If you deliver for Uber Eats, understanding your tax obligations is crucial. As an independent contractor, Uber Eats does not withhold taxes from your earnings. Instead, you’ll receive a 1099 form, which you’ll need to file your taxes correctly. This article will guide you through obtaining your Uber Eats 1099 and what you need to know about filing your taxes as a delivery driver.
What is an Uber Eats 1099?
A 1099 form is a tax document issued to independent contractors who earn at least $600 from a company within a tax year. Uber Eats issues two types of 1099s to eligible couriers:
- 1099-NEC (Nonemployee Compensation): If you earned $600 or more from fares, promotions, or referrals, Uber Eats will issue this form to report your earnings.
- 1099-K (Payment Card and Third-Party Network Transactions): If you earned at least $20,000 in delivery payments and completed at least 200 transactions in a year, Uber Eats will issue this form.
Not all couriers will receive both forms. If your earnings are below the required thresholds, you may not receive a 1099, but you are still responsible for reporting your income.
How to Get Your Uber Eats 1099
Uber Eats provides 1099s electronically through the driver dashboard or via mail. Here’s how you can access it:
- Log into your Uber Driver account.
- Navigate to the Tax Information section.
- Look for the available 1099 forms and download them.
- If you opted for mail delivery, check your mailbox after Uber Eats’ tax form release date (usually in late January).
If you do not receive your 1099 and believe you should have, contact Uber support for assistance.
Understanding Tax Deductions for Uber Eats Couriers
Since Uber Eats couriers are independent contractors, you can deduct various business expenses to lower your taxable income. Common deductions include:
- Mileage: You can deduct the miles driven for deliveries. The IRS standard mileage rate changes yearly, so check the latest rate.
- Vehicle Expenses: If you use your car for deliveries, you can deduct gas, maintenance, insurance, and depreciation.
- Bike & Scooter Costs: If you deliver by bike or scooter, you can deduct related expenses like repairs and maintenance.
- Phone & Data Plan: If you use your phone for Uber Eats, you can deduct a portion of your bill.
- Tolls & Parking Fees: Any tolls or parking expenses related to deliveries are deductible.
- Uber Eats Fees & Commissions: Uber Eats takes a portion of your earnings as a service fee, which can be deducted as a business expense.
How to File Your Taxes with an Uber Eats 1099
When filing your taxes, report your Uber Eats earnings on Schedule C (Profit or Loss from Business). You’ll also need to calculate and pay self-employment taxes using Schedule SE. If you expect to owe more than $1,000 in taxes, consider making quarterly estimated tax payments to avoid penalties.
Final Thoughts
Understanding your Uber Eats 1099 is essential to staying compliant with the IRS. Keep accurate records of your earnings and expenses, and consider consulting a tax professional to maximize deductions and minimize liabilities. With proper planning, filing your Uber Eats taxes can be straightforward and stress-free.