# Your Taxes against Uber



## Catscratchfever (Jun 4, 2015)

Now that I have read most of what everyone is talking about, Uber and it's tax violations, we have recently come to figure them out, which there is no doing so.
Yes, what Uber is doing is illeagal, taxing us all on what our gross was for the year while they come out smelling the roses.
First and foremost, PLEASE 1099 them, now. Take your difference and put it in box #7 on the 1099 misc. income form you will send to Uber Technology, Inc. at 1455 Market Street, 4th Floor, San Fransico, Ca. 94103
ID# 45-264-7441
This is unbelievable what they are doing. Soon, the IRS will be back taxing them for millions!!


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## ReviTULize (Sep 29, 2014)

what are you talking about?
Uber doesn't tax anyone.


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## Catscratchfever (Jun 4, 2015)

Exactly!! They tax you on 100% of your earnings, yet they take away 25-28% from your meter depending on what kind of vehicle you are in, ie..UberX, Black, SUV, XL..etc..etc..so,, why do you let them tax you on, example: $10,000 total when you only actually received 25-28% less? They do not file taxes. Which is why they are illeagal as hell


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## TimFromMA (Mar 4, 2015)

Catscratchfever said:


> Exactly!! They tax you on 100% of your earnings, yet they take away 25-28% from your meter depending on what kind of vehicle you are in, ie..UberX, Black, SUV, XL..etc..etc..so,, why do you let them tax you on, example: $10,000 total when you only actually received 25-28% less? They do not file taxes. Which is why they are illeagal as hell


You are clearly confused.

Uber does not withhold ANY taxes from any of it's drivers. They send out a 1099 form that show's your gross earnings and you are responsible for filing your own tax return.


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## Catscratchfever (Jun 4, 2015)

Isn't that what i just said. Most people will not file a return with Uber in it nor claim what was taken from them


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## Kingo9 (May 20, 2015)

Pretty sure this is quite simple... Fill out the form with your net, not gross, then deduct your gas, maintenance, etc. Pay the tax on your Net minus deductions. 

Close thread.


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## TimFromMA (Mar 4, 2015)

Catscratchfever said:


> Isn't that what i just said. Most people will not file a return with Uber in it nor claim what was taken from them


Nothing is taken by Uber. You have to pay your own taxes to the government.

If you worked as a regular employee somewhere, your company would withhold all your taxes for you. In the case of Uber, they don't withhold anything. It's your job to figure out what you should be paying in taxes and pay it.


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## Lidman (Nov 13, 2014)

Kingo9 said:


> Pretty sure this is quite simple... Fill out the form with your net, not gross, then deduct your gas, maintenance, etc. Pay the tax on your Net minus deductions.
> 
> Close thread.


Now why would you want the thread closed. We haven't even gone thru the first page yet.


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## Lidman (Nov 13, 2014)

Catscratchfever said:


> Exactly!! They tax you on 100% of your earnings, yet they take away 25-28% from your meter depending on what kind of vehicle you are in, ie..UberX, Black, SUV, XL..etc..etc..so,, why do you let them tax you on, example: $10,000 total when you only actually received 25-28% less? They do not file taxes. Which is why they are illeagal as hell


Your gross earnings would not be 10K, they would be (according to what uber takes out) between 7k to 8k, and don't forget the $1 safety fee.


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## Older Chauffeur (Oct 16, 2014)

Catscratchfever said:


> Exactly!! They tax you on 100% of your earnings, yet they take away 25-28% from your meter depending on what kind of vehicle you are in, ie..UberX, Black, SUV, XL..etc..etc..so,, why do you let them tax you on, example: $10,000 total when you only actually received 25-28% less? They do not file taxes. Which is why they are illeagal as hell


The money Uber is keeping (they collect from the customer, not you) is their commission. It is not a tax collected from you. If you have evidence that Uber is not paying taxes, which is dubious on its face, by all means contact the IRS and the CA Franchise Tax Board and let them know what you have discovered. The IRS will pay a share of what they collect from tax cheats to whistle blowers. 
Seriously, you need to consult a tax professional to have this explained to you.


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## UberRidiculous (May 19, 2015)

Catscratchfever said:


> Now that I have read most of what everyone is talking about, Uber and it's tax violations, we have recently come to figure them out, which there is no doing so.
> Yes, what Uber is doing is illeagal, taxing us all on what our gross was for the year while they come out smelling the roses.
> First and foremost, PLEASE 1099 them, now. Take your difference and put it in box #7 on the 1099 misc. income form you will send to Uber Technology, Inc. at 1455 Market Street, 4th Floor, San Fransico, Ca. 94103
> ID# 45-264-7441
> This is unbelievable what they are doing. Soon, the IRS will be back taxing them for millions!!


Sounded good at first but now after all replies I'm confused.


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## Simon (Jan 4, 2015)

Yo


Catscratchfever said:


> Exactly!! They tax you on 100% of your earnings, yet they take away 25-28% from your meter depending on what kind of vehicle you are in, ie..UberX, Black, SUV, XL..etc..etc..so,, why do you let them tax you on, example: $10,000 total when you only actually received 25-28% less? They do not file taxes. Which is why they are illeagal as hell


Your doing your taxes wrong.


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## chi1cabby (May 28, 2014)

Catscratchfever there has been a lot of confusion amongst Drivers on the 1099K sent out by Uber.


zombieguy said:


> If Uber collects $1,000 in fares and you get a payment from them for lets say $700, your 1099 would be for $700, they don't charge you for their percentage.


You'll get a 1099K from Uber for $1,000, not $700.

*Understanding Taxes: The 1099*


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## zombieguy (May 22, 2015)

chi1cabby said:


> Catscratchfever there has been a lot of confusion amongst Drivers on the 1099K sent out by Uber.
> 
> You'll get a 1099K from Uber for $1,000, not $700.
> 
> *Understanding Taxes: The 1099*


I didn't know they sent a 1099K. So you have to deduct the commission they take out and for miscellaneous expenses like the tickets they pay for you.


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## chi1cabby (May 28, 2014)

Uber sent out 1099K for the first time for the Tax Year 2014. Before that it was 1099Misc.
I'm not sure about the fines or enforcement tickets paid by Uber, but everything else, like SRFs & commissions, the driver will have to subtract as expenses.


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## UberTaxPro (Oct 3, 2014)

Catscratchfever said:


> Isn't that what i just said. Most people will not file a return with Uber in it nor claim what was taken from them


Catscratchfever 
You might be best served by hiring a tax professional when it's time to file your taxes. Do you do your own taxes now?


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## ReviTULize (Sep 29, 2014)

Catscratchfever said:


> Isn't that what i just said. Most people will not file a return with Uber in it nor claim what was taken from them


Exactly. 
The percentage you pay to Uber is deducted as an expense (professional and legal fees is what I used)

Then, you are only taxed on your profit


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## ReviTULize (Sep 29, 2014)

zombieguy said:


> The driver has nothing to do with what Uber collects. Uber will send you a 1099 on the money they paid you, not your gross fares which they take a percentage of. If Uber collects $1,000 in fares and you get a payment from them for lets say $700, your 1099 would be for $700...


Not true. (Unless I am reading this wrong)
They send you a 1099 for gross. You deduct their percentage as a business expense


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## zombieguy (May 22, 2015)

ReviTULize said:


> Not true. (Unless I am reading this wrong)
> They send you a 1099 for gross. You deduct their percentage as a business expense


Yes that is correct, I thought they sent a 1099misc but it is a 1099k where you have to deduct their fees from the gross. This is the way they get away with claiming to be a "tech company" and you are paying them a processing fee for the app.


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## uberdriver (Aug 4, 2014)

Although the OP seems to have been confused about Uber taxing drivers, he may be onto something about drivers should be sending Uber a 1099-MISC which, like all 1099s, should be copied to the IRS.

Given that Uber for the last tax year decided to switch from issuing 1099-MISC for the net amount to issuing 1099-K for the gross amount (most likely to look better in the Class Action lawsuits of ICs versus employees), may be every driver should be sending a 1099 back to Uber for the amount of the SRF and the 20/25/28% "paid to Uber".


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## zombieguy (May 22, 2015)

uberdriver said:


> Although the OP seems to have been confused about Uber taxing drivers, he may be onto something about drivers should be sending Uber a 1099-MISC which, like all 1099s, should be copied to the IRS.
> 
> Given that Uber for the last tax year decided to switch from issuing 1099-MISC for the net amount to issuing 1099-K for the gross amount (most likely to look better in the Class Action lawsuits of ICs versus employees), may be every driver should be sending a 1099 back to Uber for the amount of the SRF and the 20/25/28% "paid to Uber".


I think you could only send a 1099 if you have an incorporated business. I worked for a DJ company years ago that gave us a 1099 misc and the IRS cracked down on them and said that all Contractors had to give them a bill for services. So I had a billing pad that I would have to bill them for the money they owed me even though they set the rates. You can't really give Uber a 1099 anyway because they are a "tech company" that is processing your payments minus their fee for each transaction they process.


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## uberdriver (Aug 4, 2014)

zombieguy said:


> I think you could only send a 1099 if you have an incorporated business.


No. If you have a "business", and every Uber driver has one in the sense that it is a Schedule C activity, you can, and may be must, send a 1099-MISC



zombieguy said:


> You can't really give Uber a 1099 anyway because they are a "tech company" that is processing your payments minus their fee for each transaction they process.


Precisely. because this year they chose to categorize their fees as an amount that you pay them as an "expense" out of your (driving) business "revenue", you can send it to them. And may be you must send it or you could be subject to an IRS penalty. That would be an interesting case for an IRS auditor to take a closer look at....


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## Tim In Cleveland (Jul 28, 2014)

Yes, Uber does send out 1099's for the full fare which makes little sense. Perhaps their philosophy is we took in the full fare, then paid the safe rider fee and commission? I don't know.
No matter what they put in the box, you should be deducting all safe rider fees and commission on what you claim. Next, deduct all expenses: Phones purchased, cables, water, barf bags, phone service etc. Next, take a deduction for ALL miles driven (not just miles for phases 2, and 3). Do not take a mileage deduction AND try to deduct car washes and repairs. That kind of stuff is included in the mileage deduction. Do you need internet service to view your account, watch training videos and access this forum? Deduct your internet service.


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## newsboy559 (Oct 14, 2014)

The problem is, Uber claims that it is the drivers who accept the payment. This is false. The driver has nothing to do with accepting the payment from the end user of the app and drivers don't even have any access to the customer's payment information. Then Uber says it is the driver who keeps his share of the fare and then pays Uber the 20% commission and safe ride fees.

The reailty is, it is completely opposite. It is Uber who accepts the payment and then forwards the driver his share of every fare at the end of the week, while keeping their portion of fees.

To compound the matter further, Uber then tells the IRS at the end of the year that all of the money they collected is actually income for the driver partner. The driver partner then has the responsibility to deduct all of the associated fees off their "income." so the driver partner is forced to claim income that really never was income in the first place. All of the commissions and fees should actually be taxed to Uber as business income, not the driver. This is how Uber is cheating the IRS out of millions of dollars in tax revenue.


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## zombieguy (May 22, 2015)

This all very interesting. SO basically everyone better be keeping records of every mile they drive with that app on. It now makes sense why on another thread and I forget which state, was saying that drivers have to pay sales tax on every ride. So this means when you get the 1099-K you have to pay sales tax for your state since Uber did not pay or charge that. ****ing unbelievable.


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## Tim In Cleveland (Jul 28, 2014)

zombieguy said:


> This all very interesting. SO basically everyone better be keeping records of every mile they drive with that app on. It now makes sense why on another thread and I forget which state, was saying that drivers have to pay sales tax on every ride. So this means when you get the 1099-K you have to pay sales tax for your state since Uber did not pay or charge that. ****ing unbelievable.


That's insane. Drivers can't be charged sales tax. If it's determined the ride must be taxed, the rider would have to pay that on top of the fare and the driver would never handle it. I've never heard of a taxi charging tax so why would we?


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## zombieguy (May 22, 2015)

Tim In Cleveland said:


> That's insane. Drivers can't be charged sales tax. If it's determined the ride must be taxed, the rider would have to pay that on top of the fare and the driver would never handle it. I've never heard of a taxi charging tax so why would we?


Depends on the state. In NJ, Limos have sales tax but Taxis do not. I know there was something going on in Rhode Island with Uber and the sales tax.


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## newsboy559 (Oct 14, 2014)

zombieguy said:


> Depends on the state. In NJ, Limos have sales tax but Taxis do not. I know there was something going on in Rhode Island with Uber and the sales tax.


I have also heard of a local jurisdiction that began charging some sort of ride share tax on every ride. For the life of me, I can't find the article or message post that I read that on.


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## IndyDriver (Nov 6, 2014)

The majority of this thread is baseless speculation. No, you won't have to pay sales tax on rides you have given.


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## UberRidiculous (May 19, 2015)

IndyDriver said:


> The majority of this thread is baseless speculation. No, you won't have to pay sales tax on rides you have given.


I don't know how the sales tax in Rhode Island will be handled for drivers going forward but Uber just handed over a big chunk of money in April 2015 for the last year & half of their "sales tax" and said the law was ambiguous.

http://m.providencejournal.com/article/20150429/NEWS/150429139


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## UberRidiculous (May 19, 2015)

I'm learning that just because something seems unbelievable doesn't mean it isn't true or can't be true.


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## IndyDriver (Nov 6, 2014)

UberRidiculous said:


> I'm learning that just because something seems unbelievable doesn't mean it isn't true or can't be true.


Uber is the payment processor and is responsible for charging the proper fees and taxes on drivers behalf. They would be responsible, not the drivers. I don't see any way around that.


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## UberRidiculous (May 19, 2015)

IndyDriver said:


> Uber is the payment processor and is responsible for charging the proper fees and taxes on drivers behalf. They would be responsible, not the drivers. I don't see any way around that.


I hope you are right for the drivers sake. Uber just hasn't ceased to amaze me. Responsibility is always ambiguous with Uber.


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## Dierwolf (Oct 31, 2014)

We have an IRS office here, I think I will go down with all this paperwork and shit and talk with them and see what they have to say.


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## DrJeecheroo (Feb 12, 2015)

As far as sales tax, I don't know why all the state don't follow Delaware's policy.


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## IndyDriver (Nov 6, 2014)

Dierwolf said:


> We have an IRS office here, I think I will go down with all this paperwork and shit and talk with them and see what they have to say.


About what? Uber issues a 1099-K for gross fares collected and paid to you. 1099-misc for bonuses, referrals, abd guarantee pay. You report this on schedule C, then deduct Uber's commission and SRF, plus tolls or whatever else. Its pretty cut, dry and by the book. If you don't get it, hire an accountant. Also read the tax forum here ..this stuff was covered in detail early in the year. If there was an issue the IRS or state's owed sales tax would've noticed by now considering the number of drivers that filed 2014 taxes. How did sales tax even come up? Services aren't taxed..


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## uberdriver (Aug 4, 2014)

IndyDriver said:


> How did sales tax even come up? Services aren't taxed..


"Services aren't taxed". Services are indeed taxed with sales tax in some jurisdictions. May be not in yours. But sales tax is mostly a local tax and varies from place to place. And many do tax services.


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## IndyDriver (Nov 6, 2014)

uberdriver said:


> "Services aren't taxed". Services are indeed taxed with sales tax in some jurisdictions. May be not in yours. But sales tax is mostly a local tax and varies from place to place. And many do tax services.


Fair enough, but I still don't understand where this fear of paying sales tax came from on this thread. Anyone?


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## Scuba Steve (Mar 1, 2015)

newsboy559 said:


> I have also heard of a local jurisdiction that began charging some sort of ride share tax on every ride. For the life of me, I can't find the article or message post that I read that on.


New Orleans does this- it's a 50¢ tax that is passed directly to the rider. A $5 min ride is $5.50 there


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## uberdriver (Aug 4, 2014)

newsboy559 said:


> I have also heard of a local jurisdiction that began charging some sort of ride share tax on every ride. For the life of me, I can't find the article or message post that I read that on.





Scuba Steve said:


> New Orleans does this- it's a 50¢ tax that is passed directly to the rider. A $5 min ride is $5.50 there


DC charges a 1% fee of the rideshare fare. It is added to the passenger's fare, just like a store adds sales tax to the item's price. And it is just a matter of time until the politicians raise it to 2%, then 3% and so on, like all similar ad-valorem taxes have evolved over time in DC and other socialist-leaning cities.


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## Backdash (Jan 28, 2015)

*NYC

Uber Fee - Black Car Fund - Sales Tax 
($230.88) - ($26.87) - ($92.67) *

20% becomes just a hair over 30%.

The thing is it isn't the fare PLUS tax like anything else. The passenger isn't paying the sales tax on the service purchased, the service delivery method is paying the sales tax for the purchaser of the service.

Thats like a gas station lowering the price of gas by the tax amount then the station paying the sales tax for me on the gas I bought.

CRAZY


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## cybertec69 (Jul 23, 2014)

chi1cabby said:


> Catscratchfever there has been a lot of confusion amongst Drivers on the 1099K sent out by Uber.
> 
> You'll get a 1099K from Uber for $1,000, not $700.
> 
> *Understanding Taxes: The 1099*


Correct, and the $300 from the $700 you must file as commission paid and to whom it was paid to, which you are not taxed on, you are taxed on the remaining $700.
Uber will send you a 1099 and a breakdown of what you collected and they charged as commission. Example: $30,000 Gross "which includes commission", Uber commission $9,000, you will file for $21,000 gross earnings and the other $9,000 as commissions paid to Uber, the commission paid to Uber will not be a tax liability towards you, but towards Uber. Uber on their end with their tax accountants will have to pay taxes on that commission earned.


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## uberdriver (Aug 4, 2014)

Backdash said:


> *NYC
> 
> Uber Fee Black Car Fund Sales Tax
> ($230.88) ($26.87) ($92.67) *
> ...


There is no limit to the creativity of politicians to line up their government's pockets. You are already paying sales tax on the purchase cost of your vehicle, registration tax, gasoline tax, income tax on the net earnings that you may make, Uber is presumably paying corporate income tax on their share of the fare, but that is not enough. They also want to get money from a tax on the gross revenues that you collect driving, although most of the revenues are not earnings because they just go to pay for your costs, including all those other taxes.


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## hortiz (Jun 8, 2015)

I want to join Uber Driver to work part time and i'm also Receiving Unemployment benefits from the Department of Labor of NYC, i stop working full time a month ago.

I would like to know if i will stop receiving my benefits once i join uber , i don't know if the contract that you sing to join uber will affect my benefits because of everything i read uber doesn't report your taxes and you're just a contractor.

This is a temporary money earning while i found my full time job, i hope you can give me some advice.

Thanks in advance


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## cybertec69 (Jul 23, 2014)

hortiz said:


> I want to join Uber Driver to work part time and i'm also Receiving Unemployment benefits from the Department of Labor of NYC, i stop working full time a month ago.
> 
> I would like to know if i will stop receiving my benefits once i join uber , i don't know if the contract that you sing to join uber will affect my benefits because of everything i read uber doesn't report your taxes and you're just a contractor.
> 
> ...


Uber reports your earnings and sends you a 1099 at the end of the year, if you are collecting unemployment benefits, you will have to file those earnings every week with the state, then they will see if you are eligible to receive your full unemployment benefits, part of them or none.


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## cybertec69 (Jul 23, 2014)

hortiz said:


> I want to join Uber Driver to work part time and i'm also Receiving Unemployment benefits from the Department of Labor of NYC, i stop working full time a month ago.
> 
> I would like to know if i will stop receiving my benefits once i join uber , i don't know if the contract that you sing to join uber will affect my benefits because of everything i read uber doesn't report your taxes and you're just a contractor.
> 
> ...


You will also need to go through this process to drive a FHV/Taxi in NYC. It's not so simple, and it's costly.

You can NOT drive for Uber or any other FHV base without TLC plates in nyc "regular passenger plates will not suffice and is illegal, no base will take you on without TLC issued plates", to obtain TLC plates you will have to obtain commercial Taxi/FHV insurance, to do so you must first poses a FHV license which is obtained thru the TLC, by passing a drug test and fingerprint background check, the drug test, once you obtain your tlc issued FHV license, then and only then can you shop for FHV/Taxi commercial insurance which will run you minimum $5500-$6000 a year for full coverage on Toyota Camry or comparable vehicle,with a clean driving record.
Vehicle costs not including car payments are as follows :
1. Comercial insurance $6000 annual
2. Registration costs $500 annual
3. Inspection "3 inspections per year,every 4 months" $105 annual
4. FHV Base sticker fee "those 3 prettyround decals plastered on your car with the base number you are affiliated withso you are able to pperate" $500 every two years
5. FHV renewal fee $150 every 2 years, drug test must be taken every year or your FHV license will be suspended.

Here is the TLC website, all you need to know and the process you must go through to obtain your FHV license.
http://www.nyc.gov/html/tlc/html/home/home.shtml

http://www.nyc.gov/html/tlc/html/industry/fhv_veh_owners.shtml

Not as simple as you thought.


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## hortiz (Jun 8, 2015)

thanks Cybertec, i already read all that and i have my TLC License, i know about the expenses..

i don't want to sound tricky, the thing is that i don't know how the system works exactly.. for example if i make 500 + 420 of unemployment benefits, maybe the Depto of labor will see that i'm making good money a week and i don't know if they will take away my benefits..


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