Most Uber and Lyft drivers are sole proprietors who will report their ride share earnings on their Schedule C tax form, but some of you may have an LLC, corporation, or other tax entity that you prefer to operate under. It’s a smart move — by taking your Uber and Lyft earnings under the umbrella of a corporation, you can lower your tax bill.
Neither Uber nor Lyft makes it totally clear how to have your earnings filed under your Employer ID Number (EIN) or another tax ID. And after you do figure out how to navigate each Uber & Lyft’s tax reporting system, there’s often not a lot of reassurance that you’ve done it right and everything will be correctly reported at tax time.
I’ve operated as an Uber and Lyft driver under my S-Corp for a few years now, so I’ll walk you through how you can let Uber and Lyft know that you are operating under an EIN or another tax classification. And I can tell you what happens at tax time each year.
Which tax classifications does Uber accept?
Uber will allow you to operate under many different tax classifications. Most drivers will fall under individual/sole proprietorship, but Uber also allows drivers to operate under the following tax classifications.
- Individual/Sole Proprietor
- C Corporation
- S Corporation
- Limited Liability C Corporation
- Limited Liability S Corporation
- Limited Liability Partnership
- Disregarded entity
How to submit your EIN to Uber
You can let Uber know that you are operating as a business entity by going to vault.uber.com. It’s a nice system that lists all banking and tax options in one form. It immediately displays all of your changes, so you can be sure that Uber correctly received your EIN.
- Log in at partners.uber.com
- Click the Banking tab
- Under Bank Account Details, click Edit
- Scroll to Tax Information and select your tax classification
- Enter your EIN in the “Employer ID Number” box
- Click save, and if prompted to enter a pin, check your text messages to retrieve the pin
How to submit your EIN to Lyft
Lyft’s banking features aren’t as fully-developed as Uber’s, but you can still successfully give Lyft your EIN from the Lyft dashboard in the “Tax Info and Payments” section. Here’s how.
- Log in at Lyft.com
- On the left menu, click “Payout Information”
- Under “W-9 Information Form,” click Edit
- This will open up a new form. Select Corporation/LLC from the drop down and enter your EIN
- Enter your electronic signature and submit
Lyft’s system never displays any part of your EIN displayed on screen after you submit it, and if you re-click “Edit Tax Info,” the EIN field is blank. It makes you feel like Lyft hasn’t correctly received or stored your info, which is not reassuring. But in my experience, Lyft does receive and use the info you input.
What happens at tax time?
One of my fears when I first created my S-Corp was that Uber and Lyft would file a 1099 under my SSN, and I’d either have to spend time correcting that with Uber and Lyft or pay the higher tax rate of a sole proprietor.
Neither company spells it out in huge letters that you’ve correctly listed your EIN, and they don’t specifically say that your income will be reported to your EIN. For a new corporation holder, that might be scary. It was for me.
In my experience, despite the lack of reassurance, both companies sent me a 1099 in January that listed my EIN and corporation name rather than my SSN. I’ve learned that companies don’t need to send a 1099 to a corporation, but Uber and Lyft do anyway. I appreciate getting the 1099s because they reassure me that the income has been properly attributed to my EIN.
So when you file your taxes or have someone else prepare your taxes, you can be assured that the IRS knows that your income is tied to your EIN, not your SSN.