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NYE Tax Tracking cutoff time?

Discussion in 'Taxes' started by El Gato, Dec 31, 2016.

  1. El Gato

    El Gato Active Member

    Location:
    Cedar Park
    Driving:
    UberX
    So I am planning on driving today as I'm sure many others are. Got me thinking though as far as tax tracking goes for this evening...

    Should I just include all miles, fares collected, etc. in this tax year until I go offline for the night, regardless if I began driving at say 9PM Dec 31, and ended at 3AM Jan 1? Or when the clock strikes midnight, should I then jot down my mileage and everything to that point is miles driven for the 31st in 2016 and miles after that are driven on the Jan 1 and will be applied to 2017? Does Uber do this as well when they send the 1099? I mean will their tax docs cut off all income earned ending at midnight will all income earned after midnight going to the 1099 for 2017?

    thanks.
     
    UberTaxPro likes this.
  2. UberTaxPro

    UberTaxPro Well-Known Member

    Location:
    CT
    Driving:
    UberX
    It really depends on how you do your books. There's two accounting methods, cash and accrual. (actually three for tax purposes, there's also a hybrid method) If you're using the cash method you'd report income when you receive it, in other words when the deposit hits your bank account. With the accrual method you'd report the income when you earn it regardless of when you actually get paid. It's important to keep the same method every year. To change methods a business must request it from the IRS.
     
    Older Chauffeur likes this.
  3. Mears Troll Number 4

    Mears Troll Number 4 Well-Known Member

    Location:
    Orlando
    Driving:
    Taxi
    The question is, because it's Fuber doing the reporting on our 1099s... when is the cutoff?
     
  4. elelegido

    elelegido Well-Known Member

    Location:
    Varies
    I'd say it's almost 100% certain that Uber uses the accrual method. If so, then the last job of the accounting year would be performed on or before 23:59:59 for the 1099s.

    
     
  5. Older Chauffeur

    Older Chauffeur Well-Known Member

    Location:
    Simi Valley Ca
    My guess is the 1099 will match the total deposits made in 2016, after deducting fees paid to Uber. I don't believe it makes any difference whether Uber uses the cash or accrual method. What's important is the method you use. Anyone who worked for Uber in 2015 ought to be able to tell easily by checking that 1099 against the deposits received.
     
    UberTaxPro and grams777 like this.

  6. Older Chauffeur

    Older Chauffeur Well-Known Member

    Location:
    Simi Valley Ca
    I've been searching for anything definitive on this subject. One page I found was about GoDaddyOnlineBookkeeping. Their instructions for filling out 1099 forms say to "set filters for January 1 to December 31." That mirrors what I found for employers issuing W2 forms, in which the date of the paycheck determines in which year it is reported. There is an exception for direct deposits, because the IRS counts it when the money is available to the employee. I would think that would apply to independent contractors as well.
    So the money deposited in your account by December 31 counts for 2016. Money deposited from January 1, 2017 on gets credited for next year.
     
    UberTaxPro likes this.
  7. UberTaxPro

    UberTaxPro Well-Known Member

    Location:
    CT
    Driving:
    UberX
    The "cutoff" depends on your books and has nothing to do with Uber. Any discrepancy between what you report and Uber reports on your 1099 will be accounted for next year. The IRS understands that businesses use different accounting methods.
     
    Older Chauffeur likes this.
  8. UberTaxPro

    UberTaxPro Well-Known Member

    Location:
    CT
    Driving:
    UberX
    C corps with average annual gross receipts of more than 5 million for the last 3 years must use the accrual method.
     
  9. elelegido

    elelegido Well-Known Member

    Location:
    Varies
    Pretty sure I grossed less than $5m this year and therefore will not have to change my accounting method.
     
    Dback2004 likes this.
  10. Mears Troll Number 4

    Mears Troll Number 4 Well-Known Member

    Location:
    Orlando
    Driving:
    Taxi
    But you were paid by one that was.
     
  11. Older Chauffeur

    Older Chauffeur Well-Known Member

    Location:
    Simi Valley Ca
    Like UBT posted, that has no bearing on the method you choose.
     
  12. El Gato

    El Gato Active Member

    Location:
    Cedar Park
    Driving:
    UberX
    So looking at my Tax Summary sheet, I notice something interesting. First, I did not drive with Uber on NYE, but I made a killing using Fare and GetMe (I work in Austin, and as I'm sure everyone knows Uber bailed back in May, but I still use them in the suburbs).

    Anyhow, I did drive earlier that week on December 30, and made out with $50.03 ($11.48 for Uber after their 20% Uber fee) on 3 trips. As I look at my Tax Summary I noticed a discrepancy from my books exactly $50.03 short in Gross Fares and $11.48 shot in my Uber Fees. So, unless this form has just yet to be updated, it would appear that Uber did not report that entire week into the 2016 Earnings, and I assume will do so for 2017 (will know for sure at the end of January when I get the 1099 and when I get the Jan summary and see if those numbers are on there).

    Anyone else with similar findings?
     
    Older Chauffeur likes this.
  13. Older Chauffeur

    Older Chauffeur Well-Known Member

    Location:
    Simi Valley Ca
    As I posted earlier, I think the earnings Uber deposited in drivers' accounts for 2016 will match the 1099s. That means the last deposit was on Thursday, Dec. 29. The exception might be for anyone taking daily/instant pay, as the IRS counts earnings by the date they were available to the earner.
     
    El Gato likes this.

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