Drivers who works for companies such as Uber and Lyft are experiencing a positive outcome thanks to the new GOP tax bill.
Thanks to the bill, which was recently signed into law by Donald Trump, these drivers, along with freelancers and contractors, will now be able to deduct a total of 20% of their income from their taxable income prior to paying the new lower tax rates detailed in the bill. This will go into effect when 2018 income taxes are filed.
This change could essentially attract more individuals to take part in contract-type work; however, independent contractors won’t and currently do not have the same protections that actual employees have. These protections include workers’ compensation and health insurance.
Under the bill, individuals making below $157,500 and married couples who earn below $315,000 will be able to qualify for the 20% deduction.
Provisions, however, have been put into place that enable those who are above those income levels to benefit from what the bill offers, as those who currently have income that came from enterprises of a non-corporate nature will be able to deduct 20% of that actual income prior to actually filing any taxes on it.
In terms of Uber and Lyft, the popular Credit Karma service made the decision to partner with both companies last year to help drivers both prepare and file their taxes, all at no charge to them whatsoever.
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