# Tax Questions, please help!



## ColonyMark (Sep 26, 2019)

I started part time driving for Uber in June 2019. I received a 1099-MISC form, but it only shows around $600. I read that Uber only sends out the standard 1099 (not Misc) if you earn more than $20,000. My uber account shows the actual earnings for 2019, around 7K, but there's a note that says "not for tax filing purposes"
I assume that means uber only reported the $600 to the IRS?

Turbotax has a space to enter the 1099-Misc amount. How to I enter the full actual earnings? They want me to upgrade to a more expensive service to ask live questions.
Also, when I try to enter my mileage, Turbotax wants me to upgrade to their self employed service which costs $120. I hate to do that since I only drive part time.
There was a TurboTax special deal for Uber drivers, but I missed the deadline.
Is my only option to pay the more expensive TurboTax service? I guess that might be cheaper than going to a full service tax preparation company.

I don't want any problems with the IRS. Any advice would be much appreciated.


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## Older Chauffeur (Oct 16, 2014)

Costco (and similar discount stores) sells a CD format of T/T DELUXE Version for $39.95. It contains Schedules C and SE, which is all you need to file for self employment such as driving for ride share. Re the 1099misc, try this: show the info where T/T asks for income reported to you on 1099’s. Then show the amount Uber shows as your earnings under “no 1099 received,“ or “income not reported on a 1099.” After deducting Uber’s fees/commissions, the amount should match your bank deposits. Deduct your business mileage and any other expenses to arrive at your net profit. If you have to use T/T online, I think the prices are higher, and they don’t put the schedules I mentioned on the Deluxe Version, forcing you to upgrade. The CD allows you to prepare up to five returns and includes free e-filing federal returns. You can share with a friend or family member to reduce the cost further.
Good luck.
Edit: I think Uber means the tax info isn’t meant to send with your return. If the total of credit card transactions for trips by a single driver is at least $20K, they issue a 1099k. Don’t bank on the earnings not being reported.


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## ColonyMark (Sep 26, 2019)

Older Chauffeur said:


> Costco (and similar discount stores) sells a CD format of T/T DELUXE Version for $39.95. It contains Schedules C and SE, which is all you need to file for self employment such as driving for ride share. Re the 1099misc, try this: show the info where T/T asks for income reported to you on 1099's. Then show the amount Uber shows as your earnings under "no 1099 received," or "income not reported on a 1099." After deducting Uber's fees/commissions, the amount should match your bank deposits. Deduct your business mileage and any other expenses to arrive at your net profit. If you have to use T/T online, I think the prices are higher, and they don't put the schedules I mentioned on the Deluxe Version, forcing you to upgrade. The CD allows you to prepare up to five returns and includes free e-filing federal returns. You can share with a friend or family member to reduce the cost further.
> Good luck.
> Edit: I think Uber means the tax info isn't meant to send with your return. If the total of credit card transactions for trips by a single driver is at least $20K, they issue a 1099k. Don't bank on the earnings not being reported.


Thanks! Thats great info


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## ColonyMark (Sep 26, 2019)

We


Older Chauffeur said:


> Costco (and similar discount stores) sells a CD format of T/T DELUXE Version for $39.95. It contains Schedules C and SE, which is all you need to file for self employment such as driving for ride share. Re the 1099misc, try this: show the info where T/T asks for income reported to you on 1099's. Then show the amount Uber shows as your earnings under "no 1099 received," or "income not reported on a 1099." After deducting Uber's fees/commissions, the amount should match your bank deposits. Deduct your business mileage and any other expenses to arrive at your net profit. If you have to use T/T online, I think the prices are higher, and they don't put the schedules I mentioned on the Deluxe Version, forcing you to upgrade. The CD allows you to prepare up to five returns and includes free e-filing federal returns. You can share with a friend or family member to reduce the cost further.
> Good luck.
> Edit: I think Uber means the tax info isn't meant to send with your return. If the total of credit card transactions for trips by a single driver is at least $20K, they issue a 1099k. Don't bank on the earnings not being reported.


well I'm screwed! My wife and I file separately because of her student loan payments. We've always both taken the standard deduction. There's a rule that states if one spouse takes the standard deduction the other spouse must do the same! I can't itemize my deductions! I can't write off my miles! She's already filed hers.
Crap! That means I owe 2K! I would only owe 500 with mileage.


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## Older Chauffeur (Oct 16, 2014)

ColonyMark said:


> We
> 
> well I'm screwed! My wife and I file separately because of her student loan payments. We've always both taken the standard deduction. There's a rule that states if one spouse takes the standard deduction the other spouse must do the same! I can't itemize my deductions! I can't write off my miles! She's already filed hers.
> Crap! That means I owe 2K! I would only owe 500 with mileage.


No, you're not screwed! You can still file Schedules C and SE for your business. The standard deduction has nothing to do with your business profit or loss. Answer the step by step questions T/T asks from start to finish.
Once your net profit floats over to your Form 1040 and is added to any regular employment wages, you will take the standard deduction, rather than taking deductions for medical expenses, mortgage interest and taxes on real estate and cars, etc. The standard deduction is not the same as the standard mileage rate for business use of a car.
YOU MUST FILE SCHEDULES C AND SE, IT'S NOT AN OPTION! I'm not shouting, just making an important point to get your attention. :laugh:


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## [email protected] (Feb 10, 2020)

I agree with @Older Chauffeur . Your business deductions on Schedule C are not considered "itemized deductions". You fill out Schedule C and you should still be able to take the standard deduction.


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## percy_ardmore (Jun 4, 2019)

Totally at a loss as to why a married couple would file separately unless a divorce is imminent. At a loss as to what student loan deduction (max 2500) has to do with that decision. Can't get EIC if filing sep.


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## Older Chauffeur (Oct 16, 2014)

percy_ardmore said:


> Totally at a loss as to why a married couple would file separately unless a divorce is imminent. At a loss as to what student loan deduction (max 2500) has to do with that decision. Can't get EIC if filing sep.


I wondered that as well. My daughter has student loans she's paying on but she and her husband file jointly.
Just found this in an article from the balance.com: (emphasis mine)
*Are You Eligible? *
You can deduct interest on student loans paid by you if you use the single, head of household, or qualifying widow(er) filing status, or *by you or your spouse if you file a joint return. You can't claim the student loan interest deduction if you file a separate married return*, and you can't be claimed as a dependent on anyone else's tax return.


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## [email protected] (Feb 10, 2020)

Older Chauffeur said:


> I wondered that as well. My daughter has student loans she's paying on but she and her husband file jointly.


There are income limits where you phase out/can't deduct student loan interest. Likely OP makes too much for them to qualify when they file jointly. I stopped being able to deduct any of my student loan interest a few years out of college for that reason. &#128563;

There are various situations where filing separately results in a lower tax liability. You guys don't know OP's tax situation - but you can probably assume that they pay less in tax doing it this way. It doesn't necessarily indicate issues in their marriage, but it's more indicative that they were smart enough to consider whether filing jointly or separately was better for they financially. &#128513;

Just saw you added the thing about eligibility for student loan interest not being deductible if you are married filing separately. THAT'S a problem. &#129315; Though, if that's the case, I'm surprised it didn't get kicked out by the IRS last year when OP's wife's status was married filing separately, but took the deduction. TurboTax or similar software probably just excluded it.


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## Older Chauffeur (Oct 16, 2014)

Okay, but what about the bit I posted above about eligibility, and filing separately? Looks like they could be in trouble with the IRS.


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## [email protected] (Feb 10, 2020)

Older Chauffeur said:


> Okay, but what about the bit I posted above about eligibility, and filing separately? Looks like they could be in trouble with the IRS.


Yeah, I started "quoting" you before you updated your answer. I've updated my response to reflect that. &#128513;


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## Older Chauffeur (Oct 16, 2014)

[email protected] said:


> TurboTax or similar software probably just excluded it.


So do you mean their tax program fixed it so that the wife's return was filed correctly without a deduction for student loan interest?


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## [email protected] (Feb 10, 2020)

Older Chauffeur said:


> So do you mean their tax program fixed it so that the wife's return was filed correctly without a deduction for student loan interest?


Probably, or in theory it should because it does checks/cross checks. I know that I always input my student loan interest in and it basically told me I couldn't deduct it.

@UberTaxPro Can you confirm or deny?


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## ColonyMark (Sep 26, 2019)

Older Chauffeur said:


> No, you're not screwed! You can still file Schedules C and SE for your business. The standard deduction has nothing to do with your business profit or loss. Answer the step by step questions T/T asks from start to finish.
> Once your net profit floats over to your Form 1040 and is added to any regular employment wages, you will take the standard deduction, rather than taking deductions for medical expenses, mortgage interest and taxes on real estate and cars, etc. The standard deduction is not the same as the standard mileage rate for business use of a car.
> YOU MUST FILE SCHEDULES C AND SE, IT'S NOT AN OPTION! I'm not shouting, just making an important point to get your attention. :laugh:


Great thanks


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