1. UberPeople.NET - Independent community of rideshare drivers. It's FREE to be a person and enjoy all the benefits of membership. Sign-up HERE!

Taxes- What % of earnings do you save?

Discussion in 'Boston' started by Daniel Shore, Jan 11, 2017.

  1. Daniel Shore

    Daniel Shore New Member

    Location:
    Boston
    So I'm just getting started at this, doing it on a very limited basis (10 hrs/week). I know as a contractor, you are required to file a 1099 and pay back taxes at year end. What percentage of your weekly earnings are you saving so you're not screwed at the end of the year? Thanks.
     
  2. MaineMasai

    MaineMasai Member

    Location:
    Boston
  3. UStaxman

    UStaxman Member

    Location:
    Maine
    Driving:
    UberX
    0%---- Most lose money (on paper) or break even if lucky
    On average we drive 1 dead mile (empty) traveling to and back from a fare for each paid mile.
    We earn on average $1.00 mile (net). Mileage deduction= $1.12 for every dollar earned (.56/ mile x 2). Cash flow profit is on average .40 cents on each dollar earned (factored using a $13K used midsize sedan). Most part time drivers last less than 6 months so I wouldn't worry about setting aside for taxes as much as I would worry about setting aside $$ for car repairs.
     
    ReydiNapoli, driver5494 and kfeels like this.
  4. Golfermack

    Golfermack Well-Known Member

    Location:
    Boston, MA & Ft. Lauderdale, FL
    Driving:
    UberX
    How can you afford to save anything? Can you pay your bills working 10 hours/week for Uber?
     
  5. jjbos

    jjbos Member

    Location:
    boston
    What is savings?
     
    Dannyboss likes this.

  6. Beur

    Beur Well-Known Member

    Location:
    The Sandbox
    0% my expenses are always hire than my earnings.
     
  7. driver5494

    driver5494 Well-Known Member

    Location:
    southshore
    what are earnings?
     
  8. LAuberX

    LAuberX Moderator Moderator

    Location:
    Los Angeles
    Driving:
    UberX
    I save nothing for taxes.

    Log your miles. write down your odometer reading at the start and end of every Uber shift.

    dead miles and miles with a paying passenger are all business miles on your tax return, use the IRS "standard" deduction.

    No taxes will be owed if you are like most UberX drivers making less than $1.00 per mile driving 2 miles for every paid mile.

    keep the logbook 7 years.
     
    Peter Margios and bostonwolf like this.
  9. Gung-Ho

    Gung-Ho Well-Known Member

    Location:
    East of Omaha
    Driving:
    UberX
    I love these basic tax calculations based on base uber rates. Sure if every ride you give is at base rate i.e. No Boost No Surge then it can zero out your income for taxes. But will someone please explain how you write off incentive money paid or guarantees for so many rides get paid extra $$$.

    Conveniently all the drivers who claim to not make a profit seem to overlook that extra income they make per trip which can't be written off with the standard mile deduction.

    Look at any earnings statement posted here and there are thousands. Whenever avdriver has a good day it's not uncommon for more than have the money they earn come from surge, boost, or incentives.

    Don't believe the myth. You will owe taxes unless you inflate your mileage deduction to a crimminally fraudulent level.

    * This is a public service message*

    P.S. Let's not confuse the tax owed question with the actual expense to run your vehicle versus the standard mile deduction to prove profitability.It often gets confused as the same thing.

    Pay your tax!
     
  10. bostonwolf

    bostonwolf Active Member

    Location:
    Boston, MA
    Driving:
    UberX
    OR get Quicken Self Employed which will autolog your miles. Best 10 bucks a month I spend
     
  11. Shrimpy

    Shrimpy New Member

    Location:
    Quincy Ma.
    Tax should be in the 10% and lower for pt drivers . Ex. I made approx 2600 $ in six mos. Multiply this times .5 = 1300 for miles driven when fishing for pax or returning from dead end trip . At .54 / mile deduction 3900 total miles = $2106 deduct for miles alone . You can use earnings as mileage data . In my example 2600$ = about 2600 mi. driven with pax in car . I estimate I spent half that fishing for pax /thus the 1300 miles added. I have been audited in the past for a similar contract / driver job. IRS is not a nitpicker . If they audit you pay up and go on your way . Last I read IRS kicks out 1 in 100 tax returns for routine audit , their goal with increased computer power is said to be 1 in 10 . Conclusion : I will not have to pay tax for last year . All of my records are on my smartphone . I use Rockland Trust for my business bank and all records are kept by them and available to me on my phone .
     
    Sumkuker likes this.
  12. lyftuberandhopefullyjuno

    lyftuberandhopefullyjuno Active Member

    Location:
    home
    i use stride drive, to track all app on miles and expenses.

    I'm hoping for a loss on paper but i have 15% saved from a full time year. as a rule i put at least 25% of my weekly away , sometimes more,for a new car fund and taxes.
     
  13. LAuberX

    LAuberX Moderator Moderator

    Location:
    Los Angeles
    Driving:
    UberX

    Gung-HoGung-Ho How much did Uber driving cost you in taxes exactly?
     
    Last edited: Jan 17, 2017 at 8:25 AM
  14. lyftuberandhopefullyjuno

    lyftuberandhopefullyjuno Active Member

    Location:
    home
    last year taxes = 0

    full time driver

    i had a loss of $800 so paid nothing, perfect!!!

    Do it yourself, turbo tax or quick books
     
    Last edited: Jan 17, 2017 at 6:30 PM
    alexfuber likes this.
  15. alexfuber

    alexfuber Member

    Location:
    west bridgewater
    can you point me to the person that did your taxes ? I'm going to do the same and this is my first year on taxes . thanks
     
  16. Gung-Ho

    Gung-Ho Well-Known Member

    Location:
    East of Omaha
    Driving:
    UberX
    Well. My gross fares = $790.08. That includes surge rate rides. Added to that is $102.35 total incentives earned. Yearly earnings = $892.43

    Total "on trip" mileage according to Uber year end statement. 200.97 miles. If I double the miles for deductions to 402 miles mutliplied by $.54 standard mileage rate total deduction for tax purposes $217.08



    Earnings $ 892.43
    Deductions - $ 217.08
    ----------
    Taxable income $ 675.35

    S. E. Tax $ 95.00
    Income Tax Est. 25% tax rate $168.84
    -----------
    Total Tax $ 263.84

    In my area the rates were $1.90 per mile + .24 per minute. Even if I triple my mileage deduction miles my tax burden would be about $ 222.00.
     
  17. john1975

    john1975 Active Member

    Location:
    Boston
    Gung-Ho is correct if you drive uber with any regularity you will owe taxes. If you calculated none then just hope you don't get audited lol. I'd say 20% of your earnings should be saved for taxes. Chances are with deductions you will owe 15% or less, but better to be safe than sorry. Now if you have a w-2 with tax deductions from another job this may also help. As well as other losses such as real estate or investments.
     

Share This Page