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urge99
Level 1

How to record ridesharing income in quickbooks online.

I'd like to record rideshare (Uber/Lyft) income as Sales - Services. 

 

In the case of Lyft, the weekly payout lands in my business checking account every Tuesday. In trying to assign a category to the deposit in the bank register, "Sales (Income)" is the closest option - despite the fact I setup a category in Sales - Services for Lyft. 

 

Perhaps I'm thinking about this all wrong. Intuitively, I'm selling a service...a ride. So shouldn't that income be captured as such (Sales - Services)? 

 

Here's the bottom line: I want to accomplish 2 things -

1) Recognize the Lyft rideshare income correctly in Quickbooks Online.

2) Have that income show up on the "Sales" dashboard widget. 

 

Do I need to create phantom invoices or receipts? Seems crazy to think this would be the case.

 

I can't be the first person who has had this question...so hopefully I'm just terrible at searching the support database and someone has a few answers. 

Solved
Best answer October 03, 2020

Best Answers
Rea_M
Moderator

How to record ridesharing income in quickbooks online.

Let me share details about handling Lyft rideshare income in QuickBooks Online (QBO), @urge99. With this, you'll be able to determine how to record one accordingly and file the right amount of your taxes to the agency.

 

Recording your Lyf rideshare income in QBO isn't the same as your sales transactions. It falls under the rules for a 1099-K for driving services and a 1099-MISC for any other payouts (i.e. new city bonuses, mentoring, referral fees, etc.).

 

The income that'll show up on the "Sales" dashboard widget is only your recorded sales transactions (i.e. invoice and sales receipts). This means your Lyft income won't be included in it

 

Furthermore, I'd also recommend consulting your accountant in recording and assigning a category to your Lyft income in QBO. This will ensure your books are accurate and taxes are calculated correctly.

 

I'm also adding this article to learn more about the tax forms for Lyft taxes: Understanding the Different IRS Tax Forms. It carefully describes the four types of forms like 1099-MISC, 1040 Schedule C, 1040-ES, and 1040 Schedule SE.

 

Please let me know if you have other concerns. I'm just around to help. Take care always.

View solution in original post

9 Comments 9
Rea_M
Moderator

How to record ridesharing income in quickbooks online.

Let me share details about handling Lyft rideshare income in QuickBooks Online (QBO), @urge99. With this, you'll be able to determine how to record one accordingly and file the right amount of your taxes to the agency.

 

Recording your Lyf rideshare income in QBO isn't the same as your sales transactions. It falls under the rules for a 1099-K for driving services and a 1099-MISC for any other payouts (i.e. new city bonuses, mentoring, referral fees, etc.).

 

The income that'll show up on the "Sales" dashboard widget is only your recorded sales transactions (i.e. invoice and sales receipts). This means your Lyft income won't be included in it

 

Furthermore, I'd also recommend consulting your accountant in recording and assigning a category to your Lyft income in QBO. This will ensure your books are accurate and taxes are calculated correctly.

 

I'm also adding this article to learn more about the tax forms for Lyft taxes: Understanding the Different IRS Tax Forms. It carefully describes the four types of forms like 1099-MISC, 1040 Schedule C, 1040-ES, and 1040 Schedule SE.

 

Please let me know if you have other concerns. I'm just around to help. Take care always.

urge99
Level 1

How to record ridesharing income in quickbooks online.

Hi Rea - Thank you so much for the comprehensive reply/answer to my questions. Much appreciated. I'll review the various resources you pointed me to and consult further with an accountant should I have more questions.

Mjmurphy20
Level 1

How to record ridesharing income in quickbooks online.

Hey I have the same question - what did you decide to do?

einaf639
Level 2

How to record ridesharing income in quickbooks online.

I have the same question too and for the life of me, I don't understand why it's so hard to find an answer for this anywhere with all the thousands of Uber, Lyft, GrubHub, DoorDash, Instacart, Shipt, etc drivers out there. Is no one categorizing their income? Am I supposed to just leave it as "Uncategorized Income?"

RLJ336
Level 1

How to record ridesharing income in quickbooks online.

If the uber service income is attached to the LLC business being documented in QuickBooks, then I would think creating a service invoice would be appropriate. The unique question would be how to account for the service fees already deducted by the third party app- as this would just be a line item in the invoice. This is the only way I can see bank reconciliation adjustments being implemented correctly. Is there another way to document the income and third party fee using service sales that would be more appropriate? For LLC umbrella it would all be submitted via 1099. This is known. But capturing appropriately in service income with appropriate bank reconciliation is the challenge. Thank you!

RachG
Level 1

How to record ridesharing income in quickbooks online.

Did anyone find an answer to this situation?

 

When I review the weekly Uber pay statement - there are many other line items that should be included on the books eg Uber's fee, customer promotions, etc.Is the solution to create an invoice each week and manually enter the info? Surely there is a way to integrate all the data from Uber's pay statements into QBO???

JuliaMikkaelaQ
QuickBooks Team

How to record ridesharing income in quickbooks online.

I can see how significant your data from Uber's pay statement integrates into QuickBooks Online (QBO), @RachG. I'll share another workaround to help you achieve your goal.

 

Aside from manually creating an invoice to enter the info and record the income, you can look for third-party applications to gather your data from Uber and transfer it to QBO. I'll write down the steps to help you get an app that provides your business needs:

 

  1. Access your QuickBooks Online company.
  2. Go to the Apps menu in the left navigational bar.
  3. Select the Find Apps tab.
  4. Enter a keyword in the search bar or hit the Browse category button to filter the results.
  5. Once you've found the app, click on it, then press Get app now.

    1.png

    An alternative way to find a 3rd party app is to visit our official QuickBooks App Store through this link: https://quickbooks.intuit.com/app/apps/home/

     

    On the other hand, you could also import the transactions from the pay statement in the program. Please follow the correct CSV format of the file and upload it in the Bank transaction. However, these transactions won't be seen in the Sales menu as they're made outside QuickBooks.

     

    If you prefer to have them reflected in the Sales menu, consider importing the transactions using the Import Data tool. With this feature, you can make an invoice spreadsheet and upload it. Here are the following information needed in the columns:

     

    • Invoice number
    • Customer
    • Invoice date
    • Due date
    • Item Description
    • Item amount

     

    Then, proceed with the guide below:

     

    1. Go to the Gear icon and select Import Data.
    2. Click Invoices, browse your computer file for the spreadsheet data, and hit Next.
    3. Map the column headers with the invoice fields, then tick Next.
    4. Press Start import.

      import tool.png

     

    In addition, we recommend visiting these articles to help you handle bank transactions and reconcile an account inside QBO:

     

     

    Recording the invoice payments will also help make your accounts accurate, as it marks the transaction as paid.

     

    We look forward to helping you again if you need assistance handling your business income or have any additional QuickBooks-related questions.

RachG
Level 1

How to record ridesharing income in quickbooks online.

I haven't found any apps that pull in Uber pay data. Any recommendations?

SirielJeaB
QuickBooks Team

How to record ridesharing income in quickbooks online.

Let me answer your question about app integration in QuickBooks Online (QBO), RachG.

 

We're unable to provide a specific app that you can incorporate with your QuickBooks Online (QBO) to manage the Uber pay data. However, you can search online or talk to your bookkeeper. They may suggest or give an app that you can utilize to compile Uber data and transfer it to QBO.

 

Once everything's good, you can run reports to track your invoices and have an overview of your business finances.

 

Keep in touch if you need more assistance with importing data or if there's something else I can do for you. I've got your back 24/7. Have a good one. 

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