# Service / Platinum Fees are Taxable ?



## LAPenguin (Jan 14, 2019)

Noob question so pardon me for not knowing in advance. Why do we get taxed on money that we never "see or earn" aka platform and services fees? Why should we have to pay taxes on money that we didn't "earn" per se. Just thinking that is money U/L should have to deal with tax wise and not us. I made 36K last year including these fees but net (which is not really net as I havn't paid taxes on them yet) was $25K yet when I file I have to put 36K and not the 25K as earned income. A little insight please.

Platform not Platinum I meant


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## DexNex (Apr 18, 2015)

You do not work for Uber/Lyft/whatever.

Uber is a service that your business uses to match with clients. You agree to pay Uber a commission for each contract they provide you and you complete. Theses commissions/fees are listed on your 1040-Schedule C as a cost to help determine the actual profitability of your business. You are going to be taxed on your business profits.

You are a business when reporting ride share taxes, not an employee.


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## LAPenguin (Jan 14, 2019)

DexNex said:


> You do not work for Uber.
> 
> Uber is a service that your business uses to match with clients. You agree to pay Uber a commission for each contract they provide you and you complete. Theses commissions/fees are listed on your 1040-Schedule C as a cost to help determine the actual profitability of your business. You are going to be taxed on your business profits.


So in essence I 'earned" each service and platform fee and I agreed to give that to U/L for the right to use their service so I may earn money from customers? Sheesh. I see why more and more people hate U/L. I can make it work but if I didn't have to factor that in I would be saving at least 4K to the IRS.


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## DexNex (Apr 18, 2015)

LAPenguin said:


> So in essence I 'earned" each service and platform fee and I agreed to give that to U/L for the right to use their service so I may earn money from customers? Sheesh. I see why more and more people hate U/L. I can make it work but if I didn't have to factor that in I would be saving at least 4K to the IRS.


You are not going to pay taxes on these commissions/fees. They are expenses deductions that you will take to determine the profits of your business. You will only pay taxes on the profits of your business.

Uber and Lyft are NOT your employers. They ARE services that your business uses to connect to sales/contract leads. They are also your payment processors.


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## LAPenguin (Jan 14, 2019)

DexNex said:


> You are not going to pay taxes on these commissions/fees. They are expenses deductions that you will take to determine the profits of your business. You will only pay taxes on the profits of your business.
> 
> Uber and Lyft are NOT your employers. They ARE services that your business uses to connect to sales/contract leads. They are also your payment processors.


Haha... Your ears must be burning. I just pulled out my taxes from last year and saw that the accountant has that deducted so I am back to a nice small amount considering I have 25K in online miles that I can write off. Appreciate the video as well. Nice info found in there.


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## FLKeys (Dec 27, 2018)

Think of Uber/Lyft as a credit card company, a software company, and an answering service for your business.

The amount the passenger paid is your income. You pay Uber/Lyft a fee to process the payment, you pay them a fee to use the software, and you pay them a fee to receive request and schedule them to you.

These fees you pay are an expense that you deduct from your income.


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