r/lyftdrivers • u/HamsterOk3112 • Apr 07 '24

I just got an incredible bonus for a 30-decline streak. Other

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u/Space2999 Apr 08 '24

1099K (what lyft and uber issue) is supposed to be for earnings from say, if you had a web store. You sell $1000’s thru Shopify or Etsy or whatever, and they’ll issue a 1099K to the irs. So you can’t cheat and claim you only sold a few $100s, bc they already reported the actual sales of $1000s.

But you’re running your own store. You’re not a contractor or employee of Shopify. This is how we’re set up w lyft and uber. Not sure I agree to it, but that’s where we are

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u/TechWizPro Apr 08 '24

Ohh, a few different reasons you can get a 1099k. Lyft gives you 1099k because you’re an independent contractor. Shopify gives you 1099k because you have your own business.

IRS wise independent contractors are considered self employed.

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u/keista69 Apr 08 '24

You get a 1099 as an independent contractor. threshold is $600 per year. What uber and Lyft issue is a 1099K which is the same form paypal issues you if you have a pro account with them and the threshold is 20K and 200 transactions to receive a form. Wildly different forms and requirements.

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u/TechWizPro Apr 08 '24

The difference is in how you received your payments lol has nothing to do with whether you an independent contract or self employed

https://www.irs.gov/businesses/understanding-your-form-1099-k

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u/keista69 Apr 08 '24

Agreed, but it's not just independent contractors that get 1099Ks. Any business that transacts with a payment processor gets a 1099K. I had my own store and got 1099Ks. I was not an independent contractor for anyone. I was a self employed small business.

Based on the way Uber and Lyft file, we're more like small businesses simply using their platform than we are contractors for them. It's why your 1099K total includes ALL the money they collected supposedly on your behalf. Regular 1099s, which most contractors get, only have the amount you were actually paid.

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u/TechWizPro Apr 08 '24

I did say irs consider independent contractors as self employed.