Uber Driver Pay Errors

[Terry D EA]

Taxpayer revc’d 1099K and 1099NEC. So far so good. The amount of the taxpayers deposits received per their bank statement is approximately 26K less than the total of both forms. My first take is use the forms, but it’s hard to argue with bank statements. Yes, have all bank statements for 2021. Anyone know a contact number for Uber? I’ve done some research and can’t find anything. All else fails, I will report the income from the bank statements and wait for the CP2000. Too early in the season for this stuff.

[Lee B]

Your should have access to reports that tie to the bank deposits. Quick online search reveals that the difference is Uber's service fee

which they deduct from the gross.

 

 

 

 

 

[Pacun]

Do you have all the reports from Uber or just 1099-Misc and 1099-NEC? Ask your client to log on again and to print the rest of the report and it will match.

[Terry D EA]

I have the report from Uber and it doesn’t match the deposits. The report does match the totals of the 1099nec and 1099K. There is a huge difference that must be looked into. Again, hard to argue with bank statements 

[Lee B]

15 hours ago, cbslee said:

Your should have access to reports that tie to the bank deposits. Quick online search reveals that the difference is Uber's service fee

which they deduct from the gross

 

Terry, look online there are so many detailed explanations that you can't read them all!

[Terry D EA]

Thanks, I will be meeting with this client again on Friday. I will have her log in and look at everything we can find. I post the results.

[Terry D EA]

Update. All of the descrepancies have been resolved. FYI- The amounts reported on the 1099K form are amounts either swiped, chip read, or manual input from the customers cards. This is a gross amount and not the amount actually deposited. Uber takes significant fees from the driver's which I knew. I think the taxpayer in this case led me down the wrong road by starting this conversation stating that Uber told her these were the amounts she received which was indeed incorrect. After I deducted the UBER fees, the amounts matched the bank deposits perfectly. So, note to self, don't let the client confuse you. I feel a bit embarrassed by this but will use the excuse that this all came about at a time when we were experiencing various technology issues and my brain was partially out to lunch. 

[Lee B]

You are in good company, it happens to all of us at one time or another

[Gail in Virginia]

1 hour ago, cbslee said:

You are in good company, it happens to all of us at one time or another

Maybe we need some kind of been there, done that emoticon/reaction button. 

[Abby Normal]

On 2/1/2022 at 7:52 PM, Terry D EA said:

will report the income from the bank statements and wait for the CP2000.

Always report the 1099 amount to get by the IRS computer, then show the difference as an expense. Checks mailed late in December and not received until January, cause this all of the time.

[Sara EA]

Don't be embarrassed Terry.  Uber forms are new to most of us, and we've all learned something from this thread so we'll be better prepared.  And you of course are well-prepared for the next one.  You should only be embarrassed when you believe a client who says "my return is really simple, or "I'm head of household" (single, no dependents), or "they already took the tax out" (just the 10% early distrib, not the income tax).  Or the latest:  "I didn't get any stimulus payment."