Does an Uber Driver Qualify for the 20% PassThru Biz Deduction?

Home Fairmark Forum Other Tax Topics Does an Uber Driver Qualify for the 20% PassThru Biz Deduction?

This topic contains 3 replies, has 2 voices, and was last updated by  Kaye Thomas 1 week, 2 days ago.

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  • #1756

    kaneohe
    Participant

    Also what about other Sch C self-employment?

    #1757

    Kaye Thomas
    Moderator

    Except for certain enumerated professions, anyone engaged in a trade or business other than as an employee is eligible for this deduction. Uber drivers are not employees, and they are not in any of the listed professions, so they’re eligible for the deduction. If their income is above a threshold amount, they may see the deduction reduced or eliminated due to limitations based on factors such as W-2 wages paid by the business, but I’m thinking there aren’t many Uber drivers with income at those levels.

    • This reply was modified 1 week, 2 days ago by  Kaye Thomas. Reason: Edited to clarify: limitations apply above threshold income
    #1759

    kaneohe
    Participant

    Thanks, Kaye. I’ve never seen an answer so short and sweet. Most of the articles I’ve read start out sounding like yours but then go on to confuse the issue by hemming and hawing about the various conditions so in the end I had to come here for clarification.

    #1760

    Kaye Thomas
    Moderator

    This is the value of editing. My first shot at answering this question wasn’t as clear as it should have been, but I realized that shortly after posting and rewrote it as above.

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