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I just started with Uber Eats. How do I files taxes on that?

Forum|Forum|2 years ago
October 25, 2023
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I lost my main job and just started doing Uber Eats deliveries. How do I go about filing my taxes on that and what would I need for it?

THanks!

Ask the Experts - Extension - Sept 2023

Best answer by carolineb

Hi MemphisDad,

Since you are now a subcontractor, all of your income and expenses will be reported on a Schedule C when filing your individual return. Usually, for food delivery companies, you will only receive Form 1099-NEC (if you earned more than $600), not Form 1099-K. In the case of UberEATS, if you earn at least $20,000 in delivery transactions (delivery fees and customer tips) and complete at least 200 deliveries, you will receive Form 1099-K. You will report the income shown on these forms on Schedule C, then you will write off any out of pocket expenses that you incurred while earning this income during the tax year, such as:

Vehicle mileage (be sure to keep a written log of business miles driven, or use a mileage tracking app. You will also need to know the TOTAL miles, not just business miles, placed on your vehicle for the year)
Tolls, parking fees, and interest paid on your vehicle loan
Supplies necessary to deliver food (coolers, hot packs, etc. plus cleaning supplies for your vehicle)
Uniforms that designate you as an UberEATS driver (shirts, hats, etc.)
Any UberEATS platform fees charged against your income

Any business profit will be subject to federal income tax, self employment (SS and Medicare) taxes, and state income tax depending on your state of residence. Any business losses can offset other taxable income such as wages, interest, dividends, etc.

Be sure to reach out for live help from a TurboTax agent when filing your return, and we can jump in to assist you with setting up your initial Schedule C.

carolinebAnswer

Hi MemphisDad,

Since you are now a subcontractor, all of your income and expenses will be reported on a Schedule C when filing your individual return. Usually, for food delivery companies, you will only receive Form 1099-NEC (if you earned more than $600), not Form 1099-K. In the case of UberEATS, if you earn at least $20,000 in delivery transactions (delivery fees and customer tips) and complete at least 200 deliveries, you will receive Form 1099-K. You will report the income shown on these forms on Schedule C, then you will write off any out of pocket expenses that you incurred while earning this income during the tax year, such as:

Vehicle mileage (be sure to keep a written log of business miles driven, or use a mileage tracking app. You will also need to know the TOTAL miles, not just business miles, placed on your vehicle for the year)
Tolls, parking fees, and interest paid on your vehicle loan
Supplies necessary to deliver food (coolers, hot packs, etc. plus cleaning supplies for your vehicle)
Uniforms that designate you as an UberEATS driver (shirts, hats, etc.)
Any UberEATS platform fees charged against your income

Any business profit will be subject to federal income tax, self employment (SS and Medicare) taxes, and state income tax depending on your state of residence. Any business losses can offset other taxable income such as wages, interest, dividends, etc.

Be sure to reach out for live help from a TurboTax agent when filing your return, and we can jump in to assist you with setting up your initial Schedule C.

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RyanH5

First of all, I am sorry to hear that you lost your employment.

Instead of a W-2 at the end of the year, Uber Eats will issue you a 1099-NEC that will report the total amount of earnings you had for the year. They will also make available a summary of your mileage and the fees that they withheld. You will need these whenever you prepare your return. You should also keep your own log of business and personal miles driven on your vehicle.

Uber Eats considers its drivers to be contractors, since you can pick and choose what deliveries you take. For tax purposes, contractors are considered to be self employed and will need to file their tax returns accordingly. This can be done with TurboTax online using the Premium package, or with TurboTax Desktop using the Home and Business package.
Self employed individuals can deduct business related expenses from their business income. These are going to be the fees deducted, vehicle expenses (mileage), and any other ordinary expense that you incur to help you conduct your job.
Self employed individuals also do not have tax withholdings and may be required to pay estimated taxes quarterly. To get a good estimate of how much estimated taxes may be due, you can use an online tax calculator such as our Tax Caster. They are also subject to the Self Employment Tax. To see more information about the SE tax, please see here.

I hope this helps.
Ryan

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W

wayneblough

Uber says no 1099-NEC, 1099-MISC nor 1099-NEC were issued. I made Gross Trip Earnings of $818.98 and Additional Earnings + $3.58. Do I enter those in TurboTax as if I DID receive a 1099-NEC?

thanks. Wayne

carolineb

Hi @wayneblough !

That is correct, you will enter the amounts earned as Income on your Schedule C, just choose General Income rather than 1099-NEC or 1099-MISC income. Uber should have sent you a year end summary showing their fees, which you will enter as Miscellaneous Expenses, and the year end summary should also show the amount of business miles driven in order to earn that income which you can use when entering your Vehicle expenses.

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