2019 1099 Taxes

IRS Paying Closer Attention to Gig Economy Workers Than Ever

According to a number of recent studies, the gig economy has evolved in a wide variety of interesting ways over the last few years. This is including a few which likely could not have been predicted at the start. As of 2018 about 34% of gig economy participants in the United States were full time. A full 84% of them are doing so exclusively. That number equals about 47.8 million people in the United States alone.

This comes during a time when not only are corporations and Fortune 500 companies frequently outsourcing non-core tasks to gig economy workers. 47% of Millennials have embraced the freelancing culture. Experts predict that by as soon as 2020 about 50% of the United States workforce will be freelancers.

Taxes, the IRS and the Gig Economy

In a traditional employee and employer relationship, an employer will withhold taxes from every paycheck for their employees. They will also make contributions to Social Security as well. When someone participates in the gig economy, this doesn’t happen. The worker is responsible for all tax-related matters, including various self employment tax and withholding requirements.

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Recently, the Treasury Inspector General for Tax Administration issued a report about the importance of self employment taxes as outlined by the IRS. The IRS has an Automated Underreporter system, also known as the AUR, designed to help identify participants in the gig economy with discrepancies. It is designed to look at what they report on their income tax returns and what payments they actually received throughout the year on various 1099-K forms.

In an examination of the tax years 2012 through 2015, the report identified more than 264,000 different cases with potentially underreported payments. The data revealed that this was actually a problem that was getting worse over time. Underreporting increased a staggering 237% over the course of those four years.

While the program identified 264,000 discrepancies, nearly 59% were not moved through the system for further analysis. This was due to the sheer volume of potential issues that were being examined. The remaining 2,800 people who had potentially underreported their income for all four of those years. That total represents about $2.7 billion in underreported payments alone.


A large part of this has to do with how payments are handled in the gig economy. If a gig economy worker is paid via PayPal, they must receive over $20,000 in a single calendar year AND do so via 200 or more transactions. If they don’t meet or exceed both of those thresholds, PayPal doesn’t issue a 1099-K. This means that their income isn’t being reported to the IRS at all.

According to that TIGTA report, whenever income is not reported to the IRS, taxpayers are far more likely to be noncompliant. This is true both accidentally and intentionally. The first scenario could still land someone in hot water by way of late fees and other penalties. The second is actually criminalized and is punishable by up to five years in a federal penitentiary for prison and a fine of up to $250,000.

It’s true that the IRS has no intention of jailing over 40% of the United States workforce. But at the same time, they want their money.

The Treasury Inspector General made a series of recommendations to the IRS about how to best handle this issue moving forward. One of the biggest involved the development of a strategic plan to address tax administration for the gig economy. That plan should also create increased visibility into the collection and assessment of self employment tax as well. A soft notice program was also recommended, aimed at gig economy workers with repeated noncompliance issues.

TIGTA also recommended a significant expansion of the AUR program to account for a wider array of taxpayer situations. This was including those who have a long history of high-dollar discrepancies. The IRS disagreed with this recommendation. Officials said that their current system was fine and that adding more scenarios would ultimately add minimal value to what it was already doing.

11 recommendations were provided throughout the report and the IRS agreed with all but two of them. This was interpreted to mean that as an organization they are aware that this is an issue and they’re searching for opportunities to do something about it moving forward.

Best Practices for Gig Economy Workers

All of this means that the IRS is absolutely going to pay closer attention to gig economy workers over the next few years in particular. Most people operating under this system will have absolutely nothing to worry about, even if accidental discrepancies are identified. For the best results, gig economy workers need to:

  • Keep the most detailed records possible.
  • Keep all receipts for expenses.
  • Keep track of your mileage especially if you do work for a company like Lyft or Uber.
  • Don’t try to do your taxes on your own if you are not capable of doing them properly.
  • Stay on top of quarterly estimated tax payments to avoid getting hit with a large tax bill at the end of the year.
  • Don’t forget about the self employment tax, which is an additional 15.3% tax on top of the income taxes you already owe.

These best practices will help make sure that gig economy workers have nothing to worry about. This is true even in the event of an IRS audit. They’ll be less likely to make mistakes in the first place. They can also prove that any that did occur were unintentional.


Getaround Owner Tips

Tips for Renting Your Car Out on Getaround

Getaround is a peer-to-peer car rental service that rents out your vehicle to people who need a car rental in your area. According to Getaround, those who use the service can earn thousands of dollars per year by renting their vehicle when they aren’t using it. We’ve put together a quick list of tips to help you make the most of your experience renting your car on Getaround.

1. Optimize Your Getaround Profile

The more attractive your Getaround car profile is for potential renters, the more likely they will choose your car over the others that are available. Start by optimizing your car’s profile to capture the attention of renters. Think of your car’s description as a mini advertisement. You want to highlight what makes your car great, including the unique features it offers. If you have heated seats, a sunroof, a GPS system, or an upgraded sound system, mention features like this in the description.

Another way to optimize your profile is to ensure it’s accurate. Include detailed and comprehensive instructions for how renters can pick up and return your car. The easier it is for renters to access the car, the more likely they will be to rent it again. You should also make sure your availability is always accurate and up to date, as this prevents any scheduling issues and cancellation fees.

2. Screen Potential Renters Before You Accept Requests

If you want to make the most of your experience renting your car on Getaround, do some basic screening of potential renters before you accept their request. Getaround does a background check on renters to help ensure the safety of the hosts’ vehicles. However, the renter’s profile may provide some additional insight on how the renter will care for your car while it’s in their possession.

Before accepting a rental request, take a look at the renter’s profile. If they have rented many vehicles in the past and have received positive feedback from hosts, this is a good indication they will take good care of your car on their trip. If they are a new renter, take a look at their request and profile to get an idea of how they will be using the car. You can also reach out to them with more specific questions if you have them.

3. Optimize Your Rental Pricing

If you want to maximize your earnings on Getaround, take some time to adjust your rental prices for optimal revenue. Do some research on market pricing for similar rentals in your area on peer-to-peer rental services. This will give you an idea of the going rate for vehicles like yours.

Getaround predictive pricing


You should also adjust for peak rental times. There is typically less demand for weekday rentals, so lowering your rates can help you bring in more rental volume. Increasing your rates on weekends or during holidays can help you bring in more extra cash during peak volume. Offering discounts for longer rentals will encourage renters to choose your vehicle for longer periods of time, which helps you earn more by keeping your car on the road for longer.

Getaround also offers predictive pricing, which you can enroll in on the site. This feature will automatically set dynamic pricing for your vehicle that adjusts with renter demand. The goal of this option is to ensure your car is optimally priced at all times. If you do not have the time or resources to do rental research yourself, Getaround’s predictive pricing will help you stay on track.

With the tips above, you’ll be on your way to making more money on Getaround in no time. Remember, if you want renters to continue to rent your vehicles and rate you highly, you need to make sure you provide a quality experience every time.


4. Clean and Maintain Your Car Between Trips

Renters love a clean and well-maintained vehicle. It’s important you clean your car between rentals to ensure each renter has access to a clean and fresh smelling vehicle. Though renters are supposed to bring the car back in the condition they found it in, many may forget to remove trash or don’t have time to vacuum sand, dirt, or debris from the floors and seats.

Remove anything that’s been left behind, and wipe down high traffic areas like the dashboard and armrest to remove crumbs and smudges. Wipe down the windows with window cleaner, and vacuum the car as necessary. Use a fabric freshener like Febreze to eliminate smoke or food odors that may permeate the car.

In addition to keeping the car clean, make sure that other maintenance tasks are also taken care of. Stay on top of routine oil changes and inspections to ensure the car is in working order. Check on things like air filters and wiper blades on a regular basis to make sure these are in working condition for the next renter. Not only will this help you provide a good experience for renters, but it will help ensure your car runs smoothly.


Lyft Ipo Roadshow March

Uber Losses Narrow, Lyft Gets IPO Roadshow Ready, And Grab Takes Pets

This Week In The Gig Economy — Feb. 22, 2019

To make sure you’re up-to-date on the latest news, here’s what made headlines this week across the gig economy.

Uber Reports Fourth Quarter Losses, Files New York Lawsuit, and Expands Freight Team

Late last week, Uber released its 2018 fourth quarter financial report. The company announced an $865 million loss, which was significantly less than their actual $1.2 billion loss thanks to a federal tax benefit. In terms of pro forma, the amount translates to $768 million. While such a loss may sound concerning, it’s actually less than last year’s Q3 loss of $939 million. They also increased their gross bookings total by 11 percent.

Uber also filed a lawsuit against New York City. Back in August of last year, the city council enacted new restrictions designed to regulate the city’s ridesharing industry. One of the laws restricts the number of new drivers allowed on transportation sharing platforms, like Lyft and Uber. Uber is suing to reverse that particular regulation.

On another note, the rideshare company is looking to take Uber Freight global. After losing two of the program’s founders to Turvo earlier this month, the company has added two new team members to help expand its operations. Andrew Smith will step into the head of global sales role while Bar Ifrach is set to become the head of marketplace. Previously, Smith served as vice president of field and commercial sales at Box, and Ifrach was the director of data science at Airbnb.

3DEN Announces $2 Million Funding Round

Based out of New York, 3DEN hopes to bridge the gap between Airbnb and WeWork with short-term, on-demand urban space rentals. The startup has raised $2 million in its seed round to bring this concept to life. The funding round consisted of eight investors and was led by Graphene Ventures and b8ta.

Currently, the company is in the process of building its first location in New York City. While the development isn’t finished yet, the space includes meditation areas, private showers, communal sections, and sleeping pods. Upon completion, visitors can utilize the facilities for around $6 for every 30-minute session.

Lyft’s Throws Shade, Gets Ready For An IPO Roadshow, and Supports California EPA Lawsuit

While Uber’s loss report may unsteady their IPO standing, it didn’t prevent Lyft’s John Zimmer from throwing some shade. In an interview with CNN, the rideshare company’s co-founder claimed to be underwhelmed by Uber, even referring to the competitor as jerks.

“We’re in a time where it’s more interesting to hear about people that are maybe jerks, to say it mildly.”

While Zimmer may have no qualms speaking publicly about his dislike of the rival company, Uber’s not the only one that’s faced PR issues. Earlier this year, Lyft filed its own lawsuit against New York City to reverse a law requiring rideshare platforms to pay their drivers minimum wage. Regardless of their reasoning, their objection to increased wages caused some backlash both within and outside of the industry.

However, the company’s latest lawsuit news is having the opposite effect in many circles. Last Thursday, Lyft filed a federal appeals court brief supporting California’s lawsuit against the EPA. The federal agency decided last April to reverse previous fuel emission standards put in place for the auto industry. As of now, there isn’t a court date set for the proceedings.

While both Uber and Lyft are racing towards their IPO’s, Lyft seems to have the inside track. They’ve scheduled their IPO roadshow to begin the week of March 18, which means Lyft should be a public company by early April.

Thumbtack Announces Benefits Offering for Freelancers

A popular platform for on demand services, Thumbtack is breaking the gig economy mold by offering independent contractors benefits. The company is launching a pilot program with Alia that allows customers the option to pay money toward a contractor’s benefits, which includes life insurance, worker’s compensation coverage, and paid time off. Thumbtack will also add $25 to the fund for each individual that joins the program. However, only on-demand residential cleaners based in California and New York are currently invited.

The treatment of freelancers, especially in the on demand sectors, has been brought into question over the past year. From pay to operation costs, the gig economy’s fast rise has left little time for honest discussions and policy improvements pertaining to the welfare of contractors. Thumbtack’s move to offer a benefits program, even in a limited testing state, gives it a vast advantage over other companies in the industry.

StarOfService Reports Profits After Business Model Change

Serving essentially as Thumbtack’s European counterpart, StarOfService has announced it’s achieved a profitable January. The news comes after the on-demand company reorganized their business model. Instead of charging customers to list a job request, the cost is passed on the contractor once the client has reached out to them for service.

Even though the company reportedly processes over $70 million in transactions every month, it struggled to achieve profitable status in the past. Such a situation is common for startups, especially as they’re rapidly growing their services and expanding their market locations. Yet their ability to evolve into a profitable business this early on gives them a competitive edge in an incredibly fierce market.

Grab Goes Pet-Friendly

It’s official – the Singapore based rideshare and delivery services giant Grab was named one of the most innovative companies in the world. Grab was able to do so by broadening their horizons. Originally, the app offered delivery services, rideshare options, and travel booking options. Now, the company offers a variety of logistic services such as financial services, scooter rentals, and most recently – GrabPet.

This week Grab announced the newest pet-friendly transport service. While GrabPet is still in beta, this transportation option will solve the continued struggle of the urban pet parent, solidifying Grab as the ultimate user app in Singapore.

While Grab was beaten out by Chinese tech firm Meituan Dianping for the number one spot, Grab was ranked the second most innovative company. After expanding their services to better suit their users, Grab hit $1 billion dollars in revenue in 2018. Grab also managed to drive their chief competitor, Uber, out of the region in 2018.

As the company continues to expand its service lines and experiences, GrabPet only advances the companies position as the leading service option in Singapore.


Freelancer Working For Upwork

8 Things to Know About Using Upwork as a Freelancer

Whether you already do freelance work in some capacity or not, you probably know there are a number of tools available to connect freelancers with potential clients.

If you haven’t tapped into the platform Upwork, you might be missing out. Not only are there many jobs available, but working on Upwork also allows freelancers to offer a variety of services in the following categories:

  • Web, Mobile & Software Dev
  • IT & Networking
  • Data Science & Analytics
  • Engineering & Architecture
  • Design & Creative
  • Writing
  • Translation
  • Legal
  • Admin Support
  • Customer Service
  • Sales & Marketing
  • Accounting & Consulting

While the platform is fairly intuitive, there are a few things that are unique to Upwork as you set up a profile and begin applying for opportunities.

1. Membership Plans

There are two membership offerings on Upwork.

The Basic membership plan is free, includes 60 connects per month (see below for more about connects), provides hourly protection to ensure you’re paid for each hour worked, and secures fixed-price payments through milestones.

However, a Plus membership offers many perks, including:

  • 70 connects per month
  • Your profile will never switch to private based on inactivity
  • You can buy more connects for $1 per connect
  • Unused connects rollover (up to 140)
  • Setting to keep your earnings confidential
  • View competitor bids for any job

2. Completing Your Profile

As you set up your profile, include as much information about yourself as possible so potential clients have a clear understanding of your experience and skills.

Make sure you add a thorough overview with a summary of your experience. You can even add a video talking about your skills or showcasing your work.

Your profile will also list your hourly rate, total money earned, and number of jobs you’ve worked. Other pieces of information include location, languages, number of hours you’re available, work history, and feedback from clients.

You can also add a portfolio, skills, tests, certifications, employment history, and education.

3. Getting Paid on Upwork

Upwork is flexible in that it offers a number of ways to receive payments. Common ways include connecting to your bank account or directing to a local bank. You can also opt to use a third-party payment vendor such as PayPal or Payoneer.

Earnings become available on different schedules, depending on the type of payment. For hourly contracts on Upwork, each weekly billing cycle ends on Sunday and your earnings will be available 10 days later, the following Wednesday.

For fixed-price contracts, freelancers will be paid based on milestones. Once the client approves your milestone, funds will be available after a five-day security period has passed.

Another aspect of getting paid on Upwork is the fee taken out of your earnings. While fees can be a downside of this platform, the advantages of using a site like Upwork can sometimes outweigh the disadvantages. For the first $500 you bill to a client, Upwork will take 20%. Once you reach $500 to $10,000, Upwork will take a 10% fee.

Finally, once you exceed $10,000, the fee will go down to 5%.

4. Understanding Connects

Once you set up your account, you’ll see a number of connects listed on your account as you search for jobs. Basically, these are tokens you can use to submit proposals each month. When submitting a proposal, most jobs require two connects, but this may vary. If a client initiates contact with you first, you won’t use a connect.

5. Searching for Jobs

As you search for jobs on Upwork, there are a few things to keep in mind.

  • Search for jobs that focus on your area of expertise.
  • Look for clients who have a verified payment method – it’s nice to have that peace of mind.
  • Take a look at reviews for past jobs the client has hired for; this will give you a good idea of how they work with freelancers.
  • Filter jobs that are based in the U.S. or if you’d like to apply for international jobs, include those as well.
  • Take notice of information such as whether or not jobs are hourly, estimated time to complete, hours required, and the level at which the client is paying – Entry-Level, Intermediate, or Expert.
Upwork Freelance Tips


6. Be Realistic About Your Experience

While someone with several years of experience might not want to take a low-paying job, you should be open to taking a slightly lower paying project to start.

This could lead to more jobs with this client.

If you find you’re not being offered higher paying jobs and you feel your experience qualifies you, try to showcase your experience on your profile and when you submit a proposal.

7. Submitting a Proposal

Applying for jobs on Upwork is fairly easy, but there are a few things you should be aware of. For example, when you click “Submit a Proposal,” the top of the page will tell you how many connects are required to apply.

Next, you’ll enter an hourly rate or milestone amount for that job. This section will also clearly display how much the service fee will be and how much you’ll earn.

Finally, you’ll want to include a cover letter that details your experience and why you would be the best fit for the job.

Note that Upwork advises freelancers not to upload their resume as an attachment when submitting a proposal, but rather, include work samples or other documents.

8. Take Tests to Prove Your Expertise

Upwork provides freelancers the opportunity to prove their expertise and impress potential clients by taking free Upwork tests. You can choose tests based on category and choose the best fit from there.

If you’re a writer, there are currently 20 tests available to prove your English language ability under English Language that may prove helpful as you submit proposals.

Ready to chase after your side hustle on Upwork? Get started here.


Uber Lyft Driver Minneapolis Guide

Minneapolis Lyft And Uber Driving Guide

Minneapolis is the 16th largest metropolitan area in the United States. Consisting of some 3.6 million residents, the Twin Cities Metro is not only the economic hub of Minnesota but is one of the largest economic centers in the Midwest. Since the introduction of Uber and Lyft to the region in 2012, rideshare has been a mainstay of the Minneapolis scene.

However, with the average spent on Lyft and Uber in Minneapolis at $34 per month, compared to $56 in Atlanta and $84 in New York, it is important to know where and when to drive if you want to drive profitably. The difference in where and when you start driving can be the difference between a busy night and a low fares outing.


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Best Places To Drive Lyft & Uber In Minneapolis

Minneapolis has worked hard to be accommodating to Lyft and Uber. Per Minnesota Public Radio, in 2018 there were more than 5,000 Uber and Lyft drivers cleared to serve the Minneapolis-Saint Paul Airport, compared to just 600 taxis. This willingness to embrace ridesharing gives drivers advantages in pick-ups, particularly downtown.

On weekend nights, for example, 1st and Hennepin Avenues between 3rd and 6th Streets are closed to regular traffic. Rideshare drivers can enter the area at 6th and 1st and 6th and Hennepin. It is important that the vehicle is wearing its proper trade dress on both the front and back windshields.

During daylight hours, the best places to drive are downtown, Dinkytown, and Bloomington.

Downtown: The heart of the Minneapolis business scene, it goes without saying that transporting work commuters can be lucrative. Popular spots include Target Center, Hennepin Avenue, the Metro Transit stations, Nicollet Mall, the Hennepin County office complex.

Parking and traffic can be challenging, particularly during rush hour. When driving downtown during prime hours, it is important to set aside enough time to handle the traffic or to learn how to navigate alternative routes.

Dinkytown: Dinkytown is populated by University of Minnesota students and recent alumni. North of the University of Minnesota Twin Cities East Bank campus, Dinkytown is usually buzzing in the day with both students traveling to and from class and tourists.

Al’s Breakfast, arguably the smallest restaurant in the state, and the Loring Pasta Bar—which is in the building where Bob Dylan lived—are all in the neighborhood. During the University of Minnesota football season, weekend demand to and from Dinkytown is a must for rideshare drivers.

Bloomington: While technically not part of Minneapolis, the affluent suburb of Bloomington is home to the Best Buy, HealthPartners, Toro, and Ceridian corporate offices, the Mall of America, and the Minneapolis-Saint Paul Airport. As Bloomington is a large city in its own right—the fifth largest in the state—it is advisable to choose a spot, such as the airport, to work instead of roaming. The airport uses a “first-in, first-out” system, meaning that drivers need to enter a designated waiting area in the “FIFO zone” to receive priority queuing for airport passengers.

Bde Maka Ska: Formerly Lake Calhoun, Bde Maka Ska is the largest lake in Minneapolis. Surrounded by city parks and walking trails, the lake is a popular destination year-round.


At night, the best spots are:

Target Field, Target Center, Xcel Energy Center, and U.S. Bank Stadium: Minneapolis is a city for hardcore sports fans. Whether it’s the Vikings, the Timberwolves, the Twins, or the Lynx, Minneapolis has a professional team for everyone. It is important for rideshare drivers to know the game schedules for all four stadiums in order to maximize pickups.

Uptown: The hub of young professional and hipster life in the city, Uptown is the place to be for the 18- to 35-year-old demographic. Popular spots are Calhoun Square, Cowboy Slim’s, Stella’s Fish Café, Sushi Tango, the VFW Post, and the Green Mill.

Dinkytown: The college students will want to go out and party. Safe bets are the Varsity, Fraternity Row, and 14 Avenue SE.

Downtown/Hennepin Avenue: Home of the Saloon, the Orpheum theater, First Avenue, and the Butcher & the Boar, driving Hennepin at night can be challenging, but rewarding.

Warehouse District: The home of Target Field, the Warehouse District is full of coffeehouse, museums, restaurants, and boutiques. Popular spots are the Fulton Brewing Taproom, Gay 90’s, Cowboy Jack’s, the Pourhouse, and Bar La Grassa.

It should be noted that not every neighborhood/area will be busy all the time. Especially during the winter, a driver may find more fares in the residential neighborhoods than staking out the commercial ones. Good residential areas to try are Lyn-Lake, CARAG, and Northeast Minneapolis.

When to Drive

The best time to drive depends on the area:

Bloomington: 10 a.m. to 9 p.m. Monday to Friday and 9 a.m. to 9 p.m. weekends for the Minneapolis-Saint Paul Airport, and 11 a.m. to 10 p.m. every day for the Mall of America.

Downtown: 6 a.m. to 9 a.m. and midnight to 3 a.m. Monday through Friday, 9 p.m. to 3 a.m. Saturday and Sunday. Two hours before and after performances at the Orpheum and First Avenue, and two hours before and after events at Target Field, Target Center, and the Xcel Energy Center.

Warehouse District: 9 p.m. to 3 a.m. every day.

Dinkytown: 6 a.m. to 2 p.m. and 9 p.m. to 3 a.m. Monday through Saturday.

The Metro Transit Stations (Target field, MSP, Mall of America): 7 a.m. to 11 p.m. every day.

Uptown: 9 p.m. to 3 a.m. Monday through Saturday.

For a full-time driver, a good strategy is to start with the downtown commutes and work toward the airport.

The airport is busiest Tuesday through Thursday, with peak times at 7 a.m., 9 a.m., 1 p.m., 5 p.m., and 7 p.m.

It is typically better to drive rideshare on weekends than weekdays, but if a driver is willing to show some flexibility, it is possible to keep your queue full. It is important that, before you drive, you are familiar with the city and are comfortable navigating without a map.

Uber vs. Lyft In Minneapolis

Uber and Lyft both appeared in Minneapolis roughly at the same time. Both offer various bonuses and incentives for new and existing drivers. As a driver, you tend to wind up favoring one or the other. However, many Minneapolis drivers sign up for both Lyft and Uber and alternate sign-ins based on current rates.


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Uber vehicle requirements

Uber Car Requirements—Does Your Vehicle Meet the Requirements?

Uber Car Requirements 2019 – Does Your Vehicle Meet the Requirements?

Whether you want to work full- or part-time, becoming a rideshare driver offers plenty of opportunities to boost your income. Uber is the most popular choice for those entering the rideshare industry for the first time, but the company does have a variety of criteria that must be met. While your initial focus may be on qualifying as a driver, you’ll also need to utilize a vehicle that meets Uber’s car requirements. Below is everything you need to know about passing the rideshare company’s vehicle inspection process.

Uber Car Requirements: The Basics

The two most important focuses of the driver application process are Uber driver requirements and vehicle requirements. To drive for the rideshare company, you need to meet the criteria of both aspects. Here’s a closer look at each:

Basic Uber Driver Requirements

Before you can join the Uber fleet, you need to ensure that you qualify as a driver. The rideshare company has a few basic requirements that all applicants must meet:

  • Age: Must be at least 21
  • Experience: One year of driving experience for individuals over 23 or three years for anyone under 23
  • License: Must have a valid, up-to-date driver’s license
  • Background: No violent crime convictions

Uber completes a thorough background check to review each applicant’s criminal and driving history. Any more than three tickets within the last three years will cause the system to reject your application. Drivers must also be present on the vehicle’s insurance policy.

Basic Uber Vehicle Requirements

Once you’re sure you meet the basic driver criteria, you can turn your attention to Uber’s vehicle requirements. You’ll need to provide proof of registration, but you don’t have to be the owner of the car to drive it. Here are the basic checkpoints:

  • Age: Can’t be older than 15 years
  • Doors: Must have four doors
  • Seats: Fits at least four passengers with seatbelts
  • Insurance: Must meet the state’s liability insurance coverage requirement
  • Inspection: Must pass the company’s inspection checklist

The rideshare company doesn’t accept rebuilt vehicles or those with salvage titles. The car, SUV, or minivan must also be in excellent condition and free of any major cosmetic damage.

State & City Uber Requirements

Uber’s company-wide requirements aren’t the only criteria—you also need to meet the driver and vehicle requirements of local and state governments. Many municipalities have put their own laws in place that govern who can and can’t legally provide rideshare services in the area. For instance, a vehicle age restriction of 10 years is common in many cities, which is five years less than the company’s rule. As a result, it’s important that you verify your location’s unique requirements before applying to become an Uber driver.

A Breakdown of Uber Vehicle Requirements

There are a few different ride styles available with Uber. Each level is associated with stricter requirements as well as higher fare. If you qualify for one of the more luxury-focused categories, you can end up earning a substantial amount more per ride than the basic options. Here’s a closer look at each level and the associated requirements:


The most basic ride style is UberX, which offers a no-frills, comfortable, and safe journey. You’ll need to meet all the basic Uber car requirements listed above. If you qualify for UberX, you can also drive for UberPOOL. Some of the most common car examples include the Ford Focus, Honda Civic, and Toyota Camry.

Uber Car Requirements - UberX

Uber Comfort

Uber Comfort offers a newer mid-size vehicle with guaranteed legroom. You’ll need a car less than five years old, in good condition, with extra legroom. Check out our Uber Comfort guide for a list of vehicles that qualify.


UberXL is a larger version of the UberX with a focus on affordability and convenience. To qualify for UberXL rides, your vehicle needs to accommodate the needs of at least six passengers (seven seats total). The higher occupancy level of UberXL means drivers make more per trip. The Ford Explorer and Dodge Caravan are two of the most popular vehicles in this category.


UberSELECT is a step up in luxury from UberX. To meet the Uber car requirements for this option, the vehicle needs to fit four passengers, offer four-doors, and have a leather interior. It must also be under 10 years old. Lexus LX and Cadillac CTS are two common examples of UberSELECT vehicles. Check out our Uber Select driver guide for more information on Uber Select vehicles.

Uber Vehicle Requirements - Uber Select


UberSUVs offer the size capabilities of UberXL but with the luxury of a high-end appearance. While there are location variables, typically UberSUVs need to be five years old or newer, offer a black interior and exterior, and have a capacity for six riders. For this category, you’ll see quite a few luxury SUVs, like the Lincoln Navigator and Cadillac Escalade. There are also higher driver restrictions, which usually require commercial driver registration and experience.


UberBLACK is the rideshare version of a traditional black car service. This category features only high-end vehicles in excellent condition to create the luxurious atmosphere riders desire. While this ride option typically utilizes sedans of high-end brands, like Mercedes, SUVs also qualify. However, all vehicles must be newer than five years and offer black-on-black attributes (black interior and exterior). As with UberSUV, drivers must be registered for commercial driving services.

Uber Vehicle Requirements - Uber Black


UberLUX is the epitome of class and luxury, and it also pays the highest fares. The Uber vehicle requirements are incredibly strict for this style of ride, so it’s much harder to qualify. As with UberBLACK and UberSUV, all UberLUX vehicles must offer a black-on-black finish along with an excellent interior and exterior condition. Top-quality Audis, Porsches, and BMWs are common, but they must be under five years of age.

Uber Car Requirements - Uber Lux


Don’t Meet Uber’s Car Requirements? Here Are Your Options

If you don’t meet the minimum vehicle requirements, don’t give up your dream of driving just yet. There are two alternative options available: rent an Uber vehicle or opt for a delivery service.

Rent an Uber Vehicle

To accommodate the needs of more individuals, Uber has partnered with three companies to allow drivers to rent a vehicle for the purpose of rideshare. It’s a fairly new program, but it’s an excellent move because it opens up the market to more contractors. The three Uber car rental options available include:

  • Getaround: Designed for short-term rentals
  • Hertz: Offering weekly rentals
  • Fair: Affordable and flexible leases for Uber, and other rideshare and delivery services.

These partnerships make it easier for drivers to start making money, even if their current vehicle doesn’t meet the minimum Uber car requirements. Unfortunately, the services are only currently available in certain markets. If you live in a major metropolitan area, then it’s likely a solid choice. However, drivers in smaller cities or rural locations will have to wait until the service expands because Uber only accepts drivers with rentals from approved companies.

Delivery Driver Services

If you don’t want to rent a vehicle, you also have other on-the-road options outside of rideshare. UberEats is the company’s food delivery service, which has fewer restrictions on vehicles. For car delivery, they accept vehicles made after 1998, and it only has to have two doors. You can also make Uber deliveries with scooters and bikes.

There are also a plethora of other delivery options. Caviar and Doordash are top recommendations because of their popularity and wide customer base. Instacart is another up-and-coming service, but instead of restaurants, it focuses on grocery shopping and delivery. Each of these options is accompanied by their own requirements, but since passengers aren’t involved, most of the companies are more lenient on vehicle condition and age.

What to Expect at the Uber Vehicle Inspection

All Uber vehicles have to undergo a 19-point inspection before they’re given the all-clear. Once your application is approved, Uber will send you information outlining partnering auto shops in your area where you can schedule the service for free. Here’s what the technician looks for during the inspection:

  • Exterior lights – headlights, tail lights, brake lights
  • Brake pads and shoes
  • Windshield – general condition and wiper functionality
  • Functioning seatbelts
  • Doors – working condition and locks
  • Horn
  • Bumpers – presence and condition
  • Exhaust system
  • Tires – tread and signs of damage

Each inspection is only good for 12 months, so you’ll need to complete the task again in one year. If there aren’t any partnering auto shops in the area, you can choose any shop that’s approved to provide state vehicle inspections. In such a situation, you will have to pay out-of-pocket for the service. You’ll also need to provide the technician with the correct paperwork and have them submit it to the company.

Meeting Uber’s Vehicle Requirements: Time to Hit the Road

Now that you know Uber’s car requirements, you’re one step closer to hitting the road and making money. If you’re ready to apply, utilize our Uber driver promo code – i9tz1 –  to ensure you reach your full earning potential. Simply click the button below to start your Uber application, and receive a sign up bonus earnings guarantee of up to $2000.


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Become A Tasker On Taskrabbit

Is Taskrabbit Right For You? Tasker Sign Up Guide

Will someone really pay you to stand in line? Or to bring donuts to an office meeting? Or even hang out at a party? The answer is yes.

What Is TaskRabbit?

Simple jobs like those listed above, and many other time-saving or logistical-minded errands, are among the simple tasks you can earn money by doing with TaskRabbit.

The TaskRabbit app is based on the idea that many of the everyday tasks that we take for granted can be very burdensome for people who are either too busy or otherwise limited from doing it themselves.

Demand from TaskRabbit customers includes typical daily chores like delivery services, handyman skills, personal assistance, and pet sitting. But more unique gigs like light accounting, organizational services, event planning, and computer help are also on the menu.

There are dozens of categories for which Taskers can register. What’s more, furniture giant IKEA recently acquired the company and is using the platform to connect consumers with Taskers who can help build purchased furniture. The stream of potential work is only growing, and it’s time to take advantage of it!

What It Takes to Be a Tasker

TaskRabbit has a simple registration process that can be completed using their app on your device of choice. First things first, review all of the job categories available and be sure you’re experienced in at least one of the skills. Afterward, select as many of them as possible:

  • Carpentry & Construction
  • Cleaning
  • Decoration
  • Deep Clean
  • Delivery
  • Electrician
  • Errands
  • Event Staffing
  • Executive Assistant
  • Furniture Assembly
  • IKEA Assembly
  • Laundry and Ironing
  • Lift & Shift Furniture
  • Minor Home Repairs
  • Mounting
  • Moving Help
  • Office Administration
  • Organization
  • Packing & Shipping
  • Painting
  • Pet Sitting
  • Plumbing
  • Sewing
  • Shopping
  • Waiting in Line
  • Window Cleaning
  • Yard Work & Removal
Taskrabbit tasker hanging a mirror.


Once you’re certain that you’re a good fit for one or more of the opportunities offered, make sure you also fulfill the following requirements:

  • Be at least 21 years old
  • Provide a government-issued photo ID and your social security number
  • Submit to a background check
  • Upload a picture of yourself to the app
  • Own a smartphone (iOS or Android)
  • Hold a checking account for direct deposit payments
  • Pay a non-refundable $20 processing fee for applications
  • Can be available to work in an area that TaskRabbit serves

On that last requirement, TaskRabbit isn’t currently available everywhere in the country (but they’re working on it), so double check if you’re within commuting reach of the following cities:

  • Atlanta, GA
  • Ann Arbor, MI
  • Austin, TX
  • Baltimore, MD
  • Birmingham, UK
  • Boston, MA
  • Bristol, UK
  • Charlotte, NC
  • Chicago, IL
  • Cincinnati, OH
  • Cleveland, OH
  • Columbus, OH
  • Dallas, TX
  • Denver, CO
  • Detroit, MI
  • Durham, NC
  • Fort Worth, TX
  • Greater London, UK
  • Houston, TX
  • Indianapolis, IN
  • Jacksonville, FL
  • Kansas City, MO
  • Las Vegas, NV
  • Los Angeles, CA
  • Louisville, KY
  • Manchester, UK
  • Memphis, TN
  • Miami, FL
  • Milwaukee, WI
  • Minneapolis, MN
  • Nashville, TN
  • New Haven, CT
  • New York, NY
  • Oklahoma City, OK
  • Orange County, CA
  • Orlando, FL
  • Philadelphia, PA
  • Pittsburgh, PA
  • Phoenix, AZ
  • Portland, OR
  • Raleigh, NC
  • Sacramento, CA
  • Salt Lake City, UT
  • San Antonio, TX
  • San Diego, CA
  • Seattle, WA
  • San Francisco Bay Area, CA
  • St. Louis, MO
  • St. Paul, MN
  • St. Petersburg, FL
  • Tampa, FL
  • Washington, DC

TaskRabbit is always trying to expand to more areas, so keep checking back, or sign up here to be notified when your metro area is added to the regions they cover. While you don’t need a car to be a tasker, it’s up to you to get yourself to and from your jobs. If you have more detailed questions about the preliminary requirements, TaskRabbit provides an excellent resource page to address those concerns. For example, maybe you’re concerned about the background checks and processing fees. A thorough explanation can be found at the Trust & Safety page.

Becoming a Tasker

Got all those resources and information described above? Passed your background check? Great! Now you can now register to be a Tasker! Now it’s time to sign up for the gigs that fit your skill set. TaskRabbit will even give you access to an Info Session to prepare you for next steps.

1. Create Your Profile

For each of the services you can provide, you will need to create a profile. This will include a picture of yourself and a “quick pitch” where you talk yourself up. Make that picture count! Everything from lighting to setting can help sell you. TaskRabbit has a guide to composing a great profile pic. The pitch is your opportunity to convey what service you perform, why you’re good at your task, what experience you’ve had in performing it, and what makes you a better pick than the other Taskers. Each category will require a separate personal pitch and is limited to 250 words. Look around the app at other successful Taskers’ pitches for an idea of how to compose your own pitch.

Remember: You’ll be competing against other Taskers, so make sure to have unique, strong pitches that show your personality while also clearly articulating your abilities.

2. Set Your Rate

Next, set your rates. The suggested rates may seem low at first, but they will increase and can be changed as you accept more tasks and successfully complete them. Go with what TaskRabbit requires to approve your application and get you started. As your profile becomes more active, your rates can go up to $20-30/hour or more. Keep in mind that TaskRabbit will take 30% of your earnings as commission.

You’ll also need to provide your own supplies, tools, and transportation (there’s no compensation for gas). Of course, customers are free to tip, and that money is 100% yours. You’ll also have to set up your own map of what areas you can serve. This will define where you are available to complete certain jobs. TaskRabbit has a nice guide for creating your personalized map to help get you started.

3. Get Started

Once you are fully on board, get ready. Setting your app to “available” means you will have 30 minutes to respond to any incoming work request.

Failing to respond will harm your rating. As you continue, there are many different ways to improve your rating and become more efficient using the app, helping you earn as much money as possible.

That’s basically it. If you’re interested, click the button below to become a tasker.

Join TaskRabbit