Was wondering if we can tax deduct the 20% rover takes. After all if you make $1000/month Rover is getting $200/month. Not saying anything bad just wondering.
No, it isn't a tax deduction since you are not explicitly paying the amount. Your reported income is net of that amount. If you wanted to claim it, then you would have to gross-up your earnings and why would you want to do that as it doesn't match anything shown on Rover or Paypal?
Not a tax deduction as the Rover fees are taken before you get your net payout
When they get part of our fee, yes we are paying them that amount. We are providing labor. My labor costs 32 dollars a day and Rover is pocketing part of it. I'm still out the labor.
Rover should be clear to both parties what they are taking from the other party. I didn't know owners pay fees too. Owners thought I actually get the 32 a day I charge.
I just emailed my tax professional. I will post a reply when she responds.
You can find the gross and deductions on Rover that match the net amount on PayPal.
https://support.rover.com/hc/en-us/articles/203062540-How-do-taxes-work-#7 This article, which I am sure most have read, shows how to find your earning with the gross, fees, and net pay. I typed mine into a spreadsheet as I get paid. I am giving a copy to my tax professional to show my earnings.
I would ask a tax professional. I believe it is tax deductible. Because that is income coming out of YOUR pocket.
When I was an Uber/Lyft driver, I was able to right off their fees (they also took 15-20%). As we are independent contractors, the same principle would apply here.
I agree with this. Rover?
That is only because Uber sends 1099s that show the gross amount earned and its fees. If you want to deduct Rover's fees, then you have to report the gross amount earned with Rover, not the net. From a tax standpoint, it makes no sense to "gross up" income as that can negatively affect other areas.
Karen is correct.
Not unless you pay them the $200 back