On-Demand Drivers 2021
Schedule C (Form 1040). You report all of your income and expenses associated with your business on Schedule C (Form 1040), Profit or Loss From Business, to determine your net profit (or loss). If you have a net profit of $400 or more, you must pay self-employment tax, which is computed on Schedule SE, Self-Employment Tax.
Form 1099-NEC. On-demand drivers may receive Form 1099-NEC if they have earned referrals, incentives, or bonuses from a ridesharing company. If you earned less than $600, the company may not issue you a Form 1099-NEC, Nonemployee Compensation, instead, you must identify (log into your account online, for example) the total amount you earned as this income must be reported in your gross profits along with your fares. The rideshare company should still provide this total to you even if it does not provide an actual tax form.