# Uncompensated tolls



## OldBay (Apr 1, 2019)

There is a line for "toll fees for work" in the expenses section. 

I know how much total I have spent on tolls because of EZpass receipts.

However, UL also pay for tolls, in "reimbursements" or "expenses".

The amount of reimbursed tolls are less than half of what I actually spent. (This would be deadhead trips back through a toll gate, or when uber underpaid what I was charged.)

Should we subtract the reimbursed tolls from actual tolls when entering "toll fees for work"?


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## Italnstallion99 (Sep 5, 2015)

I have the same question. As en example if I picked up a passenger and had to go through a toll to drive the passenger to their destination uber will reimburse for that.

Once the ride is finished and you decide to head back to your starting point you would pay a "dead toll" , can this be deducted?


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## OldBay (Apr 1, 2019)

Italnstallion99 said:


> I have the same question. As en example if I picked up a passenger and had to go through a toll to drive the passenger to their destination uber will reimburse for that.
> 
> Once the ride is finished and you decide to head back to your starting point you would pay a "dead toll" , can this be deducted?


I filed my taxes and I "double dipped" on this. I listed my ezpass receipts in the tolls section and I also included tolls in the misc expenses where the rest of the expenses like booking fees, etc.

The reason is that the way uber lists tolls, is "tolls, airport fees, surcharges" and there is no way to legitimately subtract this from my ez pass receipts. IOW, I don't know what portion of "tolls, airport fees, and surcharges" is just tolls.

The amount concerned here is so small that it doesn't impact my taxes much at all. If I get audited, I have plausible deniability and can amend it.

I think the real issue is that uber does not consistently reimburse for tolls. The uber toll expense was 1/3rd actual ezpass receipts. It should have been half or more.


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## [email protected] (Feb 10, 2020)

OldBay said:


> There is a line for "toll fees for work" in the expenses section.
> 
> I know how much total I have spent on tolls because of EZpass receipts.
> 
> ...


You should probably ask the tax guy that's on this forum, but this is how I look at it:

The reimbursed tolls are income. This is separate from your expenses - deduct your actual expenses/actual tolls.


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## FLKeys (Dec 27, 2018)

[email protected] said:


> You should probably ask the tax guy that's on this forum, but this is how I look at it:
> 
> The reimbursed tolls are income. This is separate from your expenses - deduct your actual expenses/actual tolls.


Many drivers count the toll reimbursement as income and just deduct what they actually paid in tolls as an expense. Overall you would generally get the same results. However it is not the correct way to report it and it could cause you issues, I just can't remember how right now.



OldBay said:


> The reason is that the way uber lists tolls, is "tolls, airport fees, surcharges" and there is no way to legitimately subtract this from my ez pass receipts. IOW, I don't know what portion of "tolls, airport fees, and surcharges" is just tolls.


You know that pet of the IRS code that talks about Hobbies and actual businesses? Part of the test to determine if it is a hobby or not is:
*Whether you carry on the activity in a businesslike manner and maintain complete and accurate books and records.*

Well keeping proper records yourself instead of relying on Uber/Lyft would help show you are running like a business. Keep record of your trips and detail the tolls you were reimbursed. It may surprise you how many times Uber/Lyft has screwed you out of tolls. Plus you will instantly have the information you need.

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Reimbursed tolls should not be included in your total income. You should be able to show how much you paid in tolls, how much you were reimbursed for, and your actual toll expenses for your tax form.


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## [email protected] (Feb 10, 2020)

FLKeys said:


> Many drivers count the toll reimbursement as income and just deduct what they actually paid in tolls as an expense. Overall you would generally get the same results. However it is not the correct way to report it and it could cause you issues, I just can't remember how right now.
> 
> Well keeping proper records yourself instead of relying on Uber/Lyft would help show you are running like a business. Keep record of your trips and detail the tolls you were reimbursed. It may surprise you how many times Uber/Lyft has screwed you out of tolls. Plus you will instantly have the information you need.
> 
> ...


See...that's why I said ask the tax guy. &#128513; I had a total of one toll all year in 2019 (you can pretty much avoid tolls easily in my market).

Would you say, then, that you'd deduct your net tolls? What if your net tolls were positive (i.e., you get reimbursed the full toll, but you have EZPass which gives you discounts)?


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## OldBay (Apr 1, 2019)

FLKeys said:


> Many drivers count the toll reimbursement as income and just deduct what they actually paid in tolls as an expense. Overall you would generally get the same results. However it is not the correct way to report it and it could cause you issues, I just can't remember how right now.
> 
> You know that pet of the IRS code that talks about Hobbies and actual businesses? Part of the test to determine if it is a hobby or not is:
> *Whether you carry on the activity in a businesslike manner and maintain complete and accurate books and records.*
> ...


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

FLKeys said:


> Many drivers count the toll reimbursement as income and just deduct what they actually paid in tolls as an expense. Overall you would generally get the same results. However it is not the correct way to report it and it could cause you issues, I just can't remember how right now.


Where's the line on schedule C for _reimbursed expenses_?

All i see is revenue and expenses?


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## FLKeys (Dec 27, 2018)

Stevie The magic Unicorn said:


> Where's the line on schedule C for _reimbursed expenses_?
> 
> All i see is revenue and expenses?


Pretty sure you know the answer to that.


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## Italnstallion99 (Sep 5, 2015)

the million dollar question is should we still deduct the tolls even tho uber/lyft does reimburse us? My EZ-Pass statements show a higher amount then what is listed on my tax summary. So I am going to go off my EZ-pass not what uber/lyft report. 

Something tells me this is an allowable deduction but want to be sure.


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

Poverty Ant said:


> Hilton is basically closing all their hotels cause occupancy is like 10% for many of them.





Italnstallion99 said:


> the million dollar question is should we still deduct the tolls even tho uber/lyft does reimburse us? My EZ-Pass statements show a higher amount then what is listed on my tax summary. So I am going to go off my EZ-pass not what uber/lyft report.
> 
> Something tells me this is an allowable deduction but want to be sure.


Yes it's deductible. As are unreimbursed tolls where you get had to take a toll without being paid.


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## Italnstallion99 (Sep 5, 2015)

that is what I thought, Thanks


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## UberTaxPro (Oct 3, 2014)

Italnstallion99 said:


> I have the same question. As en example if I picked up a passenger and had to go through a toll to drive the passenger to their destination uber will reimburse for that.
> 
> Once the ride is finished and you decide to head back to your starting point you would pay a "dead toll" , can this be deducted?





Stevie The magic Unicorn said:


> Where's the line on schedule C for _reimbursed expenses_?
> 
> All i see is revenue and expenses?


eye doctors have proven that "_reimbursed" _is a difficult word to see!


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