uber/lyft driver starts with no money

Uber/lyft Driver

When you're a driver for a ride-sharing company such as Uber, Lyft, Juno, or other car sharing service, the most important thing to understand about your taxes is that you are probably not an employee of Uber, Lyft or Juno. Drivers for these companies are usually independent contractors, a fact that has tax implications, both at filing time and year-round.You're the boss AND the employeeBeing an independent contractor means that you're self-employed . As far as the ride-share company is concerned, you're the owner of a separate business that it uses to provide driving services. So when you receive a payment, understand that it's not a traditional "paycheck," and likely no taxes have been taken out.It's up to you to take care of federal and state income taxes, as well as Social Security and Medicare. Combined, these taxes can easily reach 30% to 50% of your income, so make sure to set aside money to pay them.

Driver

The status of drivers as independent contractors is an unresolved issue . Uber drivers use their own cars although drivers can rent or lease a car to drive with Uber. Uber offers car rental or leasing via Getaround, Hertz, and Fair and Uber and BYD Auto have a partnership to provide leasing of electric cars to Uber drivers in Chicago and New York City.

Drivers must meet requirements for age, health, car age and type, have a driver's license and a smartphone or tablet, and must pass a background check. In many cities, vehicles used by Uber drivers must pass annual safety inspections and/or must have an Uber emblem posted in the passenger window. Some cities also require Uber drivers to have a business license. A mechanism called "Real-Time ID Check" requires some drivers to occasionally take selfies when logging on to Uber.

Drivers use an app to receive and accept offers for transportations and further information. The Uber driver app includes accommodations for hearing-impaired drivers.