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Anyone Know How to Get a Corrected 1099?

Bevital

Active Member
Anyone know how to get a corrected 1099 from Uber (besides trying Customer Service line). The 1099s the Uber issued 1099 shows the gross amount paid by customer, not what Uber paid me. I know I can deduct the expenses on form C, however in New Mexico they want Uber drivers to pay Gross Receipts Tax (on the Gross Amount). For example, Uber charged my PAXs $50,000 for my services, but only paid me $25,000. NM wants me to pay the Gross Receipts Tax on the $50,000 . . . so a corrected 1099 is very important.
 

ZenUber

Well-Known Member
That doesn’t sound right. If you were never in possession of the 50k, you are not responsible to account for it.
 

Launchpad McQuack

Well-Known Member
Uber charged my PAXs $50,000 for my services, but only paid me $25,000.
From an accounting standpoint, Uber doesn't pay you anything. The passengers pay you for the rides, and you pay Uber to find the passengers for you. Uber processes all of the transactions on your behalf, and rather than depositing $50k in your bank account and then billing you for $25k they just deduct the $25k before they deposit the money in your account. But if you want to understand the way the accounting is done, you should always think of it as the customer paying you and then you paying Uber. So $50k is your gross receipts.

NM wants me to pay the Gross Receipts Tax on the $50,000 . . . so a corrected 1099 is very important.
If NM truly makes you pay taxes on gross receipts, that's pretty messed up. $50k would be your gross receipts. Before you run with that, though, you should do more research and make sure this is really the way NM does things. I don't know jack squat about NM taxes.
 

UberTaxPro

Well-Known Member
Past Sponsor
Anyone know how to get a corrected 1099 from Uber (besides trying Customer Service line). The 1099s the Uber issued 1099 shows the gross amount paid by customer, not what Uber paid me. I know I can deduct the expenses on form C, however in New Mexico they want Uber drivers to pay Gross Receipts Tax (on the Gross Amount). For example, Uber charged my PAXs $50,000 for my services, but only paid me $25,000. NM wants me to pay the Gross Receipts Tax on the $50,000 . . . so a corrected 1099 is very important.
Yes, @Launchpad McQuack is correct, the 1099 you received is your gross sales amount. Here's some info on the NM gross receipts tax:
http://www.tax.newmexico.gov/Businesses/gross-receipts.aspx
Most business people in NM have the opportunity to add this tax to the price of their service or product. With Uber handling all the accounting you don't have that opportunity. Be sure that Uber hasn't paid this already for you (I doubt it but be sure). If they haven't you might have grounds for passing this tax onto Uber because Uber usurped the ability for you to pass the cost onto the customer.
 

Jenga

Member
The whole "Uber is not a transportation service" is a complete scam. The ONLY control drivers have over their situation is when to work, and which rides to accept/reject - and even that must be done with extremely limited information, since Uber/Lyft WITHOLD the full details for their own benefit, and at the expense of the drivers, manipulating them into rides they wouldn't really choose with the full information. Drivers DO in actuality (regardless of the BS TOS agreement) work for these companies. The proof is that the companies retain FULL control of the fees charged, rates paid out, ride assignment, and can pay themselves bonuses through surge pricing, changing fares at their whim, and are sole arbiter of disputes by the drivers. In regular employment, employee vs. independent contractor is largely based on control. The choice of where/when to work are primary in deeming one an "independent contractor" for most normal occupations. However, rideshare is not a normal occupation. A truly self-employed person can choose which job to do based on direct contact with the client, gets to set their own rates, make their contracts DIRECTLY with the clients (not through an intermediary which creates a proxy contract with the client), and is free to take/reject new jobs without fear of reprimand by a man-in-the-middle dictating whether or not they can continue to work the next day. This designation of "technology company" is a sham. These services are - in every meaningful way - TRANSPORTATION companies, since they MANAGE the parties' relationships, and have complete control of EVERY aspect of the finances. It will not end well for these companies when they are re-classified!
 

L DaVinci

Well-Known Member
Anyone know how to get a corrected 1099 from Uber (besides trying Customer Service line). The 1099s the Uber issued 1099 shows the gross amount paid by customer, not what Uber paid me. I know I can deduct the expenses on form C, however in New Mexico they want Uber drivers to pay Gross Receipts Tax (on the Gross Amount). For example, Uber charged my PAXs $50,000 for my services, but only paid me $25,000. NM wants me to pay the Gross Receipts Tax on the $50,000 . . . so a corrected 1099 is very important.
No one knows how to get anything from Uber, even people within Uber’s Corp HQ are clueless.
 

LADryver

Active Member
This is just ten shades of wrong. I used to work for the IRS and I can imagine the conversations I would have about this, laughing as it goes. First of all, if Uber is issuing 1099's based on what the riders paid, they are not taking any income tax liability of their own. Here is the scenario, they collect x number of dollars, and they write off as expense, the full x dollars, passing it along to drivers as their own income instead, then at the end of the day they have no income from driver activity. If this is really the process, there is bound to be a reckoning.

If you are certain of this, then in order to get a corrected 1099, which reflects YOUR gross receipts as paid to you by Uber, send an email to them and ask them to review your account for a correction.
 

Seamus

Well-Known Member
That doesn’t sound right. If you were never in possession of the 50k, you are not responsible to account for it.
Not the way it works. You must not have done rideshare taxes yet. If Uber receives 25k from pax on the rides you gave and you received 17k of that deposited to your bank you will get a 1099k for $25k. The income summary will show fees of 8k which you will deduct on your schedule C. So yes, you will get a 1099k for more than you actually received and must account for it.
 

Seamus

Well-Known Member
This is just ten shades of wrong. I used to work for the IRS and I can imagine the conversations I would have about this, laughing as it goes. First of all, if Uber is issuing 1099's based on what the riders paid, they are not taking any income tax liability of their own. Here is the scenario, they collect x number of dollars, and they write off as expense, the full x dollars, passing it along to drivers as their own income instead, then at the end of the day they have no income from driver activity. If this is really the process, there is bound to be a reckoning.

If you are certain of this, then in order to get a corrected 1099, which reflects YOUR gross receipts as paid to you by Uber, send an email to them and ask them to review your account for a correction.
For tax purposes Uber and Lyft classify themselves as "Payment Processors" only and that is why you get a 1099k for income driving Pax.(over 20k) You get that for Gross Receipts Uber received from Pax for your rides. They then deduct their cut in the form of fees and that is they actual cash you receive.

You deduct those service fees on your schedule C along with your other deductions. You pay tax on your Business Income and Uber Revenue is the Fees they charged you.
 

LADryver

Active Member
Anyone know how to get a corrected 1099 from Uber (besides trying Customer Service line). The 1099s the Uber issued 1099 shows the gross amount paid by customer, not what Uber paid me. I know I can deduct the expenses on form C, however in New Mexico they want Uber drivers to pay Gross Receipts Tax (on the Gross Amount). For example, Uber charged my PAXs $50,000 for my services, but only paid me $25,000. NM wants me to pay the Gross Receipts Tax on the $50,000 . . . so a corrected 1099 is very important.
Your gross receipts are what you were paid. Uber's gross receipts are what Uber was paid. You are undoubtedly not taxed on Uber's Gross Receipts.
 

Jenga

Member
For tax purposes Uber and Lyft classify themselves as "Payment Processors" only and that is why you get a 1099k for income driving Pax.(over 20k) You get that for Gross Receipts Uber received from Pax for your rides. They then deduct their cut in the form of fees and that is they actual cash you receive.

You deduct those service fees on your schedule C along with your other deductions. You pay tax on your Business Income and Uber Revenue is the Fees they charged you.
Yes, and if you make less than 20k, you're on your own to figure it out. Payment processors my ass!
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You can not mix modes for a distribution. If you have a distribution from a partnership you


Your gross receipts are what you were paid. Uber's gross receipts are what Uber was paid. You are undoubtedly not taxed on Uber's Gross Receipts.
"Use tax" is not the same as "income tax"! It's on the FULL amount, and there are no deductions! What should happen in states like NM is that the "use tax" (which is NOT an income tax) should be added to the fare up front by whoever collects the fare (Uber). Then that tax goes directly to the state, and since Uber is collecting the fare, they must apportion the tax from BOTH their share, and the driver's share, and send it to the state. That is the law. But since Uber is the collector of the tax, I believe they are liable for it in full.
 
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LADryver

Active Member
Uber makes more than one misclassication. Good news while it lasts, while these 1099k's are coming out, the recipients get their on-app miles listed. Woohoo! That is your business miles on which you take your mileage rate. But you also have to claim the reimbursement of miles as income in order to back them out. However, AB5 and IRS will eventually eliminate all 1099's from Uber in California.
 

Dekero

Well-Known Member
Anyone know how to get a corrected 1099 from Uber (besides trying Customer Service line). The 1099s the Uber issued 1099 shows the gross amount paid by customer, not what Uber paid me. I know I can deduct the expenses on form C, however in New Mexico they want Uber drivers to pay Gross Receipts Tax (on the Gross Amount). For example, Uber charged my PAXs $50,000 for my services, but only paid me $25,000. NM wants me to pay the Gross Receipts Tax on the $50,000 . . . so a corrected 1099 is very important.
That's bout some bs. you didn't make 50k let Uber pay taxes on their part... Sounds like some double-dipping BS to me.... Tax commission gets paid on Uber portion and then they tax you again for the same amount....ummm thats as no for me...they'd have to kick rocks...
 

Jenga

Member
MAJOR SCAM ALERT!

Ok, this situation is far worse than I imagined. What Uber/Lyft are doing is CRIMINAL! Watch how this really breaks down. In states where a use tax or excise tax needs to be collected, here is what the state requires:
An excise tax needs to be collected on the gross amount of all goods and services offered to the general public. Let's use an example of 7% excise tax (sales tax). So for every $1,000 in total ride fares,$70 needs to be collected and passed through to the state. (Note that if it is not added to the sale, it must come out of the sale itself.)

And here are the steps that SHOULD be taken:
1. Every ride should have the tax (in this case 7%) added to the total and be paid by the rider. For a $10 ride, 70c needs to be collected. Total collected should be $10.70
2. The excise tax should be held by the collector of the tax (Uber/Lyft) and reserved to pay to the state taxing authority. Remember this is NOT an income tax, so not a tax on either gross or net driver income!!!
3. Since the tax was added to the total ride (less tolls), then the total fare remains $10.70 - .70 = $10.00.
4. The fare is then split with Uber getting $3.33 and driver getting 6.67 (this split is just an example).
5. Now when Uber processes the transaction, they should be giving driver the $6.67 plus the $.70 for a total of $7.37.
6. Net result: Rider pays the full tax of 7%, Uber and driver each pay 0%

But here's what ACTUALLY happens:
1. Uber/Lyft does NOT add the tax to the fare total and collects only $10.00
2. The tax is NOT collected or held and therefore must be taken out of the total FARE instead!
3. So for the $10 ride fare, we have to fractionalize it this way: $10.00 - .70 = $9.30 because the .70 is still due to the state off the top.
4. But instead of taking their cut out of the remaining $9.30, Uber/Lyft still take their fee from the gross fare and retain $3.33 even though it should be only $3.10 using the pro-rata formula. Now they give the driver only $6.67 - same as before but NOT adding the tax because they never collected it on the driver's behalf.
5. So the driver now has to deduct the .70 from his piece of the pie like this $6.67 - .70 = $5.97
6. Net result: Driver pays the full 7%, rider and Uber both pay 0%
7. But that 7% is actually 10.5% of the driver pay!!!

What?????

Understand the math of this. Since Uber didn't either collect the tax, nor pay their SHARE of the tax (1/3 in this example), now the driver has to pay the FULL excise tax out of their reduced portion. .70/6.67 = 10.49%
Do you see what just happened? The driver's tax went from 0%, not to 7%, but all the way to 10.5% !!!
It's a double whammy, because the RIDER should have paid the tax up front, Uber should have collected it, and given it to the driver. But instead they never collected it at all, and now the DRIVER has to pay not just the tax on their own portion, but the tax on Uber's portion!!!!! Uber pays zero, rider pays zero, and driver pays 10.5% of his NET income.

If your sales tax is higher then it's far worse than this.
If the "service" Uber portion is higher, than it's far worse than this.

Please understand, this excise tax is NOT federal income tax, and is NOT state income tax. It is a sales tax and you will need to pay your income tax on the remaining 90% after already paying the excise tax out of your own pocket - which never should have been the case, except that these companies are riding on our backs, calling the shots, and whipping us like jockeys on a damn racehorse!

This is a pure and evil scam folks! These companies should not get away with this!

THERE NEEDS TO BE A CLASS ACTION FORCE UBER/LYFT TO COLLECT AND PASS THROUGH THESE TAXES!
 
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Jenga

Member
You could have saved us all from having to read all that by just saying UBER is f****** everyone. ONE SENTENCE...
But you already knew that. This is showing another even more devious way to steal a huge % of our money, and this is a CRIME. They should never get away with. They are counting on their sheep to be ignorant, and incapable of seeing what they think they are so arrogantly hiding from us!

I don't know about you, but my tips average about 10%. This is EXACTLY like stealing ALL my tips from me!
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By the way, I think in my state it would be 100% legal to surcharge the riders at the point of sale on each ride. I'm considering doing this since our "Payment Processors" are failing to do their job!
 
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Jenga

Member
OOPS!
Ok, after further due diligence, I now must self correct for reporting in error. It turns out, at least in my state, that even though Uber does not put a tax on the ride ticket for pax or driver, THEY are liable for the entire tax! And they must pay it. The state taxing authority put out a bulletin that clarifies the law: As long as the Transportation Network Company (TNC) is LICENSED in the state, and they either set the rates or process the payments, then the TNC is responsible for the sales tax on the entire fare! Driver must pay an additional "wholesale rate" on only the driver net portion. This does not include the tip, however. Driver must pay the full sales tax on tips - but that makes sense since Uber does (or at least should) pass that through in full. So there you have it!

It also completely inverts my formula. So, for instance in the state of CA, if the sales tax in the county totals 10%, then instead of driver paying 15% of driver net to the tax hounds, it's Uber that pays a whopping 30% of their net to the state! Now add 3% for Visa/MC processing fees and that's 33% of their take that disappears!
 
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