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January 31, 2021
Question

No vehicle deduction for this Kia Optima! I drove over 14,000 miles for Lyft and Uber together and the system says I can't deduct it! Why is this happening?

  • January 31, 2021
  • 1 reply
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1 reply

JohnB5677
January 31, 2021

Yes, you do qualify to take the mileage deduction for your Lyft and UBER expenses.  However, you must post it in the right place, and in the correct software.

 

The IRS considers you an independent contractor, this classifies you as a self-employed individual operating your own business. The IRS refers to this as conducting business as a sole proprietorship. You should note that all driving services income you earn, whether through Uber or Lyft, also fall under this same business.

 

You will need TurboTax Self-Employed to correctly post this.

Report your 1099-K by following these steps before you enter any expenses:

·         Click on Federal Taxes

·         Click Wages & Income

·         Under All Income, click Show all income

·         Scroll to Self-Employment, click Start

·         Click Yes to Did you have any self-employment income or expenses?

·         Enter any income from sales or services. Say "Yes"

One thing Uber drivers need to be aware of is that the 1099-K (and 1099-MISC) you receive shows the total amount that Uber collected for your ridesit does not have their fees, commissions, safe rider fees or phone rental payments taken out. You need to deduct those as part of your business expenses along with the mileage you drove. 

 

Also see 1099-K for UBER of Lyft

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