How to File Lyft Taxes Without a 1099 Form

Driving for Lyft means you’re considered an independent contractor, not an employee. This classification affects how you file taxes since Lyft doesn’t always provide a 1099 form, especially if your earnings don’t meet certain thresholds. However, the IRS still requires you to report all income and pay any owed taxes, even without this form.

Understanding how to calculate earnings, deduct business expenses, and file correctly helps you avoid penalties and maximize deductions.

How to Access Rideshare Earnings History

Lyft provides earnings history through the Driver Dashboard and app. This data is essential for tax reporting, particularly if a 1099 form isn’t issued. The dashboard includes weekly and yearly summaries, detailing total payouts, ride earnings, bonuses, and tips.

To retrieve this data, log into the Lyft Driver Dashboard on a web browser. Under the “Tax Information” or “Earnings” section, drivers can download annual summaries outlining gross earnings before deductions. While the app also provides earnings details, the web dashboard offers more comprehensive reports. Lyft allows access to past earnings statements, which can be useful for audits or financial planning.

If earnings history is incomplete, bank statements and deposit records serve as backup documentation. Since Lyft deposits payouts directly into a driver’s bank account, reviewing transaction history can help verify total income. Keeping digital or printed copies of these records ensures reported income aligns with actual deposits, reducing the risk of discrepancies.

Calculating Total Income

Total income as a Lyft driver includes all revenue streams from the platform. Ride fares make up the majority of earnings, but bonuses, cancellation fees, and referral rewards must also be included. The IRS considers all of these taxable, regardless of whether a 1099 form is provided.

Bonuses, offered for completing a set number of rides within a timeframe, can significantly impact earnings. Cancellation fees collected when passengers fail to show up or cancel too late are also taxable. Referral bonuses for recruiting new drivers or riders must be reported as income.

Tips received through the app are subject to taxation. Unlike cash tips in other industries, which often go unreported, Lyft electronically tracks and documents these gratuities, ensuring they are included in total revenue.

Estimating Business Expenses

Deducting business expenses lowers taxable income. The largest expense for most drivers is vehicle-related costs, which can be deducted using the standard mileage rate or actual expenses. For 2024, the IRS standard mileage rate is 67 cents per mile, covering fuel, maintenance, depreciation, and insurance. Drivers using the actual expense method must track costs such as gas, repairs, and lease payments.

Other deductions include phone expenses, as drivers rely on their smartphones for navigation and communication. If a phone is used for both personal and business purposes, only the portion related to Lyft driving can be deducted. Data plans, mounts, and chargers also qualify if necessary for business operations.

Tolls and parking fees incurred while driving for Lyft are deductible. Tolls paid while transporting passengers are fully deductible, but those incurred during personal use are not. Parking fees at airports or event venues while waiting for rides qualify as deductions, but traffic violation tickets do not, as fines are not deductible.

Filing Requirements and Forms

Lyft drivers report self-employment income using Schedule C (Form 1040), detailing business revenue and deductible expenses. This form calculates net profit, which is subject to income tax and self-employment tax. The latter is assessed at 15.3% under the Self-Employment Contributions Act (SECA), covering Social Security (12.4%) and Medicare (2.9%). If net earnings exceed $200,000 for single filers or $250,000 for joint filers, an additional 0.9% Medicare surtax applies.

Since Lyft drivers operate as sole proprietors, they must also file Schedule SE (Form 1040) to determine self-employment tax liability. Unlike W-2 employees, who split FICA taxes with their employer, independent contractors pay both the employer and employee portions. However, the employer-equivalent portion is deductible, reducing adjusted gross income.

Taxpayers earning above the filing threshold—$13,850 for single filers or $27,700 for married joint filers in 2023—must submit a federal return. State tax obligations vary, with some jurisdictions imposing additional business taxes. In certain states, such as California, drivers operating under an LLC may have to file additional forms, including the $800 minimum franchise tax.

Payment of Estimated Taxes

Since Lyft drivers are self-employed, taxes are not automatically withheld. They must make estimated tax payments throughout the year to avoid penalties. The IRS requires quarterly payments if a taxpayer expects to owe at least $1,000 after subtracting credits and withholding. These payments cover both income tax and self-employment tax.

Estimated payments are due on April 15, June 15, September 15, and January 15 of the following year. Failure to pay on time can result in penalties based on the underpayment amount and the IRS interest rate, which fluctuates quarterly. To determine the correct payment amount, drivers can use Form 1040-ES, which includes a worksheet for estimating tax liability. Many states also require quarterly estimated tax payments, with deadlines that may differ from federal requirements. Using tax software or consulting a professional can help ensure accurate calculations and timely payments.

Record Retention

Maintaining accurate records is essential for substantiating income and deductions in case of an audit. The IRS generally requires taxpayers to keep records for at least three years from the date a return is filed, but in cases of substantial underreporting (more than 25% of income omitted), the statute of limitations extends to six years. If fraud is suspected, there is no time limit for IRS review.

Drivers should retain digital or physical copies of earnings summaries, mileage logs, receipts for deductible expenses, and tax filings. Bank and credit card statements also serve as supporting documentation for business-related purchases. Using expense-tracking apps or accounting software streamlines recordkeeping, ensuring all necessary information is readily available if needed. Proper documentation simplifies tax preparation and provides protection in case of an audit.