From Salem-News.com — Drivers for Lyft and Uber are independent contractors and responsible for their own taxes. This article provides some guidance for these drivers:
“Independent contractors will soon deal with some very specific tax issues.
(SALEM, Ore.) – We’ve written before about how the issues of liability, insurance and accountability have proven extremely problematic for Uber and Lyft, two taxi-like companies that are trying to integrate themselves into the Oregonian (Portland, Salem and Eugene specifically) market.
The problems do not stop there, though and they do not stop with the CEO’s and state officials. The independent contractors who are hoping to earn a living by driving for these independent and “alternative” companies will soon start having to deal with some very specific tax issues too.
Drivers who sign up to transport passengers via the Lyft and Uber systems are employed as independent contractors. On the surface this looks pretty great: use your own car to drive people around, charge whatever you want (within the company’s guidelines) and viola! You’re employed again, and on your own terms. You make your own schedule, you can wear whatever you want, etc.
It also means that, if you are an independent contractor for Lyft or Uber that you are responsible for all of your own taxes and, make no mistake, independent taxi driving does generate taxable income.
When you are employed by a company, that company’s HR and accounting department are in charge of your tax support. They make sure that your federal, state, social security, medicare, etc taxes are taken out of your paycheck correctly and on time. When you are an independent contractor, you have to do all of that yourself….”
Read the full story at More Problems for Uber and Lyft Drivers in Oregon