{"id":13123,"date":"2025-04-07T21:23:47","date_gmt":"2025-04-07T21:23:47","guid":{"rendered":"https:\/\/finderica.com\/?p=13123"},"modified":"2025-04-07T21:23:47","modified_gmt":"2025-04-07T21:23:47","slug":"how-to-file-your-taxes-for-uber-lyft-and-other-popular-gig-apps","status":"publish","type":"post","link":"https:\/\/finderica.com\/?p=13123","title":{"rendered":"How to File Your Taxes for Uber, Lyft and Other Popular Gig Apps"},"content":{"rendered":"\n
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\"ScoreCard<\/p>\n

The day none of us want to think about is steadily approaching \u2014Tax Day 2025. If you want to get a head start, filing is open now, but you\u2019ll have to file your 2024 tax returns by April 15, 2025, if you want to make the Internal Revenue Service\u2019s deadline.\u00a0\u00a0<\/span><\/p>\n

For gig workers who work for app-based companies like GrubHub, Lyft or Uber, you\u2019ll want to study up on the best way to file your taxes. After all, in many cases, you\u2019re considered <\/span>independent contractors<\/span> \u2014 not employees.<\/span><\/p>\n

While seasoned freelancers and gig workers likely know the drill when it comes to the process of <\/span>filing your own taxes<\/span>, it can be a daunting task for anyone new to the industry. One important rule to remember is you should report any total income of $600 or more from a client or company.\u00a0<\/span><\/p>\n

One possible reason for confusion? Your tax documents may not have arrived via snail mail (the way they typically would with a full-time employer) \u2014 especially as more and more companies start offering digital, downloadable copies of tax filing documents.<\/span><\/p>\n

Regardless, any companies you contracted have an IRS-stipulated deadline to file these forms: <\/span>Jan. 31<\/span><\/a>. In any year, if you haven\u2019t gotten anything by late February, it\u2019s a good idea to reach out to the appropriate parties.<\/span><\/p>\n

Here\u2019s a rundown of the tax forms you\u2019ll need to use as a gig worker \u2014 plus a look at the tax policies of five of the most popular gig app companies: DoorDash, Instacart, Grubhub, Lyft and Uber.<\/span><\/p>\n

Our Favorite Ways to Make Extra Money<\/h2>\n

We understand if flexibility is one of your favorite things about doing gig work for companies like Uber and Lyft. But the flexible money-making opportunities don\u2019t stop there. We compiled some of our favorite ways to make quick cash so you can boost your cashflow even more.<\/p>\n

Common Tax Forms for Gig Workers<\/b><\/h2>\n

One important note: there was a change in guidance from the U.S. Department of Labor last year on how to classify gig workers. On Jan. 10, 2024, the Labor Department <\/span>came out with a new rule<\/span><\/a> on employee vs. independent contractor classification under the Fair Labor Standards Act. This was meant to redefine a Trump administration-era change that had shifted the language of the economic reality test, essentially the main determinant of how someone is legally considered an employee or an independent contractor. In light of last year\u2019s decision, a number of gig companies, like <\/span>DoorDash<\/span><\/a>, <\/span>Uber<\/span><\/a> and <\/span>Lyft<\/span><\/a>, issued statements saying this wouldn\u2019t change much for them in terms of how they classify drivers. But given the shift, it is worth evaluating depending on the kind of gig work you did. <\/span><\/p>\n

Common Income Forms Sent to You\u00a0<\/b><\/h3>\n

Companies that paid you more than $600 in a calendar year should send you a 1099 (either digitally or in the mail), as required by law. If you work across multiple apps, it\u2019s possible you will receive a 1099 from each company. And depending on what companies you work for, you may receive up to three different types of 1099 per company.<\/p>\n

\"This
Line 1 of the 1099-NEC form is where you should see your compensation. Chris Zuppa\/The SS<\/figcaption><\/figure>\n

The 1099-NEC<\/b> was introduced in 2020 and is the main tax form that\u2019s now used to report nonemployee compensation of $600 or more, which is what the acronym NEC stands for. Many companies previously used the 1099 MISC (Box 7) to report this income. If you\u2019re an independent contractor who used to receive that form, you\u2019ll likely now receive this one instead. On this new form, employers should fill out the information with how much you earned from them in that calendar year and your billing information. If you look at your invoices and find that they have over or under-calculated, you\u2019ll need to reach out to your client\u2019s accounting department to ensure that they correct their bookkeeping and that your correct total income is reported to the IRS.<\/span><\/p>\n

The 1099-K form <\/b>is another common form sent to gig workers. Previously, workers had to meet certain thresholds to receive this form (ie. offer a certain number of rides via Lyft or Uber or earn a certain amount in a calendar year). Beginning in 2022, anyone receiving payments exceeding $600 via a third party network or debit\/credit card transactions will get this form, regardless of the number of transactions they completed. These forms <\/span>are sent directly<\/span><\/a> from the payment card companies, apps or online marketplaces from which you were paid out, rather than the client itself. But just like the 1099-NEC, these companies have until Jan. 31 to file the form.\u00a0<\/span><\/p>\n

Reporting thresholds have changed from year to year for this form. In 2024, third-party settlement organizations, i.e. payment services, are <\/span>required to report transactions<\/span><\/a> for goods or services where the total payments were more than $5,000. That number goes down to $2,500 in 2025 and $500 in 2026, so it\u2019s worth checking back each year.<\/span><\/p>\n

\"A
Line 1a of the 1099-K form is where you will find the gross amount made from card and third party transactions. Chris Zuppa\/The SS<\/figcaption><\/figure>\n

The 1099-MISC<\/b>, short for miscellaneous income, has undergone a lot of changes over the years in order to accommodate the creation of the new 1099 NEC tax form. Like we mentioned up top, this form used to be the number one tax form for gig workers and independent contractors. But in 2025? Not so much.<\/span><\/p>\n

While you may still receive this form as a gig worker, it won\u2019t necessarily be because of your job. Those receiving <\/span>the 1099-MISC<\/span><\/a> nowadays are often getting it for reasons like collecting at least $600 or more in rent, medical payments, or prizes and awards. If you do happen to get one of these forms, just remember that the amounts listed on it will need to be reported to the IRS as income.<\/span><\/p>\n

Tax Return Forms You Send to the IRS<\/b><\/h3>\n

After you\u2019ve tracked down all your 1099s and tallied up your net income, your next step is to get that number as low as possible by subtracting any and all applicable business expenses and deductions.<\/p>\n

As a gig worker, you may need to file the following tax forms with the IRS:<\/p>\n