Because you are considered an independent contractor, no taxes are taken out of your payouts. The bad news, though, is that you can be surprised by a big tax bill if you don’t make estimated tax payments. Talk with a tax advisor, who can help you make estimated tax payments during the year. Let’s explore how to minimize the tax burden that rideshare drivers often face.
The American Rescue Plan Act expands the child tax credit for tax year 2021. The maximum credit amount has increased to $3,000 per qualifying child between ages 6 and 17 and $3,600 per qualifying child under age 6.
If you’re eligible, you could receive part of the credit through advance payments of up to
A few years ago Credit Karma launched a free credit monitoring service to help you get your finances on track. They didn’t have any hidden fees, just good advice and a good service with some advertising designed to help you meet your financial goals. Now, they’re taking that business model and helping consumers file their taxes online – for FREE.
Uber, Lyft and Rideshare drivers generally receive two forms at the end of the year – a 1099-K and a 1099-MISC. The 1099-K reports the total amount received from passengers for the rides provided. The 1099-MISC reports any other income that received, including non-driving bonuses and referral income.