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How Are You Tracking Miles for Taxes??

Discussion in 'Taxes' started by skytessa, Dec 12, 2016.

  1. Mears Troll Number 4

    Mears Troll Number 4 Well-Known Member

    Location:
    Orlando
    Driving:
    Taxi
    Your not supposed to deduct miles from your home to the first task or from your last task home,
    However everything on and BETWEEN trips is deductible.

    But if it's on your log you have the documentation needed.
     
  2. UberTaxPro

    UberTaxPro Well-Known Member

    Location:
    CT
    Driving:
    UberX
    All business miles are deductible. There is nothing in the IRC that states "you're not supposed to deduct miles from your home to the first task or your last task home". Where do you get this from? Don't confuse this with commuter issues. I've heard it before on here from other people but there is nothing I can find to support that position. If you're sitting on your couch at home and get a ping I would argue that the miles heading to the first pickup are business miles. Also, not everything between trips is deductible. If you run personal errands between trips that are not business related they're not deductible miles.
     
    Danny3xd likes this.
  3. UberTaxPro

    UberTaxPro Well-Known Member

    Location:
    CT
    Driving:
    UberX
    Having a home office that you take a deduction for on your tax return can help in justifying that miles to and from your home (office) are business miles.
     
  4. Mears Troll Number 4

    Mears Troll Number 4 Well-Known Member

    Location:
    Orlando
    Driving:
    Taxi
    I thought that it was the (you can't deduct commuting) rule.

    I've always just written it all off anyway thou LOL...


    And about running personal errands between trips...

    why not write it off anyway?
     
  5. UberTaxPro

    UberTaxPro Well-Known Member

    Location:
    CT
    Driving:
    UberX
    I'm sure you're not the only one that does that! LOL It's a free country and a volunteer tax system so it's always gonna happen but it's still against the law.
    For Uber drivers there is plenty of opportunity to legally reduce their Uber income to 0 or even lower so why would one want to risk potential large penalties or worse when the same results can be obtained within the law? I know you talked about a fairly easy time with an IRS auditor once but there is definitely no guarantee that anyone else reading this would get the same treatment as you did. Also, you were audited with a taxi job not with Uber. Uber provides many records that an IRS auditor could subpoena when examining a mileage log that are not available or would be difficult to get from most taxi companies.
     
    Danny3xd likes this.

  6. Mears Troll Number 4

    Mears Troll Number 4 Well-Known Member

    Location:
    Orlando
    Driving:
    Taxi
    It was not a taxi job, it was when i was driving a taxi *completely* independently, all my logs were hand written logs or based on hand written logs. And my paid mileage ratio was about 30%. with 69% re positioning somewhere else i could actually find a fare and 1% pure BULL.

    I know it's confusing but.... i used to be 100% independent in an independently owned car, now i'm an IC in a leased Taxi...

    But it;s the same concept, a hand written mileage log with a trip log, and they don't exactly line up, at all..



    The difference was i actually did pay taxes. With over $70,000 coming in every year it's hard not to. Overall i was writing off 25,000/70,000 give or take.

    My numbers lined up because they were for the most part based in truth, and i was still paying taxes. To be honest the mere fact that I was doing it properly probobly did a lot to keep me out of trouble.

    Now i'm writing off about 20,000/50,000 of my revenue as expenses and working 3-4 12s a week instead of 8-12 hours 7 days a week.
     
    LAuberX likes this.
  7. UberTaxPro

    UberTaxPro Well-Known Member

    Location:
    CT
    Driving:
    UberX
    "To be honest the mere fact that I was doing it properly probably did a lot to keep me out of trouble." YES, I agree 100%. That's what everybody on here needs to know! :)
     
    Danny3xd and LAuberX like this.
  8. So let say you work for Uber 6 months and you make less than $10k, and the other 6 months you don't do anything. Do you still have to Pay Taxes and File for Taxes for that year?
     
  9. Older Chauffeur

    Older Chauffeur Well-Known Member

    Location:
    Simi Valley Ca
    If you make $400 or more you will have to file in order to pay self employment taxes, even if you don't owe income taxes.
     
    UberTaxPro likes this.
  10. Then why did ppl on here told me as long as I make less than $10k, I don't have to pay taxes?
     
  11. UberTaxPro

    UberTaxPro Well-Known Member

    Location:
    CT
    Driving:
    UberX
    Generally, you don't have to file a tax return if you make less than $10,000 working for someone else. The rules are different for self employed. You have to file to pay social security and medicare (self employment taxes) if your net self employment income is over $400.
     
    Older Chauffeur likes this.
  12. Older Chauffeur

    Older Chauffeur Well-Known Member

    Location:
    Simi Valley Ca
    Look back at the context of your original question and the answers. You presented a scenario in which you only worked the last two weeks of the year and were told you would not hit the minimum income threshold of $10k. (It's actually slightly over that, $10,300+). I didn't want to complicate things for you by bringing up self employment taxes because it's highly unlikely that you would net $400 after expenses in that short time, and you clearly have no idea how the tax system works.
    You're trying to get simple answers to your questions without taking into account all the variables involved.
    Now you pose the question with a different idea in mind, in which you apparently make under $10k in six months. (You don't say how much under.) It doesn't matter to the IRS how long you work, only how much you make.
    I can tell that if you were to be audited and told the IRS agent that you got your tax advice here, that excuse wouldn't be accepted, and you would lose. "Ignorance of the law is no excuse."
     
  13. I know I dont know much about taxes and how it works.
    that's why I want to know if I make less than $10k / year, do I still have to file for Selp employment taxes (like driving for Uber) and pay the taxes?

    It's a simple question, you're trying to giving me with lots of information which I'm still confused.
    I just want to know that if I make less than $10k / year, do I have to file for Self Employment TAxes and Pay the Taxes?
     
  14. Mears Troll Number 4

    Mears Troll Number 4 Well-Known Member

    Location:
    Orlando
    Driving:
    Taxi
    If you get a 1099 you have to file taxes..

    If you drove more than 18518 miles you won't owe anything if you made 10,000 or less in "earnings"
     
  15. Older Chauffeur

    Older Chauffeur Well-Known Member

    Location:
    Simi Valley Ca
    We have answered your question, but you seem unwilling to accept the answer. In your own thread about taxes you indicated that you have income, but not from working. That income may be taxable. We told you the self employment threshold is $400 net, not $10,000.
    Perhaps, as I suggested earlier to you, the best thing would be to go meet with a tax professional, or call the IRS, explain your situation and let them answer your questions.
     
    thepanttherlady likes this.
  16. Older Chauffeur

    Older Chauffeur Well-Known Member

    Location:
    Simi Valley Ca
    A 1099 gives the IRS a reason to look for a matching return, but even if you don't receive one, you still have to file if your net self employment is $400 or more.
     
  17. So basically Uber will automatically send you a 1099 when it's the time right?
     
  18. Older Chauffeur

    Older Chauffeur Well-Known Member

    Location:
    Simi Valley Ca
    These quotes are from your original thread, jincuteguy. This is what I mean about the information you are providing and the questions you are asking.
     
  19. Older Chauffeur

    Older Chauffeur Well-Known Member

    Location:
    Simi Valley Ca
    They will send it to you if they pay you at least $600 over the course of the tax year. This should not be a matter of concern for you at this point, based on what you have told us.
     
  20. Yes that is correct. I didn't have any income for the past 11 months. Is that a bad thing or something?
     

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