DO YOU DRIVE FOR UBER, LYFT, AMAZON, DOORDASH OR ANOTHER PLATFORM?
Here's what every driver should have ready when it's time to file taxes.
1. Income • Annual income summary from Uber, Lyft, etc. (Found in your account on each app. Usually called "Tax Summary".) • 1099-NEC or 1099-K forms o Uber, Amazon, DoorDash and Lyft will give them to you if you earned more than a certain amount.
For deductions, choose between deducting actual vehicle expenses or miles driven. Usually, the most convenient option is to deduct miles.
2A. Vehicle Expenses These help reduce your taxes. Save receipts or records of: • Gas • Car maintenance (oil, tires, repairs) • Car wash • Auto insurance • Cell phone (a portion if you use it for work) • Fees or commissions charged by the apps • Vehicle taxes for the car you work with It's important that all these expenses are organized by category so your tax appointment is faster and more efficient!
2B. Miles Driven • Total miles driven for work: o Uber, DoorDash and Lyft send an email with that information, or you can download it from the app • For Amazon and Spark Drive you must track them manually because they don't provide the miles. • Or download a separate mileage tracking app (like Stride, Everlance or MileIQ) or write them down manually. (We recommend MileIQ because it provides a detailed report.) • This is key because you can deduct per mile driven (a fixed amount per mile).
Have questions? Call us at 314-330-4425. At Rangel Tax Group we speak your language and understand your taxes!
RESOURCES: For people who use their vehicle for work or business, we recommend apps like MileIQ to automatically and neatly track the miles you drive throughout the year. It can help you keep clearer, more organized records for tax season. Use our link to get 20% off: https://mileiq.com/lp/referral?referrerParseId=8WcrmqR2EeexZxLrE8-nqA
