Thank you for renting your car on the Hyrecar platform in 2016! We’ve received a few questions regarding Tax Form 1099-MISC. In order to provide more clarity, we’ve put together an example and compiled answers to a few commonly asked questions.
“Why is the 1099-MISC amount different from the amount shown on my HyreCar dashboard?”
A: The 1099-MISC amount is the total transaction value Drivers paid to rent your car (including hyrecar’s fee and insurance costs). The amount shown on your Hyrecar Dashboard is net of Hyrecar’s fee and driver insurance costs.
For example, if a driver rents your car for the offer price of $200 per week. The total cost to the driver is $290 ($70 for insurance and $50 HyreCar fee). Your 1099-MISC will show $290 and your dashboard will show $170. The difference between the total listed on your form 1099-Misc and your dashboard consists of fees and insurance which may be considered Operating Expenses and itemized on your 2016 Tax Return.*
“Why does my Hyrecar dashboard payment total differ from the amount I received in my bank account?”
A: Your dashboard is simply a list of your past rentals. It does not include ancillary payments (tickets, tolls, xs mileage, insurance claims, manual rental transactions, etc). These ancillary payments may be itemized as Operating Expenses on your 2016 Tax Return.*
* disclaimer: HyreCar does not provide tax filing advice, please consult with a tax professional for personalized filing and tax information.
Thanks again for renting your vehicle! Feel free to contact us with any further questions.