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urge99
October 3, 2020
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How to record ridesharing income in quickbooks online.

  • October 3, 2020
  • 1 reply
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I'd like to record rideshare (Uber/Lyft) income as Sales - Services. 

 

In the case of Lyft, the weekly payout lands in my business checking account every Tuesday. In trying to assign a category to the deposit in the bank register, "Sales (Income)" is the closest option - despite the fact I setup a category in Sales - Services for Lyft. 

 

Perhaps I'm thinking about this all wrong. Intuitively, I'm selling a service...a ride. So shouldn't that income be captured as such (Sales - Services)? 

 

Here's the bottom line: I want to accomplish 2 things -

1) Recognize the Lyft rideshare income correctly in Quickbooks Online.

2) Have that income show up on the "Sales" dashboard widget. 

 

Do I need to create phantom invoices or receipts? Seems crazy to think this would be the case.

 

I can't be the first person who has had this question...so hopefully I'm just terrible at searching the support database and someone has a few answers. 

    Best answer by Rea_M

    Let me share details about handling Lyft rideshare income in QuickBooks Online (QBO), @urge99. With this, you'll be able to determine how to record one accordingly and file the right amount of your taxes to the agency.

     

    Recording your Lyf rideshare income in QBO isn't the same as your sales transactions. It falls under the rules for a 1099-K for driving services and a 1099-MISC for any other payouts (i.e. new city bonuses, mentoring, referral fees, etc.).

     

    The income that'll show up on the "Sales" dashboard widget is only your recorded sales transactions (i.e. invoice and sales receipts). This means your Lyft income won't be included in it

     

    Furthermore, I'd also recommend consulting your accountant in recording and assigning a category to your Lyft income in QBO. This will ensure your books are accurate and taxes are calculated correctly.

     

    I'm also adding this article to learn more about the tax forms for Lyft taxes: Understanding the Different IRS Tax Forms. It carefully describes the four types of forms like 1099-MISC, 1040 Schedule C, 1040-ES, and 1040 Schedule SE.

     

    Please let me know if you have other concerns. I'm just around to help. Take care always.

    1 reply

    R
    Rea_MAnswer
    October 3, 2020

    Let me share details about handling Lyft rideshare income in QuickBooks Online (QBO), @urge99. With this, you'll be able to determine how to record one accordingly and file the right amount of your taxes to the agency.

     

    Recording your Lyf rideshare income in QBO isn't the same as your sales transactions. It falls under the rules for a 1099-K for driving services and a 1099-MISC for any other payouts (i.e. new city bonuses, mentoring, referral fees, etc.).

     

    The income that'll show up on the "Sales" dashboard widget is only your recorded sales transactions (i.e. invoice and sales receipts). This means your Lyft income won't be included in it

     

    Furthermore, I'd also recommend consulting your accountant in recording and assigning a category to your Lyft income in QBO. This will ensure your books are accurate and taxes are calculated correctly.

     

    I'm also adding this article to learn more about the tax forms for Lyft taxes: Understanding the Different IRS Tax Forms. It carefully describes the four types of forms like 1099-MISC, 1040 Schedule C, 1040-ES, and 1040 Schedule SE.

     

    Please let me know if you have other concerns. I'm just around to help. Take care always.

      U
      urge99Author
      October 5, 2020

      Hi Rea - Thank you so much for the comprehensive reply/answer to my questions. Much appreciated. I'll review the various resources you pointed me to and consult further with an accountant should I have more questions.

      M
      Mjmurphy20
      January 23, 2021

      Hey I have the same question - what did you decide to do?

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