Everyone must pay tax to the government for the services it offers. Uber drivers are no exception. They have pay Uber taxes for their earning as they are considered contract workers by Uber. As for as Uber concerned, you are self-employed. So, the drivers must pay taxes to the Income Tax department. It will be better if you hire a tax assistant to manage you Uber income with other income. In this article we are going to throw some light on the taxes drivers has to pay.
Uber taxes
To avoid income Uber tax violation, you can follow the steps below
- Maintain a separate bank account for Uber earning. In this way, you can easily calculate the credit and debit from your account to manage the income efficiently.
- Register Yourself for the VAT, having a tax agent with you make things easier. You can use the old VAT number of your company for Uber transactions.
- You have to keep a record of your income simultaneously. You must bear in your mind the Uber taxes associated with this.
- Keep a separate record book. This is a best practice which will be useful for cross-checking your income.
- Keep track of your all expenses to your car. Like, car maintenance or a particular part of the car is changed.
- Always save some percentage of the amount, to pay Uber tax. Otherwise, at the last minute, you have to suffer a lot to get the money.
- Above all the things said, having tax agents with you is the best practice to get everything to perfection.
Form 1099 for US
All the expenses you are spending are tax deductible. For example, Toll, gas, maintenance charge and Insurance, commissions to the ride-sharing company.
This form 1099 is applicable for U.S. citizen to pay tax other than wages, salaries. You can download the form from the partner site partners.uber.com. You can avail electronic form of 1099 form to your email.
You have form 1099-K for the charges you make to the customer which is more than $20000. And 1099-MISC is applicable for the miscellaneous charges like referrals and it is lower than $160.
If you are not consenting to the electronic form, to your address the form will be sent to you. Getting a tax adviser is the best practice to deal with the taxes. From February 1st, 2018 you will be given online forms completely. Your taxes may vary from 30 to 50%, so it is important to allocate something for this category.
Indian rules
In India, GST (Good and service tax) is applicable to the income of drivers, so they have to register themselves for GST. You have to pay taxes annually.
The need for GST Number:
You have to provide your GST number to the Uber, if you are starting the ride with Uber. Otherwise, they will send you a form to fill up. You don’t have the GST numbers with you can get the number with the form given to you. After submitting the form, on your request, you will be provided with the GST numbers.
Uber Tax amount matters:
After the implementation of GST in India, drivers have to pay a tax amount more than the old tax amount of 14.5 percent. This adds to the EMI burden many drivers are paying, and become a serious problem for the drivers.
Tax evading will be a dangerous thing for you. If you start as the driver partners, not planning the tax payment as mentioned above, it can cost you with the large fine amount. So, the drivers must follow the above-mentioned instructions in the article to avoid tax problems.
Chatree Suphakorn says
Can I have my 1099 online please?
Thanks
Chatree