Since Uber and Lyft do not take out taxes from our earnings, it’s up to us as drivers to track our expenses and file taxes. While that may seem like a daunting task, there’s actually an easy way to track your expenses and file your taxes. Senior RSG contributor Christian Perea shows us how to set up QuickBooks Self-Employed, start categorizing and tracking expenses, and see the big picture when it comes to our earnings and expenses.
Uber and Lyft do not cover income taxes from the money you earn while rideshare driving.
However, they still report your income to the IRS by filing a 1099 or two in your name. That 1099 tells the IRS how much Uber paid you. As independent contractors, we’re responsible for doing the rest of our taxes by reporting income, expenses, deductions, and keeping records.
I’ve personally been using QuickBooks Self-Employed since 2014 because it eliminates A TON of the headache that comes with tracking every penny that goes in and out of my car. I can set rules for every expense that comes through my bank account, and then I have it automatically categorized to count as a deduction on my taxes at the end of the year.
Overall, I now spend about half an hour each week “handlin’ my books” because QuickBooks Self-Employed does such a good job at automating most of my work.