Originally Posted by ronnyeicher
As someone who drives for Lyft what records and receipts to I need to be keeping. Thanks for any help!!
As far as I know, in general, The irs regards taxi drivers as self-employed and are classified as a sole proprietor of a business. If a taxi driver leases his cab from a fleet owner, he must file two different forms, Sch C of Form 1040aslongas the amount on Sch C linre 29 / 31 is $ 400 or exceeds $400 and Sch SE of Form 1040 aslongas the amount on Sch SE line 2 / 3 is $400 or exceeds $400 . If the taxi driver owns his own cab then he must also file Form 4562 in addition to the two previous forms. It is important to complete the forms in the following order: Sch C of Form 1040 , Form 4562 , if applicable, and then Sch SE of Form 1040 as said above. So as a self employer, a cab driver needs to pay estimated taxes to IRS/state aslongas you expect to owe tax of $1K(after subtractions of credit ) or more when you file your return.However, You do not have to pay estimated tax for the current year if you had no tax liability for the prior year; You were a U.S. citizen or resident for the whole year; Your prior tax year covered a 12 month period. So, as a self employed employee, you are responsible for your own taxes. Lyft and Uber pays you your full wage and its up to you as a driver, to pay your own taxes; You can deduct following your biz related expenses1. The money you pay as a taxi driver to rent your taxi from a fleet is tax deductible. You need to keep track of what the fleet company charges you for your taxi each day. Total up your expenditures for renting or leasing your cab at the end of the year. 2; Your auto insurance expense should not include health insurance, but if you have to pay insurance for your taxi, you can deduct it. You need to find out how much of your payments to the company cover insurance.3; any fees you pay to drive a taxi are deductible. This may include not only your taxi license but any extra charges you pay to have a special driver's license. Licenses are a form of tax that you pay, and you may deduct these payments.4; many commercial taxis accept credit cards now. The companies that process credit cards charge a transaction fee, which comes out of your earnings. You can deduct all transaction fees for credit cards from your taxes.Also if you are a member of a trade organization, union or association related to driving a taxi, you can deduct the expense of membership. You may write off any membership dues, union dues or association fees from your taxes on your SchC. As you you own/ lease the vehicle, you may take ONLY actual expenses which include gas, oil, maintenance, depreciation, etc., or you may NOT claim mileage. Once you decide to use ACTUAL expenses such as gas, repairs, maintenance, depreciation, etc., then, you have to continue using actual expenses for the life of the vehicle or until you stop using it, whichever comes first. expenses as it is much beneficial for you in terms of cutting your tax liability on your return.
NOTE;Since it is a "for-hire" vehicle you cannot take the standard mileage, but must use actual expenses.