702-796-1040
QuickBooks@kattax.biz
  • Home
  • Services
    • Tax Preparation and Planning
    • Tax Resolution
    • Bookkeeping
    • Payroll
    • Consulting for QuickBooks®
    • Training for QuickBooks®
    • Xero Cloud Accounting
    • Cloud Accounting
  • QuickBooks Products
    • QuickBooks Online
    • QuickBooks Desktop
    • QuickBooks Enterprise Solutions
    • QuickBooks Payments
  • Industries
    • Services
    • Construction
    • Medical and Health Care
    • Real Estate
    • Non Profit
    • Retail
    • Restaurant
    • Manufacturing
    • Wholesalers and Distributors
    • eCommerce
  • Testimonials
  • Resources
  • Blog
  • About us
  • Contact
  • Client Portal
  • Home
  • Services
    • Tax Preparation and Planning
    • Tax Resolution
    • Bookkeeping
    • Payroll
    • Consulting for QuickBooks®
    • Training for QuickBooks®
    • Xero Cloud Accounting
    • Cloud Accounting
  • QuickBooks Products
    • QuickBooks Online
    • QuickBooks Desktop
    • QuickBooks Enterprise Solutions
    • QuickBooks Payments
  • Industries
    • Services
    • Construction
    • Medical and Health Care
    • Real Estate
    • Non Profit
    • Retail
    • Restaurant
    • Manufacturing
    • Wholesalers and Distributors
    • eCommerce
  • Testimonials
  • Resources
  • Blog
  • About us
  • Contact
  • Client Portal

Moonlighting in the Gig Economy and Taxes

January 31, 2019 In Tax

Are you one of the thousands of people who are working gig-type jobs for Uber, Lyft, DoorDash, Grubhub, or companies like them? Whether you’re full time or just moonlighting a few hours a week, the paperwork for this part of your taxes will be a little different. Here’s what to expect. 

What Documents Will You Receive?

Both Uber and Lyft provide two different tax forms:

  • 1099-K, which reports the grand total of fares for rides that you provided
  • 1099-MISC, which lists the amount you’ve earned from incentives and referrals.  If you’ve earned less than $600 in incentives and referrals, a 1099-MISC will not be issued.  Check your tax summary to see whether you have income to report in addition to the income listed on the 1099-K

To calculate the gross income amount, add the amount listed in box 1a on the 1099-K form and the amount listed in box 7 of the 1099-MISC form.

What Expenses Should You Keep Track Of?

You can deduct certain items you spend on your job as long as you keep good records and receipts. Here are a few items you might have been charged for:

  • Commissions and fees taken by the ridesharing service
  • Tolls and parking fees
  • Convenience items for passengers, such as water or gum
  • Bookkeeping fees and bank charges
  • Vehicle costs (lease payments, gas, maintenance and repairs, car registration, insurance)
  • Mileage (listed in your driver summary as “on trip mileage”)
  • Cell phone expenses (business use percentage)

How Your Income Is Calculated

We will use the information you provide to calculate your net profit—that’s why it’s crucial that you keep detailed records and accurately capture your expenses.  We’ll enter your gross income and subtract expenses, leaving you with net profit.  You pay two types of taxes on your net profit:

  1. Your regular tax rate (based on your income level) and
  2. Self-employment taxes.  Since you are self-employed, you are responsible for paying the employer’s share of taxes, which is currently 15.3 percent of your income.  This is over and above the amount of tax you pay based on your tax bracket.

Be prepared this tax season by keeping your expense receipts and records and being ready for your tax bill.

Monthly Archives

Categories

  • Accounting (22)
  • Blog (3)
  • Bookkeeping (1)
  • Bookkeeping Tips (6)
  • Business Development (14)
  • Business Growth (7)
  • Business Tips (49)
  • Classes (1)
  • Cool Tech Tools (10)
  • Cost-Saving Tips (1)
  • Cost-Savings Tips (1)
  • Customer Service Tips (4)
  • Decision-Making Tips (2)
  • Expense Reduction Tips (3)
  • Income Taxes (2)
  • Management Tips (10)
  • Marketing Tips (1)
  • Money Management (1)
  • News (1)
  • Payroll Tips (1)
  • Personal Development (2)
  • Profitability Tips (9)
  • QuickBooks Help (2)
  • QuickBooks Software (1)
  • Social Media (1)
  • Tax (34)
  • Time Management Tips (4)
  • Training (1)
  • Uncategorized (1)

Sitemap

  • Home
  • Services
  • QuickBooks Products
  • Industries
  • Resources
  • Testimonials
  • Blog
  • About Us
  • Contact
  • Client Portal

Contact Us

Tax Services, Accounting Services and Services for QuickBooks®

KatTax, Business & Financial Services LLC

4735 S Durango Dr Suite 120, Las Vegas, NV 89147

Kathy Apfel 702-796-1040 Ext. 106
Larry Eisenzimer 702-796-1040 Ext. 105

QuickBooks@kattax.biz


Intuit, QuickBooks, and QuickBooks ProAdvisor are registered trademarks of Intuit Inc. Used with permission under the QuickBooks ProAdvisor Agreement.

Client Login

Client Portal Login

Copyright KatTax, Business & Financial Services LLC 2020 | Disclaimer | Site Design by Accelerator Websites