7 Easy Uber and Lyft Driver Tax Tips for 2016
We’ve prepared a general checklist that you can use in 2016 for the essential Uber and Lyft driver tax tips to maximize your income:
❏ 1099s & Schedule C: Hold onto that 1099 from Uber, Lyft and Sidecar — you’ll need it so you know how much income to report on your Schedule C.
❏ Export Key Statements: If you use accounting software, export your profit and loss statement, balance sheet, and trial balance to Excel or directly into your tax software. This information will also be used to populate your Schedule C. With an app like Hurdlr, a few taps on your smartphone will generate these.
❏ Mileage: To the extent not already included in your financial statements (Item 2), aggregate/export information related to your automobile expenses including total miles driven (if you are taking the standard mileage deduction), repair and maintenance costs, gas purchases, etc.
❏ Assets: To the extent not detailed in your balance sheet, compile a list of the assets you purchased during the year, and make sure to include the purchase price and date acquired. For individual drivers, this list may be limited to only the car they purchased.
❏ Estimated Payments: Calculate the total dollar value of the estimated tax payments you made during the year. If available, refer to copies of the 1040 ES payment vouchers and checks you sent to the IRS.
❏ Vehicle Details: If applicable, gather information about your vehicle, including Vehicle Identification Number (VIN), make, model, date purchased and battery kilowatt hours so you can calculate depreciation and claim your Electric Drive Motor Vehicle Credit.
❏ Get Hurdlr: Wouldn’t it be great if there was an app that simplified this for you? There is, it’s called Hurdlr, and it allows you to easily track and manage your finances from anywhere, anytime…on your phone.
Your accountant or tax software will likely only require summary level information related
to your driving revenues and expenses. However, note that you should keep receipts for all
expenses, driving logs to support mileage deductions, lease and insurance payment details, bank and credit card statements, etc. for support if you are selected for an audit.
See IRS publication 583 for detailed information on record keeping and tracking expenses.
For a complete checklist of what you will need to complete your individual tax return, refer to
your local CPA, H&R Block or tax software for guidance.
Tap the bonus section below to download the complete guide to rideshare taxes + Uber driver tax tips checklist and a list of 16 tax deductions.