Turbo tax self employed discount11/20/2023 Similarly, if your non-driving income was less than $600, you might not get a 1099-NEC. For tax years prior to 2023, the threshold is more than 200 transactions and more than $20,000 in payments. There is no threshold for payment card transactions such as credit card swipes. If the rideshare operator processed more than $600 in third-party payment transactions in tax years beginning in 2023, then you should get a 1099-K. This money is income to report on Schedule C. Payments for other activities, such as referrals or non-driving-related bonuses, are reported on Form 1099-NEC (1099-MISC in prior years).Your rideshare operator will provide you a tax summary you can use to translate the 1099-K information into some of the income and expenses to report on Schedule C. This will likely be more than you actually received in payment, since it includes the rideshare company's commissions and other expenses.The amount shown in Box 1a of this form is all the money that the rideshare operator collected from customers for rides that you provided. Payments for processing your customers' payments are reported on Form 1099-K. Rideshare companies generally distribute these forms according to the same criteria: If you're accepting ridesharing fares more than occasionally, you may be required to file quarterly estimated income taxes.Īt tax-filing season each spring, you'll be reporting your self-employment income and expenses on Schedule C, as well as filling out Schedule SE for self-employment tax if your net income from the work is $400 or more.Īs a contractor, you won't get a W-2 form from your rideshare operator, but you will likely receive one or more 1099 forms. Combined, these taxes can easily reach 30% to 50% of your income, so make sure to set aside money to pay them. It's up to you to take care of federal and state income taxes, as well as Social Security and Medicare. So when you receive a payment, understand that it's not a traditional "paycheck," and likely no taxes have been taken out. As far as the rideshare company is concerned, you're the owner of a separate business that it uses to provide driving services. Being an independent contractor means that you're self-employed.
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