Tax Tips for Uber Drivers in Canada
Everything you need to know about doing your taxes as a rideshare driver
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So you’ve taken the plunge and joined the rideshare economy. Congrats!
Key Takeaways
1. If you work for a ridesharing app like Uber, all your earnings are taxable, and it’s recommended you put 25% of your income aside for the taxman.
2. Driving for a rideshare app requires you have a GST/HST number from Day One.
3. Being a driver for a rideshare app has different tax implications than being a courier for a food delivery service. Understanding the difference upfront can help reduce headaches and penalties at tax time.
How Much Taxes Do Uber Drivers Pay?
It’s recommended you set aside at least 25% from your net business earnings (not the gross amount) for taxes owing.
What If You Deliver for an Online Food Ordering Company like Uber Eats?
The Canada Revenue Agency (CRA) looks at being a ‘courier’ for a food delivery app and being a ‘driver’ for a ride sharing app as two different business activities, so differ for each. If you’re classified as a courier, you’re in luck: GST/HST registration is not necessary until your income surpasses $30,000.
Do Uber Drivers Pay Taxes?
Contrary to popular belief, yes they do. When you’re a driver for a ridesharing company, you’re considered an independent contractor, not an employee, of the company. This means the company doesn’t withhold taxes from your income on your behalf and means you’ll need to report money you make from rideshare driving as self-employment income.
What Information and Uber Drivers Need to File Taxes?
To report your income to the Canada Revenue Agency (CRA), complete and submit along with your.
To do this, you’ll need to gather the following information:
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Your annual tax summary from the rideshare company (or companies) that you work with
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Receipts, bills, and statements for all of your tax-deductible expenses
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Your total vehicle mileage for the year as calculated from the odometer reading at the beginning of the year and the odometer reading from the end of the year
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The number of kilometres that you drove for business use and personal use
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Your Social Insurance Number (SIN)
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Your GST/HST number (business number)
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Any other tax documents and receipts that are related to your employment as a rideshare driver (e.g. any amount of tips you’ve made)
What Expenses Can Uber Drivers Claim?
Deductible expenses are what helps lower your tax owing, so be sure to not all of which are obvious. These include:
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App Fees (including service fees, booking fees and other fees such as airport, city or split fare fees)
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Gas, oil, windshield washer fluid, brake fluid, antifreeze and other maintenance expenses
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Repairs and routine oil changes
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Tires (including the cost of balancing/installation)
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Lease payments
How do I file my taxes with FYN iQ?
1. Getting started: Head over to FYN iQ and hit “get started” on your preferred FYN iQ product. You’ll be directed to log in to your Uber account for a quick verification. Just use your uber credentials to sign in.
2. Linking your Uber Account: Once you’re in FYN iQ, answer a few simple questions about your tax situation. Next up you will be taken to the Uber Connect page. Hit “connect account, type in your Uber details one more time, and you’re good to go!
Do Rideshare Drivers Have to Charge and Claim GST/HST?
Ridesharing drivers are subject to the same regulations as taxi operators, which means every dollar of their income is subject to GST/HST.
In addition to, rideshare drivers are required to charge, collect, report and remit GST/HST on every fare. These requirements apply no matter how much – or little – income you earn from ridesharing.
The amount of GST/HST you need to charge on fares varies by province. For example, the GST/HST rate in Ontario is 13%. You can view the.
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