How To Report Income From Uber In A Canadian Tax Return
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- Опубликовано: 8 июн 2024
- If you are currently driving an Uber, then this video will show you how to correctly report your income and expenses in your tax return. If you enjoyed, make sure to like and subscribe!
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thank you alot your 2nd standard maths calculations actually helped me alot.
THANKS
What a intelligent young man. Good luck . I would love to subscribe for your channel.
Thank you very much.
you did such a good job sir.
Well explained. Thanks!
You're welcome!
Amazing video!!! Keep up the good work.
I am keen in learning about taxes for truck drivers and self employment ppl in construction/ electrical business, if you could make a video on that. Would be great. Thank you.
Hi Avni I am Planning to Put Episode on Owner Operated Truck Driver in next month . Rental , Self employment and Industry specific tax situations are in my list to share as well. Please continue to watch my Videos.
Hi Chaitanya! I hope you can help again! I appreciate you. I have an important question! My Uber tax summary for one month has, for instance under "Fare Breakdown," has let's say, has Gross Uber Trips Fares $2137.; Airport fee $4.12; Booking Fee $511.50 etc. Then, under the section called "Other Potential Deductions," it has "Uber Trips Service Fee" $534.00. What is the difference between Booking fee and service fees? Are they both costs I can write off, or what? Thanks in advance!! : )
You should also be able to claim an ITC on the CCA amount (depreciation) of the car. Great break down! Very clearly laid out.
I’m still trying to understand why Uber wouldn’t be charged GST on their commission...
Uber do not charge GST on driver's Commission as intermediator service .
Nice video. quick question please, in the example used, where/how did you get the 250 Gst in the income portion? is this the Gst tax on uber rides as seen in the tax summary sheet?
HI John . You are right. It is same GST on Sales as per your Uber Yearly Summary.
Do you have to separate net and GST amounts in expenses ?
Also can you claim provincial taxes?
Say I live in Quebec, here we have TVQ.
I have an expense of 100$ + 5$ GST + 10$ TVQ = 115$ Total.
Do I claim 115$ or 105 $ ?
Thank you for the video, do you have another video that shows the Uber Tax Summary and where to put the amount from the Tax Summary on the T2125. That would be so helpful. please let me know. Michelle
I will do one video in Coming December .
What if you purchased the car 4 years ago? How do you depreciate when the value is different from the purchase price or do you follow the same steps until you get to year 4?
Best video
Hi there, great video! Just one question: when you were calculating your "uber fees" (the $10,000 amount) which line items did you use. My tax summary shows gross uber rides fares, gross eats fares, split fare, miscellaneous, airport fee, booking fee, tips, referrals/incentives, uber service fees, and HST. In other words how do i calculate my net uber fees based on the previous line items mentioned. Thanks!
Hi Please add Gross Uber rides fares, Gross eats fare, Split fares , tips and Referrals and Miscellaneous . Total of all these is in my $10,000 ( Do not take airport fees, Booking fees)and Uber Service fees is your expenses
@@chaitanyastaxadventures7772 Sweet, thank you! Just a follow up on that: The HST that I calculate based on the revenue above differs from the actual HST collected (based on the Uber Tax Summary). Is that an issue and how would it impact my HST return.
Hi there. Is it better to register as a corporation or sole proprietor. I work another full time job and if I register as a sole proprietor i think thats taxed more please suggest
Hi there Chaitanya. Very helpful vid. I was so stressed re. taxes since I'm starting Uber today. I hope you don't mind my several questions. Q: If I just bought the car this year, but it's NOT a new car, so I bought it in Dec. 2020, but it is a 2017 vehicle because I bought a 'used' vehicle, then can I depreciate the whole 30%, or I still have to use only the 15% depreciation? Thanks in advance : )
You can depreciate only 15% in first year .
Thanks for the video, can you do one showing the business statement from uber and show which one is the income and which one is the expense and how to reported on T2125, thanks in advance
Hi Be. I will do one video on T2125 in my December vacation
Very clear. But I have a question on the Uber tax summary and input their values to Turbotax. It is the Gross reveune. Is the "Fare breakdown total" plus "the other income breakdown" on Summary become the "GROSS revenue". Also, after this "GROSS revenue", is it correct to look up the HST value from Uber summary.? and need to input the value to TurboTAX. What is the purpose to fill in the HST there? Does Gross revenue include the HST? any impact if I dont. Previous version of TurboTax said no need unless the GRoss you fill in include the HST. I am confused.
Hi Toni . Gross Revenue for reporting purpose as Income include Gross Uber fees , Tips , Referral fees , Split fare . Other fees like City fees, Airport fees and Booking fees are Income of Uber not drivers so do not include those fees in Gross Revenue . Do not put GST/HST to Turbo tax . You have to file GST return separately .
excellent work!. how about the rental car for uber? hertz uber partnership rents out sedan for $300+taxes for 7days.
Hi Chaitanya, thanks for the video. Great information and much help!
Quick question: I am planning on driving Uber & UberEats together, how will the taxes work and should I seperate milage and insurance? Thanks!
Uber provide Commercial Insurance while making delivery on Uber or riding passengers so you do not have to worry about claiming Insurance . Please keep your Business Mileage ( You do not have to keep Separate mileage for Uber and Uber eats ). GST is at 5% on Uber and o% on Uber Eats which Uber will give at the end of the year in Annual summary .
@@chaitanyastaxadventures7772 thank you! I saw other videos, good information and well organised. Much help!
Thank you for your sharing ! I have a question, if I have a full time job, plus 30000$ Uber and lyft $ what is the best way to report the tax (
Hi, Thank you very much for watching My Video. Another option for you is to Incorporate Business and put Uber Income in that Corporation. If Vehicle is in Personal name and You use for your Corporation, You can claim Mileage of $0.59 (2020 rate )for the first 5,000 Kilometers and after 5,000 Km, the Mileage rate is $0.53( 2020 rate ). Instead of Claiming actual vehicle expenses, sometimes this is a better option to Claim Vehicle expenses if your Vehicle expenses are not high enough. Suppose you drive 40000 km for Uber to Make $30,000, You can claim the First 5,000 kilometers, Mileage is $2,950( 5000 *0.59) and balances 35,000 kilometers, mileage is $18,550 ( 35000 *0.53) So total Vehicle Expenses as per Mileage is $21.500( $2,950+$18,550) . If you use the Mileage rate, You can't use actual Vehicle expenses ( Gas, Repairs, Insurance, and Depreciation ). To use mileage, you have to Incorporate Business and Vehicle Should be in your Personal Name ( Shareholder -Employee Name). You can't use the mileage rate in the Self Employment business.
@@chaitanyastaxadventures7772 That is a great tip. can you post a video on eligible and ineligible dividends? Are all dividends from Canadian corporations eligible?
Do I have to this for Uber Eats on Bike? I live in Toronto by the way
Hi, great videos. Can u make video for uber Walkers in Quebec province. Whether to show or not... People have so less ....how to tax file abt it? I'm working in employment and only for 4hrs i do uber walking. I'm confused whether I should show my income or not ...bcoz half of my frnds have not, others have... So please let me know as due date is coming
hey bro can u plzz tell me the name of this background music.
Hi, I am using ufile, where should I enter the car depriciation cost? for example i bought a car for 10k last year in October, how should I calculate it and where to enter?
Hi B Singh . I am not sure about Ufile . Please try to find out Addition of Vehicle on T2125 . Then Select Class 10 then Put Date of Purchase and Purchase Price.
Hi, thanks for your information, is very helpful. I have a question,
I report every year my employment income using UFILE software. Could I report my Uber eats driver income using the same software, adding this income under "SELF- EMPLOYMENT INCOME (Business Income)?. I have my business number and GST/HST account number.
T2125 form needs to be filled along with your personal income tax return.
Hi. Thank you for the instructive video. Question: Let's say you have for "phone" as expense, $1200. Does that have to be a strictly dedicated phone that you never use for personal purposes, or can you use the phone regularly for personal and professional usage and then have it as a 100% professional expense? Or, as another alternative, can you estimate the amount you use the phone for work and then only write off that percentage of the whole annual cost of using the phone (such as using the same % you use for milage)? Which method is correct? Thanks in advance. : )
Estimate is required ( Percentage of data use ) during Uber . I should go with data usage .
WELL DONE
Hello I like your video, Please tell me what is our gross income showed on tax summary. is that only gross ride fare or a total of gross ride fare+ booking fees+ tips etc
Hi Gross Income include Gross Ride fees , Referral Commission and Tips but do not include booking fees
Good, if one doesn’t include booking fees as gross income, can you still deduct it as an expense paid to Uber? Won’t this be overstating your expense and understating your income? Thanks!
Thank you, this is great. Do you know whether a uber eats driver needs a GST number?
CRA consider ubereats as Courier Service so there is Zero rated GST . But if you drive more and big Gas expenses , you can claim GST on your expenses back ( Refund ) from CRA . So if you do not get your GST number on ubereats , it's fine CRA will not come to you . But if you need GST refund for GST paid on your Phone and Gas expenses , Please take GST number .
@@chaitanyastaxadventures7772 what proof do I show for the GST expenses or how much value should I enter?
For Ubereats, you should register when you make over $30,000, as per the CRA.
Hello, thank you for the video. I have a question.
I just drive to skip the dishes for only 4 months. How to calculate my expenses? any ideas
Hi Thank you for watching Video. You can claim all Gas , Vehicle Repairs , Depreciation expenses for 4 months as discussed in this Video same way as Uber driver in proportion of your Skip the Dish Kilometers to Total Kilometers . Only thing addition is your Vehicle Insurance . You can claim your Vehicle Insurance as part of your Skip the dish expenses as against Uber where you can't claim it as Uber has their Own Insurance when you drive your Uber trip,
@@chaitanyastaxadventures7772 Hi, If I finance my vehicle, then How to calculate Vehicle depreciation.
Can you please show how to fill out the t2125 form with this numbers? Thank you.
I will come with new episode with full filing of T2125 in my December vacation
Hi, great video! Thank you... Why did you set 5% for GST? In Ontario, I think GST/HST is 13% (Fed + Provincial). Please tell me what I am missing. Thank you
He's in Alberta, Alberta taxes is 5%
I started doing uber eats in April. So for calculating the percentage my car is used for business, do I start from April or Jan?
Is there a simplified version of deducting our car mileage, as the USA has. Where we use the miles driven for business x a number of cents per kilometre?
you should start from April
Hi there. Question: for depreciation, is the purchase price of the car including tax or before tax price? Thanks in advance! : )
For anyone else who wants to know, I just googled it and it's the before tax purchase price of car, up to a maximum of $30K. Now I want to know if the 15% depreciation cut rate for the first year only applies to new cars, or used cars too.
When do you file taxes? A year after the day you first start working for uber? So for example, if I started working for uber on march 3rd, 2020, do I file the tax in march 3rd, 2021? Do we do it every year?
Hi Hanna,
The income tax return is for January-December. You have to file the 2020 tax return (from March 3rd, 2020- December 31st, 2020) by April 30, 2021.
@@chaitanyastaxadventures7772 what if you don’t do it in time
I drive regular taxi as well as Uber. Do I have to have separate gst numbers for each?
Same GST number is applicable for all businesses in your Name. You need not other GST number.
@@chaitanyastaxadventures7772 thanks
What if you do uber eats on an ebike?
Do you depriciate the ebike the same way as the car?
When buying the ebike can you right off the GST? The bike was about $2300
Hi Tido. E-bike is in class 8 assets with Depreciation rate of 20%
Read on the Uber site does this apply to British Columbia ?
Hi David . This will apply to British Columbia as well.
Should I include split fare and Booking fees in my income?
Hi Syed. You have to report Split fare not Booking fees. Uber collect Booking fees and they take it from you so it's not your Income.
Good question, but the tax summary shows the booking fees being added as income and then deducted back as an expense. So can we add it to the income and later deduct it as an expense? If not, how can we report the booking fees as an expense if same amount was added to our income when collected from riders?
One more Q. (I hope LOL): what if I make monthly payments on the vehicle (financing from bank thru Toyota), are the payments expenses, or am I strictly to use only the depreciation method? Thanks : )
Post note: I am not leasing, but, just out of curiosity, if someone was leasing, would the lease payments qualify as write-offs??
Yes. You can claim Lease payment same as other payment like Gas and Repairs Proportionately to kms drive for business as long as Lease is $840 per month . If lease is more than $840 per month , you can't claim over and above $840 per month .
@@chaitanyastaxadventures7772 TY for your time; however I don't quite understand. I live in ON (GTA) and my car financing payment is $540 per month. Can I not count that toward my expenses even though I use my vehicle for Uber driving for 95% of all my km usage? So, my monthly payment is less than $840 per month, and I am not leasing; I am financing. Thank you in advance for your help : )
@@SolutionsWithin If you finance the vehicle . You can claim Depreciation as per Video and you can claim Interest on your Vehicle loan ( Your Bank will provide you yearly interest breakdown )
@@chaitanyastaxadventures7772 Okay, so it is not allowed to write off the car's whole monthly financed amount, it's only allowed to write off the interest paid on the loan. The depreciation of the vehicle is CCA (Capital Cost Allowance) if I'm correct. Thank you for clearing that up. I do appreciate your comment responses and informative video! : )
Can we reduce the total uber expenses while we file tax and reduce the taxable income by that much of the total expenses mentioned in the video?
Hi Rony,
Uber income and expenses will go on Schedule T2125 Statement of Business Activities. Net income after expenses only comes as an income on the T1 jacket.
How would you like to report your CCA? Answers are a) i will report the totals only, b) i need to calculate the CCA. Isn't option a is the same as your example if one makes 40k, first 5k, 15% and remaining 35k, 30%
I think it is called Quick Method
Hi Shahed . If you use any software , you have to select Class of Assets ( Either Class 10- If Vehicle value is less than $30,000 or Class 10.1. if Vehicle value is over $30,000 ) and your vehicle value Once you put Class of Assets , Make and Model of Vehicle , Purchase date of Vehicle , Business kms and total kms , Software will calculate Depreciation for you .Depreciation rate for Vehicle is 30% but first year you can claim only one half ( 15% ) and it proportionate to your Business kms to total kms. Quick method is for GST calculation which I will explain in next episode.
Hello Chaitanya- I drove uber eats for two months last year. so i have to file taxes for those. but i dont have any GST number, should i get that from that number actually why i am asking is because my tax consultant did not asked me for the GST number. so i am in doubt , if it save me some bucks i will get that from CRA and file taxes on my own/
Yes you have to file along with all income from any other sources.
I did not track cost of fuel over the year for uber, dont have receipts either. What should I do to prove the numbers?
Try to estimate your expenses based on your average mileage, fuel costs, and other regular expenses.
A quick question, which form is to filed for Uber drivers. Is it T4 Or form T2125
Hi Avni Please use Form T2125 for Uber. Thank you very much .
I have a question, can we use the tax summary for our taxes because I did not receive a T2125 from uber only the summary I received.
@@shakeriaslyfe7186 You have to Use Yearly Summary for taxes . T2125 is CRA form where you have to put Uber Income and expenses. Thank you for watching Video.
@@chaitanyastaxadventures7772 Okay, so T2125 not T2125C? Is it filed as commission based income?
what happens with the tips ? they are not subject to gst/hst. do i have to take gross fares =booking fees x gst/hst amount plus tips? else tips will get gst/hst to them, please reply.
Watch this to calculate your Uber earnings (tips) ruclips.net/video/MN8yvPqPWQQ/видео.html
yo, do you get GST/HST payments from uber doing uber eats?
If your total self employed revenue is less than 30 000$, you dont need to repport GST/HST on Uber eats.
@@pabloabanto1652 IF i earn less than 30k,i mustn't pay taxes,right?
@@GUDRAT1000 You still need to report in your Income tax return, the $30,000 threshold applies only to HST registration for UberEats.
Do i have to track direct mileage or can i just keep gas receipts?
Tracking direct mileage is recommended
Nice video!! I have a question, i already make 50k from my full time job and i do Uber/Doordash as a part time and my target is make 20k from delivery job. Do you think i should open a HST account? what is your best advice. thanks
Hi Kevin . Thank you very much for watching Video ! Uber Drive is Taxi Service . You must have GST number if you Drive Uber for Passengers .Please register for GST if you Drive Uber for Passengers. Uber Eats , Doordash or Skip the dish are considered as Courier Service Where GST rate is Zero. You need to register for Courier Service only if your Gross Receipt increase over $30,000 in Consecutive 4 Quarters . So If you Drive for Delivery Service , you do not need to register for GST /HST as your Income will be less than $30,000 but If you Drive Uber for Passengers , no matter whatever your sales , you must have to register for GST/HST .
Chaitanya's Tax Adventures thanks for reply. Do i have to file tax for money i eared from uber eat and doordash?
@@chaitanyastaxadventures7772 thanks for the great video , want to be ahead of the game with taxes coming up soon and i have questions for you.... let's use the same example that you used in the video, can I claim 100% of the safety certificate Uber ask from us every year ? Can I also claim 50% of my car plates ? 50%of my Driver's licence? Thanks brother
@@kevinko1545 Yes, you have to!!
@@chaitanyastaxadventures7772 I'll be doing uber eats on an ebike part time. So the depreciation and expenses still apply. Just no GST/HST number is needed.
I earned around 116 cad from Uber in 2020. I didn’t file the tax. Will there be any penalties?
Hi Mark. Generally CRA do not come with small Income. But legally if you missed to report any income twice in a row out of three years , there is penalty of 20% per cent on missing Income plus tax plus Interest .
Is this for calgery only or apply to ontario too?
Hi . This applies to Ontario also. Only difference is HST rate in Ontario is 13% instead of 5% GST. Thanks
@@chaitanyastaxadventures7772 thanks
what is this GST that you have to call the government for?
If you want to Drive Uber drive ( Not ubereats ) , you need GST number .
Hi, Im a new ubereats driver. What is the GST # for?
Hi Cham . As a Uber Driver , You must register for GST/HST Number and Uber pay 5%( GST ) or HST (13% ) if you are in Ontario on your earnings which you have to pay back at the year end to Canada Revenue Agency.
@@chaitanyastaxadventures7772 Hi Thank you for your response. I live in BC. and I have read something that says i dont need a GST number Im not making $30,000 or more? Is this true?
Also, you mentioned Uber pay 5%? Do they give me that 5% or you meant do they deduct 5% off of my earnings?
@@chammaldo3823 what happens if you don't register for a GST number? i don't have a number as well is it free to get?
@@chammaldo3823 couriers only have to register as a business and get a GST/HST number if they earn more than $30K or something like that; passenger drivers have to have in no matter how low their earnings are.
Uber includes the GST/HST in the pay they give you (other than tips) and you are responsible for sending it to CRA. Consider your earnings to be much lower than they are and save the extra money in a separate bank account to send to CRA at the end of the year for taxes and GST/HST that is not yours to keep, otherwise it's difficult to come up with the money in a lump sum later.
@@TheJoeMoneyShow It is free to register your business and get a GST/HST number. If you drive passengers, you are responsible for sending that portion of your earnings to CRA no matter how low or high your earnings. It's best to save it in a separate bank account so it doesn't get spent and send it when you do your taxes. Then, when you pay taxes on business related expenses, you get that money back.
So, don't add anything about car insurance? Thanks
Please do not add Insurance as Expenses for Uber Drive . Reason is that when you Start on Uber , It's Uber Insurance Covers you and Passengers not your Personal Vehicle Insurance.
Do I need to report Tips on Line 10400 or on T2125?
T2125
In your excel file, 5% GST of 10k is $500 collected GST. On that column
If you subtract all the 5% GST you paid for Gas, Repair, Vehicle Depreciation that means you get a refund for GST
If GST ITC is more than GST collected , you get refund from CRA .
Can you do one for uber eats drivers
I will try to do this Long Weekend about Uber Eats/ Skip the Dishes Driver . Thanks
If I have no gst number then show my income cra ?
You still need to report in your Income tax return even if you do not have GST number .
Where do you put Uber eats service fees on your return
Hi Gina. You can put as Commission and Service fees expenses
How can we shoot you messages/emails?
what if I'm doing uber eats on a bike? can you do a video for us please
Hello Mario Tech,
You can claim depreciation on bikes and any repair maintenance on bike expenses in your tax return against the income of uber eats.
@@chaitanyastaxadventures7772 If I buy an E bike, can I deduct all this money on my taxes?
@@marioporras223 curious about this too, just bought an ebike for $2300. It's not going to only be used for uber eats, but mostly. Did you figure it out?
@@chaitanyastaxadventures7772 please help us with this question
How come no insurance expense in your example?
Hi Todo. If Uber did not cover your Insurance for your ride at the time of your Uber trip , you can claim Insurance Expenses . Generally Uber cover Insurance during ride but I heard that they did not cover ride during idle time and from your place until you get passenger . In that case you can Proportionately claim Insurance expenses for the kilometers not covered by UBER.
What about insurance write off?
These expenses are also deductible.
Is this quite similar to ubereats?
Quite similar . Only difference is that ubereats is Courier service so there is Zero rated GST/HST so you do not need GST/HST for Ubereats and if you have GST number for that , You can claim GST refund for your GST on expenses (ITC ) .
What if you only make 5k? Is it the same?
You have to file taxes regardless of your income.
I do 500 $ work i need to fill tax
Yes. Any Income from Business . You need to report in your tax return
I think this needs some update, as for now, Uber tracks all mileage (including when you go and pick up customers), so that is reliable.
Watch this to calculate your 2023 Uber earnings (+tips) ruclips.net/video/MN8yvPqPWQQ/видео.html