With the rise of ridesharing apps like Lyft, thousands of drivers now have reliable sources of supplementary income. But whether you drive for these services full-time or use them solely as side income, drivers are now faced with the burden of filing their taxes as self-employed workers.
Lyft drivers fall under the rules for a 1099-K for their driving services and a 1099-MISC for any other payouts (e.g. new city bonuses, mentoring, referral fees, etc.). Follow along as we outline how to read and file your Lyft 1099.
How Do I Report My Lyft 1099 Income?
First, let’s go over the types of IRS forms you may receive:
- A 1099-K is issued if you received over $600 for driving.
- A 1099-MISC is issued if you received over $600 in other types of income (e.g. referral bonuses).
Even if you don’t receive a 1099, you still need to self-report the income. You are required to pay taxes on any 1099 income you have. There is a misconception going around the Lyft community that no 1099 means no taxes; this is very incorrect and will lead to a lot of headaches for Lyft drivers. Keep in mind the IRS can audit you for up to three years (or six years if you have understated your income by 25% or more), regardless of the dollar value.