As the dynamics of earning through GetAround evolves, it impacts how individuals handle taxes. Staying updated with the latest IRS updates can help you navigate the tax season effectively.

Recent IRS update: 1099 reporting guidelines

Despite ongoing discussions about potential changes to 1099-K reporting, the IRS has maintained the reporting threshold at $20,000 for 2023 tax filing. Any proposed reduction to $600 has been deferred until the 2024 tax year to avoid further confusion this tax year.

Understanding GetAround taxes

Before delving into specifics, it's essential to understand the concept of GetAround taxes. As an individual earning income through GetAround, you bear the tax responsibilities related to the income you generate.

Who needs to pay GetAround taxes?

Individuals earning income through GetAround are responsible for paying GetAround taxes. Since you’ll need to report income earned through GetAround to the IRS, it’s best to keep accurate records.

How will GetAround deliver your 1099s?

Typically, GetAround forms are sent electronically through your GetAround account. Having your contact and tax information up-to-date can help you get a prompt receipt.

Which tax forms are necessary?

• 1099-K: Outlines your gross revenue from GetAround transactions.
• 1099-MISC: Additional income, such as bonuses, may be reported on this form.
• Schedule C: If you operate as an independent contractor, filing Schedule C is essential for reporting self-employment income and deductions.

How can you minimize GetAround taxes?

• Deductions: Identify eligible business expenses related to your GetAround activities, such as vehicle maintenance and fuel costs. This helps reduce your taxable income.
• Quarterly payments: For substantial GetAround revenue, consider making estimated tax payments quarterly to avoid penalties at year-end.
• Vehicle-related expenses: Deduct expenses associated with the use of your vehicle for GetAround-related activities, including gas, maintenance and insurance.
• Tax credits: Explore potential credits to minimize your overall tax obligation.

What write-offs can you claim for GetAround?

• Vehicle maintenance: Deduct costs associated with maintaining your vehicle for GetAround activities, such as oil changes and repairs.
• Insurance premiums: If you use your vehicle for GetAround, you may be able to deduct a portion of your insurance premiums.
• Business mileage: Track and deduct the business-related mileage of your vehicle for GetAround activities.

When do you file your GetAround 1099 taxes?

• January 31: GetAround typically sends 1099-K forms by this date. Make sure your contact information on your GetAround account is accurate.
• April 15: File all necessary tax forms by this date to meet IRS deadlines. Consider seeking professional assistance for accurate filing.
• Estimated quarterly taxes: These are due every quarter and paying by the deadline helps avoid IRS penalties.

How can FlyFin support your GetAround taxes?

• Expert guidance: Rely on our tax professionals for expert advice tailored to your GetAround-related income and deductions.
• Tax planning: Strategize for the future with personalized tax planning to optimize your financial well-being.
• Deduction assistance: Maximize your deductions with FlyFin's support in identifying eligible business expenses and write-offs.

What’s FlyFin?

FlyFin caters to the tax needs of freelancers, gig workers, independent contractors and sole proprietors. But anyone can file taxes through FlyFin! FlyFin tracks all your business expenses automatically using A.I. technology. Then, our CPA team files a guaranteed 100% accurate tax return for you – to save you a couple thousand dollars and a ton of time on your taxes. In addition, you can download the FlyFin app and have your taxes filed in less than fifteen minutes, saving time and money.