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‘No Tax on Tips' Plan Excludes Uber, DoorDash Drivers

‘No Tax on Tips' Plan Excludes Uber, DoorDash Drivers

WASHINGTON—Uber and DoorDash are pressing Republican lawmakers to expand President Trump's no-tax-on-tips promise beyond employees to include independent contractors who drive ride-share vehicles and deliver food.
The leading tax-free tips proposal, from Sen. Ted Cruz (R., Texas) and Rep. Vern Buchanan (R., Fla.), would let many restaurant and casino workers claim the deduction. But Uber and other ride-share drivers are typically independent contractors, not employees, and they receive Form 1099, not Form W-2, to detail their income and then report that money—minus expenses—as business profits. They wouldn't be eligible under the bill.
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