Lyft Tax Documents For US Driver usually use 1099K but there are more available documents for Lyft drivers. Commonly, Lyft drivers will receive 1099-K and 1099-NEC and Annual Summary Documents. So, it is important to understand the forms, what information inside it, and how to use them for this tax season.
Are you a Lyft driver? Or perhaps planning to be one anytime soon? One of the things that many Lyft drivers overlook is taxes. You need not do the same, of course. We are here to help you better understand working as a Lyft driver and paying taxes. Here are some things you should know about Lyft tax documents.
How Are Lyft Drivers Classified?
First, you should know that Lyft drivers are not employees of Lyft. As such, Lyft drivers are not entitled to worker’s compensation, benefits, or unemployment insurance. The question is, how are Lyft drivers classified?
Lyft drivers are classified as independent contractors. In other words, if you are a Lyft driver, you are self-employed. You are basically running your own business using Lyft as the platform.
Because you are self-employed, you need to keep track of your income and expenses as you work as a Lyft driver.
Since you are running your own business, your business-related expenses such as mileage, Lyft service fees, cell phone, parking and tolls, supplies, car washes, and roadside assistance can become tax deductions.
Lyft Tax Documents
Because you are an independent contractor running your own business, Lyft will not send you a W-2 wage and tax statement.
After all, being a Lyft driver, you are not a Lyft employee. What you will receive is a 1099 tax document, either 1099-K, 1099-NEC, (used to be 1099-MISC), or both, depending on whether you are qualified or not.
- 1099-K Form
If you make over $20,000 in gross ride payments and over 200 transactions from riders in the last year, you are qualified to receive a Form 1099-K.
This is the requirement from IRA but there is a chance that you will get the form even if your gross payments and transactions are less than the requirement.If you are located in Vermont or Massachusetts, you will get this form if you earned at least $600.
- 1099-NEC Form
You are qualified to get a Form 1099-NEC if you earned at least $600 from non-driving earnings in the last year. Non-driving earnings are earnings you get from bonuses, weekly guarantees, referrals, and likes.
How to View or Download the Tax Documents
Lyft provides tax information to the drivers by the end of January of the following year. Your Annual Summary and any 1099 forms that you are qualified for are available in the Driver Dashboard.
You can view and/or download them via computer and app. Here’s how to do it.
Via computer
- Go to lyft.com/login and log into your account.
- Go to the “Tax Information” tab.
- Under “Documents”, click “Download” to download the Annual Summary or tax forms.
Via app
- Open your Lyft Driver app.
- Tap your profile photo, then tap “Dashboard”.
- Next, tap the menu icon.
- Tap “Tax Information”.
- Under “Documents”, click “Download” to download the Annual Summary or tax forms.
These are what you should know about Lyft tax documents. Keep in mind that while the above is meant to inform you, they are by no means tax advice.
If you want to know how to file taxes or ask about your specific tax situation, you should speak with a tax professional. We hope this helps.
