# For those Uber and Lyft drivers who did Food delivery for the first time in 2020



## Seamus (Jun 21, 2018)

Every year a few seem to be taken by surprise come tax time.If you did Uber and Lyft only in the past you are aware that you only get a 1099K if you Grossed over 20k, or you got a 1099 MISC if you received more than $600 in non pax driving money.

If you signed up for Food Delivery for the first time in 2020, be aware that DD,GH,PM,Instacart etc.etc. do not operate the way Uber and Lyft do regarding taxes. If you received more than* $600 *you will receive a 1099 NEC from them (and so will the IRS). For 2020, the 1099 NEC replaces the 1099 MISC for all practical purposes there is no difference for you between the NEC and the MISC.

Every year there are a few drivers that come on the forum caught by surprise that Food Delivery apps don't do it the same way as Uber/Lyft. Now you know.

Also, the Food Delivery code to use for your schedule C is: 492000. You're welcome!


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## sumidaj (Nov 2, 2020)

Seamus said:


> Every year a few seem to be taken by surprise come tax time.If you did Uber and Lyft only in the past you are aware that you only get a 1099K if you Grossed over 20k, or you got a 1099 MISC if you received more than $600 in non pax driving money.
> 
> If you signed up for Food Delivery for the first time in 2020, be aware that DD,GH,PM,Instacart etc.etc. do not operate the way Uber and Lyft do regarding taxes. If you received more than* $600 *you will receive a 1099 NEC from them (and so will the IRS). For 2020, the 1099 NEC replaces the 1099 MISC for all practical purposes there is no difference for you between the NEC and the MISC.
> 
> ...


thank you!

Do they send these tax papers to you through the mail?


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## Seamus (Jun 21, 2018)

sumidaj said:


> thank you!
> 
> Do they send these tax papers to you through the mail?


They all do it a slightly different. Which company are you referring to?


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## islanddriver (Apr 6, 2018)

Seamus said:


> Every year a few seem to be taken by surprise come tax time.If you did Uber and Lyft only in the past you are aware that you only get a 1099K if you Grossed over 20k, or you got a 1099 MISC if you received more than $600 in non pax driving money.
> 
> If you signed up for Food Delivery for the first time in 2020, be aware that DD,GH,PM,Instacart etc.etc. do not operate the way Uber and Lyft do regarding taxes. If you received more than* $600 *you will receive a 1099 NEC from them (and so will the IRS). For 2020, the 1099 NEC replaces the 1099 MISC for all practical purposes there is no difference for you between the NEC and the MISC.
> 
> ...


This year Uber is also using the 1099nec


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## Seamus (Jun 21, 2018)

islanddriver said:


> This year Uber is also using the 1099nec


But only for direct payments made from them to you such as referral bonus, special promotions etc .etc.. Not for food delivery amounts correct? Food Delivery, UE has always been included in the 1099k format.


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## islanddriver (Apr 6, 2018)

Seamus said:


> But only for direct payments made from them to you such as referral bonus, special promotions etc .etc.. Not for food delivery amounts correct? Food Delivery, UE has always been included in the 1099k format.


In place of 1099MIsc


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## sumidaj (Nov 2, 2020)

Seamus said:


> They all do it a slightly different. Which company are you referring to?


I do Door dash, uber eats and a little postmates&#8230;I still haven't set up my account to collect money from PM though lol


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## Seamus (Jun 21, 2018)

sumidaj said:


> I do Door dash, uber eats and a little postmates&#8230;I still haven't set up my account to collect money from PM though lol


DD and PM are straightforward. If you make more than $600 you get a 1099 NEC in the amount of money they gave to you. Easy. For DD, check your email you should have an invite to create an account with a company called Payable. You set up all your information and choose to receive it by snail mail or electronically. If you don't do this you'll just get it mailed to you. PM sux so bad I deleted the app after 2 deliveries so I don't know how you get the 1099 NEC from them.

UE is a little more complicated. For tax purposes they consider themselves nothing more than a third party payment processor between the customer and you. So you have to understand:
GROSS Pay = all money Uber collected from customers on your orders
Fees = all the money you didn't get from your orders that Uber kept.
NET pay = is what was actually paid to you


If the GROSS pay is more than 20k you get a 1099k.
If the Gross pay is less than 20k you will simply get a tax summary for the information to file your taxes.
Either way, on your schedule C you use their GROSS pay as your revenue and then must deduct their fees as an expense on schedule C.

You sign in to the Uber Drivers site on their webpage and the information will be there for you.

Good Luck


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## sumidaj (Nov 2, 2020)

Seamus said:


> DD and PM are straightforward. If you make more than $600 you get a 1099 NEC in the amount of money they gave to you. Easy. For DD, check your email you should have an invite to create an account with a company called Payable. You set up all your information and choose to receive it by snail mail or electronically. If you don't do this you'll just get it mailed to you. PM sux so bad I deleted the app after 2 deliveries so I don't know how you get the 1099 NEC from them.
> 
> UE is a little more complicated. For tax purposes they consider themselves nothing more than a third party payment processor between the customer and you. So you have to understand:
> GROSS Pay = all money Uber collected from customers on your orders
> ...


ahh thank you! I do MOSTLY UE. DD / PM I barely do anything and I don't think I even made $100 off either of them.

Ugh...of course Uber makes it hard right? lol

thank you for the insight!!!


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## FLKeys (Dec 27, 2018)

I started UE technically this year.

Your post brings up something I did not consider. Do you complete 2 schedule C's one for PAX and one for Deliveries? Since it is all Uber I'm thinking just one Schedule C next year. After all the Schedule C code is primarily for statistical purposes, it has no bearing on taxes owed.


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## Seamus (Jun 21, 2018)

FLKeys said:


> I started UE technically this year.
> 
> Your post brings up something I did not consider. Do you complete 2 schedule C's one for PAX and one for Deliveries? Since it is all Uber I'm thinking just one Schedule C next year. After all the Schedule C code is primarily for statistical purposes, it has no bearing on taxes owed.


I only do food delivery now but when I did both I just did one combined schedule C and since in my transition year Rideshare was the predominant $$$ I used that code. My cousin the CPA said they are "close enough" where he didn't think there would be any problem doing one. Especially UE since the 1099k wasn't broken out by rs or delivery (at least when I did both) it would be tough to do two.


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## Iluvpits (Feb 12, 2021)

Seamus said:


> Every year a few seem to be taken by surprise come tax time.If you did Uber and Lyft only in the past you are aware that you only get a 1099K if you Grossed over 20k, or you got a 1099 MISC if you received more than $600 in non pax driving money.
> 
> If you signed up for Food Delivery for the first time in 2020, be aware that DD,GH,PM,Instacart etc.etc. do not operate the way Uber and Lyft do regarding taxes. If you received more than* $600 *you will receive a 1099 NEC from them (and so will the IRS). For 2020, the 1099 NEC replaces the 1099 MISC for all practical purposes there is no difference for you between the NEC and the MISC.
> 
> ...


Thank you very much for the info. 2020 was my first year doing deliveries for UberEats, so I'm a newbie to the world of doing taxes as a delivery person. 
Do you happen to know why I have two separate 1099-NEC forms - one that was mailed to me from Uber and another that I can access directly on the Uber app? The amounts shown are radically different between the two.


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## Seamus (Jun 21, 2018)

Iluvpits said:


> Thank you very much for the info. 2020 was my first year doing deliveries for UberEats, so I'm a newbie to the world of doing taxes as a delivery person.
> Do you happen to know why I have two separate 1099-NEC forms - one that was mailed to me from Uber and another that I can access directly on the Uber app? The amounts shown are radically different between the two.


You should have one 1099 NEC from Uber. There should be no reason that the amounts are different. Are you sure the online one is a 1099 NEC and not a "tax summary"? If you post them both (while blackening out personal information) maybe I can help you more.

On the surface it sounds to me that the online one is a tax summary which would be much higher than a 1099 NEC. Did you also do Uber X or only UberEats? Uber uses 1099k for customer payments to them and a 1099 NEC for non customer direct compensation (such as bonuses, quests, etc.)


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## charly21 (May 14, 2020)

my NEC form from doordash shows $1k more than my payments/deposits for 2020 period..is this normal ?


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## wallae (Jun 11, 2018)

Also
For those same people.. a test
https://internationaliq.org/

https://www.free-iqtest.net/


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## Seamus (Jun 21, 2018)

charly21 said:


> my NEC form from doordash shows $1k more than my payments/deposits for 2020 period..is this normal ?


That's a large discrepancy! NO, not at all normal from DoorDash. You need to get on that right away with DD support or Use the 1099 Team, [email protected]

Don't ignore it because the IRS will have the number from the Doordash 1099 so if you put in a lower number it won't match and you will be flagged.


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## Poolorapond (Nov 8, 2019)

Seamus said:


> Every year a few seem to be taken by surprise come tax time.If you did Uber and Lyft only in the past you are aware that you only get a 1099K if you Grossed over 20k, or you got a 1099 MISC if you received more than $600 in non pax driving money.
> 
> If you signed up for Food Delivery for the first time in 2020, be aware that DD,GH,PM,Instacart etc.etc. do not operate the way Uber and Lyft do regarding taxes. If you received more than* $600 *you will receive a 1099 NEC from them (and so will the IRS). For 2020, the 1099 NEC replaces the 1099 MISC for all practical purposes there is no difference for you between the NEC and the MISC.
> 
> ...


Do you know if I can deduct what UE lists as Food Cost Expenses as an expense? It's part of their expense section, but TurboTax didn't include it as an expense when it brought my data in. It's definitely not something that was paid to me. I'm not clear on exactly what it is. It came out to a little over $1 per trip average for me in 2020. Thanks.


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## FLKeys (Dec 27, 2018)

wallae said:


> Also
> For those same people.. a test
> https://internationaliq.org/
> 
> https://www.free-iqtest.net/


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## Seamus (Jun 21, 2018)

Poolorapond said:


> Do you know if I can deduct what UE lists as Food Cost Expenses as an expense? It's part of their expense section, but TurboTax didn't include it as an expense when it brought my data in. It's definitely not something that was paid to me. I'm not clear on exactly what it is. It came out to a little over $1 per trip average for me in 2020. Thanks.


Are you talking about a 1099K, 1099 NEC, or a tax summary?


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## Poolorapond (Nov 8, 2019)

Seamus said:


> Are you talking about a 1099K, 1099 NEC, or a tax summary?


It shows up in the tax summary. Thanks.


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## Seamus (Jun 21, 2018)

Poolorapond said:


> It shows up in the tax summary. Thanks.


So Uber plays a game that for Tax Purposes they are only a "payment processor". So they list a "Gross amount" which is higher than you actually got paid. Then you have to expense out their fees, commissions, etc.etc.

So on your Schedule C the "gross amount" they give you goes on line 1. The commission, fees, etc.etc. will then be expensed on line 10. Line 1 minus line 10 should equal what you were actually paid. Assuming all you did was UE and not other apps.


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## Poolorapond (Nov 8, 2019)

Thanks! I was thinking this was likely the case. I was just concerned that TurboTax didn’t include that line of expenses. But I didn’t even have that line on my summary last year. So maybe it’s one of the things UE is handling/reporting a little differently starting 2020.


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## changase (Aug 12, 2020)

Poolorapond said:


> Thanks! I was thinking this was likely the case. I was just concerned that TurboTax didn't include that line of expenses. But I didn't even have that line on my summary last year. So maybe it's one of the things UE is handling/reporting a little differently starting 2020.


So, did you put FOOD COST EXPENSE (it appears as expense on the Tax Summary 2020) as an expense in your tax return?

This line is new for this year, so I am not sure if i can deduct this amount.

Thank you in advance


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## Poolorapond (Nov 8, 2019)

changase said:


> So, did you put FOOD COST EXPENSE (it appears as expense on the Tax Summary 2020) as an expense in your tax return?
> 
> This line is new for this year, so I am not sure if i can deduct this amount.
> 
> Thank you in advance


That is what I did based on the advice from Seamus. I didn't get further verification from a tax pro. But this answer is the only thing that makes sense to me as it is definitely not any component of my income. I didn't see this line on my '19 tax year forms either.


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