I just recently started driving for Lyft and want to make sure I understand the taxes correctly.
This page says you can deduct either mileage or actual expenses like gas, oil changes, etc. Tax Tips for Uber, Lyft, and Other Car Sharing Drivers - TurboTax Tax Tips & Videos However, there are some on this site you seem to be saying that you can do both.
It’s my understanding that my gross income is actually the amount that the rider pays Lyft. So I everyday I add up those amounts and enter it as income in Quickbooks Self Employed. I then add all the fees taken by Lyft and put that in as a business expenses. When I subtract expenses from gross, that gives my my net which is the amount I actually got paid. Do I included tips and prime time in gross or do I need to add those in separate categories? The Top 5 Tax Mistakes Uber and Lyft Drivers Can Easily Avoid - Ridesharing Driver
Thanks for your time. I appreciate any help.