I am curious how I would go about contesting how I was compensated as an independent contractor to the IRS for tax purposes. Is there an official channel for this or do I have to go some sort of court, small claims court.
This question is specific to CA, USA.
Long story short, I am doing my taxes for lyft and how the payments work as I understand it is: Either the rider pays me 'the driver or independent contractor' the ride total and I pay lyft their 25% the for using their services OR the rider pays lyft and they pay me AFTER they have taken out the fee/expense per ride.
Now, I am curious because they list my AGI (adjusted gross income) as 25% more. As in I am payed by the rider and give them their cut, yet the amount I am payed does not include that when I am payed at the end of the week. So it seems they take the money from the passenger, deduct their cut and pay me.
So why am I paying income tax on money I didn't receive?