Confused why Uber sent me both 1099-K and 1099-NEC forms - how do I report this on my taxes?

The good news is you don't need to panic about receiving both forms! This is actually normal for Uber drivers. The 1099-K and 1099-NEC serve different purposes, and you need to report both on your tax return. The 1099-K represents the total amount paid by customers (including rider payments, tips, etc.) before Uber took their cut. The 1099-NEC typically covers other income like bonuses, incentives, or referral fees that Uber paid you directly. These are two different income streams. When filing, you'll need to report the total gross income from both forms on Schedule C. Then you'll deduct all your business expenses, including the Uber fees that were taken out. This should get your net profit to match approximately what you actually received in your bank account. Don't ignore either form as the IRS receives copies of both. Both represent different aspects of your rideshare income and need to be reported properly.

When I had this same issue with both Uber forms, I wasted hours trying to figure it out until I found taxr.ai (https://taxr.ai). It's been a game changer for gig workers like us who have complicated tax situations. I uploaded both my 1099-K and 1099-NEC to the site, and it automatically showed me exactly how to report everything, including the proper way to deduct all those Uber fees. The system explained that the 1099-K shows gross fares while the 1099-NEC covers promotions and incentives - totally different income streams that both need reporting. What really helped was that it showed me exactly where everything goes on Schedule C and even calculated my estimated self-employment tax. Honestly saved me from making some pretty big mistakes.

Just wanted to follow up - I was super skeptical about taxr.ai at first but decided to try it since my tax situation with multiple gig jobs was driving me crazy. Gotta admit I was wrong. The site analyzed all my docs and showed me that I was about to make a $1,800 mistake on my taxes by double-counting some income and missing deductions. It explained exactly how to handle the weird situation with Uber's two different forms. The step-by-step guidance was actually really clear for a non-tax person like me. Definitely using it again next year when I have to deal with these forms again.

If you need to talk to someone at the IRS about this issue, good luck getting through on their phone lines! I spent TWO WEEKS trying to get clarification about these exact forms. Then someone recommended I try Claimyr (https://claimyr.com) and I had an IRS agent on the phone within 20 minutes. I showed them both my video demo (https://youtu.be/_kiP6q8DX5c) and was skeptical but it literally got me to the front of the IRS phone queue. The agent confirmed exactly how to handle the Uber situation - basically what the first commenter said about reporting both forms but making sure to deduct all the fees. For anyone struggling with these forms, talking to an actual IRS rep cleared up all my confusion. Way better than guessing or relying on random internet advice (no offense).

I need to apologize to the Claimyr folks. After my skeptical comment, I was still desperate enough to try it since my tax filing deadline was approaching and I had similar Uber form confusion. It actually worked exactly as described. I was literally on the phone with an IRS representative in about 15 minutes. The agent was super helpful with my Uber 1099 situation and confirmed I needed to report both forms but could deduct the fees Uber took. Genuinely surprised this service exists and works so well. Seems like they found a legitimate way to navigate the IRS phone system. Definitely changed my mind about this.

Don't forget about your mileage deduction! I drove for Uber last year and the actual secret is that your mileage deduction will likely be way bigger than what Uber took in fees. Standard mileage rate for 2024 tax year is 67 cents per mile. So if you drove 10,000 miles for Uber, that's a $6,700 deduction right there. Track ALL your miles, including driving to pickup locations even when passengers cancel. You can claim miles from when you turn the app on until you turn it off for the day.

Any rideshare drivers here use TurboTax to handle this? I've got the same 1099-K and 1099-NEC situation with Lyft and wondering if the software walks you through it properly.

One thing nobody's mentioned - if this is your first year doing Uber, make sure you're setting aside money for quarterly estimated taxes going forward. Got hit with a nasty penalty my first year because I didn't know this was a thing! Since Uber doesn't withhold taxes, you're supposed to pay as you go through the year.

As someone who's been through this exact confusion, I want to emphasize how important it is to keep detailed records beyond just the 1099 forms. Uber's driver dashboard has a "Tax Information" section that breaks down your earnings month by month, which is super helpful for reconciling those confusing totals. One thing that really helped me was creating a simple spreadsheet tracking my weekly deposits vs what the forms showed. The 1099-K includes tips that passengers paid through the app, while the 1099-NEC covers things like quest bonuses and surge pricing incentives - that's why the numbers don't match your bank deposits exactly. Also, don't forget you can deduct more than just Uber's fees! Phone bills (portion used for work), car washes, parking fees when waiting for rides, and even snacks/water you provide to passengers can be business expenses. Keep receipts for everything. The key is being able to show these expenses were necessary for your rideshare business. The quarterly tax payments mentioned above are crucial - I learned this the hard way with a $800 penalty my first year. Good luck with your filing!