San Francisco-based ride-hailing companies Uber and Lyft both consider their drivers as self-employed contractors rather than employees. However, you can still get the services of a Tax ID filing service to get your documents in order.
Neither Uber nor Lyft drivers need the Tax ID Number (also called the Employer Identification Number) of the companies they drive for. This is more applicable for traditional workers who accomplish the more common form W2.
These drivers should file taxes as one having a self-employment income and ask Uber or Lyft for their form 1099-K with their personal SSN on it. This will be the basis of the driver’s individual tax return and a copy of this should already have been sent to the IRS.
New Regulations
Drivers who received payments from the previous year should expect to receive their Form 1099-K by the last day of January. The form 1099-K helps drivers filing for their voluntary tax compliance by providing information on payment transactions made to them by Uber or Lyft.
Unless, of course, the driver has earned less than $20,000 and received less than 200 payments for driving services, in which case the form 1099-MISC should be used.
Of course, if this is all Greek to you, just hire a Tax ID filing service to handle this.
In the first year, the self-reporting process could be especially overwhelming. The Tax ID Filing Service aims to simplify the government forms required to start a business. And as self-employed contractors, Uber or Lyft drivers fall under their specialty which is “new business owners.”
Another company that could help with filing taxes is GovDocFiling. They have been helping clients just like you for many years get their tax information in order. Make sure you’re ready for these new regulations by contacting GovDocFiling.
