Video instructions and help with filling out and completing What Form 2220 Misc

Instructions and Help about What Form 2220 Misc

Hey what's up guys rideshare guy coming you today and i'm gonna be talking about your 2014 tax summary from uber we're gonna go over the 1099 misc and the 1099 k and basically what they mean for you guys drivers out there and also how to interpret it because as you probably realized by now it's pretty damn confusing and uber did not do us any favors as far as the calculations and/or the explanations so it's been the last few hours kind of going over this and comparing it to my actual earnings my take-home pay and statements that I got from uber and I think that I've figured it out so let's go through it together and figure it out for ourselves so the first thing you want to understand is what exactly a 1099 is now I've seen a lot of people worried that oh the number that ubers giving me on my 1099 I didn't actually make that much now it's really not that big of a deal because what a 1099 essentially is is when uber or any company for that matter issues a 1099 an official 1099 all that means is that they're also going to report whatever numbers on that 1099 to the IRS okay so that's all it means now the IRS especially when they say 1099 they know that you might have other deductions you might have expenses because you guys are all business owners right and you might you know the number that's on there if you say $10,000 uber reports $10,000 as your earnings to the IRS the IRS knows that it doesn't necessarily mean you made $10,000 right you could have you know tons of thousands of dollars in expenses and whatever and so when you do to your taxes the number you start off with the top might be 10,000 but then after all the deductions and expenses and all that good stuff that you guys you know can talk to your CPA about then down at the bottom the number that you're gonna actually pay taxes on could be very easily much less than that and if well it likely will be almost guaranteed will be if you have certain deductions and expenses right so unless I'm going to consider right there in the first place now the first thing we'll cover the 1099-misc pretty easily I already did a video breakdown that I'll leave a link to in the show notes about the difference between the 1099 K and the tonight misc and it looks like for whatever reason m ber is voluntarily giving these 1099 case every single driver you though they didn't meet the $20,000 and 200 transaction limit I have no idea why they're doing that it's more work for them I'm assuming it's somehow benefits them though or it's somehow in their favor I know that these guys wouldn't go above and beyond I'm gonna say knew there was something in it for them so let's talk about that misc first though so basically the misc is actually super simple when I look at mine it's gonna have your any of your referrals driver passenger things like that and then any other miscellaneous bonuses or anything like that but you've got for example when I first started there was a dollar per trip incentive so I think I have a bunch of those dollar per trip incentives okay so you basically take that total and the number that's in your summary on your partner dashboard those numbers are gonna match exactly what's in your official 1099 kay and miss gold at least they do on mine the total alright so that number that they're reporting the IRS that total for the misc that should actually be pretty spot-on for me at least when I look at it it's referrals and miscellaneous yeah I made that money and I don't see it accounted for anywhere else so that's money that I made now when I add the money from my ten a nine miss to my ten a nine K and I compare that to how much money I earn from uber it's a lot more right so uber is telling the IRS that I made a lot more than I actually did before I take any expenses before I take any deductions or anything like that so let's find out why okay no to be honest the easiest thing that you guys can do right now if you don't want to mess around with any of this 1089 K or 10 miss stuff just go in to your uber partner dashboard and add up all your statements right how much money did you make each statement right you should have a maximum of 52 and obviously you could do it by hand but you can also what I did was I basically just went in I copied and pasted the whole you know so from the upper left to the bottom right and it grabbed you know like 20 statements at a time or whatever and and then I basically put that into Excel and it copies over perfectly and you can just sum up all the money you made and then boom right there you have a number maybe it's $20,000 that's how much you made from Bury you don't even need to worry about the K and or the misc or anything like that as far as knowing how much money you made know for the deductions and expenses and things like that you're gonna have to make sure that you have accurate documentation to figure all that stuff out and uber now they're not really super helpful with that kind of information but hopefully you guys have been doing really good job of documentation because that's pretty much the most important thing okay so right now we're gonna go into the 1089 K breakdown if you