019)

Seamus said:


> If you are a normal person making under 5 million dollars of gross revenue per year than you will be using _Cash Based Accounting_ which means revenue is recognized in the period you are paid so the revenue will be 2023.


Don't individuals and "small businesses" have the option to choose whether to use cash or accrual accounting? I use cash because I find it to be simpler, but I seem to recall that I had the option of choosing.

To answer the question, my experience with Uber is that they also use cash accounting when generating 1099s. So for the deliveries that I did on 12/31, the earnings for those deliveries will NOT be on my 1099 for 2022 because Uber didn't direct deposit those funds until 2023.

The caveat here is that I don't use instant cash out and don't know if it changes the way that Uber reports the earnings. For example, the earnings for all deliveries that I did last week will be direct deposited into my account sometime early this week. (I don't know exactly what day because of the holiday. It might delay things.) So any earnings from 12/26/2022 forward will be on my 2023 1099 and NOT my 2022 1099 (because Uber didn't actually pay me until 2023). However, if I had done deliveries on 12/26/2022 and then used instant cash out to cash out those earnings on 12/27/2022, I don't know if Uber will move those earnings to my 2022 1099 because I received the payment in 2022 or if they will still report it on my 2023 1099 because that is when the direct deposit was scheduled. I have no experience with instant cash out. (For your specific question it doesn't make a difference because you drove on 12/31 and cashed out on 1/1 so you received the payment in 2023 regardless.)


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## Seamus (Jun 21, 2018)

Launchpad McQuack said:


> Don't individuals and "small businesses" have the option to choose whether to use cash or accrual accounting? I use cash because I find it to be simpler, but I seem to recall that I had the option of choosing.
> 
> To answer the question, my experience with Uber is that they also use cash accounting when generating 1099s. So for the deliveries that I did on 12/31, the earnings for those deliveries will NOT be on my 1099 for 2022 because Uber didn't direct deposit those funds until 2023.
> 
> The caveat here is that I don't use instant cash out and don't know if it changes the way that Uber reports the earnings. For example, the earnings for all deliveries that I did last week will be direct deposited into my account sometime early this week. (I don't know exactly what day because of the holiday. It might delay things.) So any earnings from 12/26/2022 forward will be on my 2023 1099 and NOT my 2022 1099 (because Uber didn't actually pay me until 2023). However, if I had done deliveries on 12/26/2022 and then used instant cash out to cash out those earnings on 12/27/2022, I don't know if Uber will move those earnings to my 2022 1099 because I received the payment in 2022 or if they will still report it on my 2023 1099 because that is when the direct deposit was scheduled. I have no experience with instant cash out. (For your specific question it doesn't make a difference because you drove on 12/31 and cashed out on 1/1 so you received the payment in 2023 regardless.)


Businesses from Sole Proprietors to C Corporations can choose to use either Accrual Based Accounting or Cash Based Accounting For their Accounting purposes.

HOWEVER, once you are a business that Grosses more than 5 million dollars per year you MUST use Accrual Based Accounting.

INDIVIDUALS are irrelevant except in the context of a Business Sole Proprietor.


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## Calirolla (Aug 13, 2018)

Uber posted the December monthly statements on the drivers/partners site, but no yearly summary yet. Could add 12 of the PDFs info together for now.
Seems to match with my app earnings off a few dollars that got tipped late for *gross *, but $150 less for *Net  *which I thought was shown in the app earnings. Made $249 after midnight until around 3 am.
January 1st app only shows $29.11 with 5 trips which is all I did in the afternoon.


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## Launchpad McQuack (Jan 8, 2019)

Seamus said:


> INDIVIDUALS are irrelevant except in the context of a Business Sole Proprietor.


Yes, when I said "individuals" that is what I meant. I did not use the proper terminology. Thanks for the clarification.


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