As the dynamics of earning through Turo is continually evolving, it impacts how individuals handle taxes. Staying informed with the latest IRS updates can help you to 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 Turo taxes

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

Who needs to pay Turo taxes?

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

How will Turo deliver your 1099s?

Typically, Turo forms are sent electronically through your Turo 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 Turo 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 Turo taxes?

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

What write-offs can you claim for Turo?

• Vehicle expenses: Deduct the cost of fuel, insurance, maintenance and other vehicle-related expenses.
• Cleaning and maintenance: Expenses related to keeping your vehicle in top condition for Turo rentals may be deductible.
• Insurance premiums: Deduct the cost of insurance premiums for your Turo vehicle.

When do you file your Turo 1099 taxes?

• January 31: Turo typically sends 1099-K forms by this date. Make sure your contact information on your Turo 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 set IRS deadline helps avoid penalties.

How can FlyFin support your Turo taxes?

• 1099 tax support: Ensure accurate filing with FlyFin's expert guidance on 1099 tax requirements for Turo earners.
• 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.