Is it true if you made less than 5,000 dollars you don’t have to pay income taxes

DrivingSolo

New Member
I heard this a few weeks ago from a guy who does both Lyft and Uber. He told me that if you made less that 5K a year you don’t have to pay any taxes but you still have to report them anyway.

I drove for Lyft for a month and a half starting in late September to early November. The other day I added all my weekly earnings from begging to the last day I drove. It was just a little over 1,800$ dollars . I haven’t done Lyft since November but still curious if Lyft will send me the 1099 anyway. This was also the first time I drove for Lyft.

I know we have until April to file them. But just want to get advices from people who filed ridesharing taxes before
 

Older Chauffeur

Well-Known Member
I heard this a few weeks ago from a guy who does both Lyft and Uber. He told me that if you made less that 5K a year you don’t have to pay any taxes but you still have to report them anyway.

I drove for Lyft for a month and a half starting in late September to early November. The other day I added all my weekly earnings from begging to the last day I drove. It was just a little over 1,800$ dollars . I haven’t done Lyft since November but still curious if Lyft will send me the 1099 anyway. This was also the first time I drove for Lyft.

I know we have until April to file them. But just want to get advices from people who filed ridesharing taxes before
Too many things enter into the process of filing taxes determining if and how much you will be taxed. For starters, was this your sole income for the year, or is it in addition to a regular W-2 job(s)? Was the $1800 your gross ( the amount deposited into your bank account) or is it your net, after deducting mileage and other eligible expenses?
What’s your filing status? Single, or married filing jointly with a spouse who has income?
If this is your first time filing you should consider getting help from a tax professional, which I am not. :wink:
Your friend is correct in that if you are otherwise required to file, you do need to report all earnings, whether or not you owe taxes in the end.
if you decide to do your returns yourself programs such as TurboTax will walk you through it, asking you questions about your filing status, earnings and expenses to determine what you owe.
Even if you don’t owe income taxes on your ride share earnings, if you net $400 or more, you will have to pay self employment cont to Social Security and Medicare totaling 15.3%.
 

Stevie The magic Unicorn

Well-Known Member
Too many things enter into the process of filing taxes determining if and how much you will be taxed. For starters, was this your sole income for the year, or is it in addition to a regular W-2 job(s)? Was the $1800 your gross ( the amount deposited into your bank account) or is it your net, after deducting mileage and other eligible expenses?
What’s your filing status? Single, or married filing jointly with a spouse who has income?
If this is your first time filing you should consider getting help from a tax professional, which I am not. :wink:
Your friend is correct in that if you are otherwise required to file, you do need to report all earnings, whether or not you owe taxes in the end.
if you decide to do your returns yourself programs such as TurboTax will walk you through it, asking you questions about your filing status, earnings and expenses to determine what you owe.
Even if you don’t owe income taxes on your ride share earnings, if you net $400 or more, you will have to pay self employment cont to Social Security and Medicare totaling 15.3%.
HOWEVER the the earned income tax credit can wipe out what you owe, especially if you have a little foal or 3 running around.

Another thing that can wipe out what you owe is the premium tax credit.

So it's very possible that if your a retired old fart that you might not owe anything if your eligible for one or both of the above.
 

islanddriver

Well-Known Member
First thing you need to do is go online with Uber and lift and get your year end pay and tax statement. To see the if 5000 is what you really made or what they put on you bank account. It could be much higher like 9000 then you have to deduct Uber fees on your schedule C form .
 

Stevie The magic Unicorn

Well-Known Member
file for free through IRS site
https://www.irs.gov/newsroom/use-irs-free-file-to-file-taxes-for-free

Join the millions of Americans who safely file their taxes and save money using IRS Free File. Taxpayers can use either name-brand software or fillable forms – for free. Combining IRS Free File with direct deposit is the quickest and safest way to get a refund.”
Does it have Schedule C? And other things needed for small business?

I have Thousands of dollars in car rentals i need to write off.
 

LADryver

Well-Known Member
Here is the answer you need: Self-Employment income of any kind whether you get a 1099 or sell lemonade, whether you operate a car or run a store, has its own category for filing due to Social Security. It is called Self Employment Tax and is computed on a form called Schedule SE. You must include a Schedule SE anytime you have self employment income $400 or more. The law states that this is your gross income before deductions. If you write it all off in deductions you include Schedule SE for information and will owe nothing. This has nothing to do with filing status or age. The Schedule SE is the reason why you would be required to file a tax return.
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Does it have Schedule C? And other things needed for small business?

I have Thousands of dollars in car rentals i need to write off.
You could look and see. The place for an unseasoned tax filer is at a reputable professional, where you can learn by asking questions and make sure they look up anything they do not know. It is easier to learn from a point of knowledge as they can, instead of a point of ignorance like you start with. When done right, the tax preparer and the client get smarter
 
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Uber's Guber

Well-Known Member
I’m not a tax professional, anything I say can’t be considered as such. If 5K is your total household income, you will declare that amount when you file and you will be labeled impoverished and most likely not subject to paying any tax on that meager pittance of income. Furthermore, you most likely qualify for housing & food stamp subsidies so you don’t freeze or starve to death. Be well!
 
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