Correct me if I am wrong...

Simon

Well-Known Member
This is the way I run my Ubering.


My operating cost per mile is $.59. I profit in my market.

Make note of your beginning miles and then when done for the night ending miles.

Multiply that by your per mile operating cost to see what your oop was for the night. Then subtract that from your after Uber earnings minus 15%(taxes,social security). Then you will have your profits for the night. Divide by the amount of hours to get your hourly wage (if you want but its a business not job, so that is pointless)

If your doing this full time then you will also need to deduct medical expenses and or life insurance(if you want it).

You cant profit doing this full time BTW.

From my study.. its impossible to profit from less that $1 per mile. If your market is that.. stop driving.
 

RainbowPlate

Well-Known Member
Where's the mileage allowance?

The one nice thing that Uberlyft could truthfully say (but dare not) is that most of whatever cash flow you net out is basically tax free, precisely because the deductible operating expenses are so high.

P.S. Your tax figure is also uninformed. See generally, "self-employment tax."
 

turbovator

Well-Known Member
This is the way I run my Ubering.


My operating cost per mile is $.59. I profit in my market.

Make note of your beginning miles and then when done for the night ending miles.

Multiply that by your per mile operating cost to see what your oop was for the night. Then subtract that from your after Uber earnings minus 15%(taxes,social security). Then you will have your profits for the night. Divide by the amount of hours to get your hourly wage (if you want but its a business not job, so that is pointless)

If your doing this full time then you will also need to deduct medical expenses and or life insurance(if you want it).

You cant profit doing this full time BTW.

From my study.. its impossible to profit from less that $1 per mile. If your market is that.. stop driving.
Finally a guy on here that has the ability to do the Uber math and a firm grasp on the true Uber bottom line. Way to go Simon!
 

Simon

Well-Known Member
  • Thread Starter Thread Starter
  • #5
Where's the mileage allowance?

The one nice thing that Uberlyft could truthfully say (but dare not) is that most of whatever cash flow you net out is basically tax free, precisely because the deductible operating expenses are so high.

P.S. Your tax figure is also uninformed. See generally, "self-employment tax."
What mileage allowance? There isnt any.

Enlightem me on the taxes. 15% just about covers state and federal taxes (but is adjusted according to individuals, but is a good round figure for daily profit calculations)
 

JMBF831

Well-Known Member
I was always thinking closer to 21% (vs 15%) to play it safe and to get a more accurate amount. So you're saying 15% is good enough to set aside for taxes, then?
 

UberBroke

Active Member
What mileage allowance? There isnt any.

Enlightem me on the taxes. 15% just about covers state and federal taxes (but is adjusted according to individuals, but is a good round figure for daily profit calculations)
Not all states have income tax
 

Simon

Well-Known Member
  • Thread Starter Thread Starter
  • #8
I was always thinking closer to 21% (vs 15%) to play it safe and to get a more accurate amount. So you're saying 15% is good enough to set aside for taxes, then?
Yes .. but Im talking about drivers doing Uber correctly and have a proper full time job.
 

LAuberX

Well-Known Member
Moderator
I was always thinking closer to 21% (vs 15%) to play it safe and to get a more accurate amount. So you're saying 15% is good enough to set aside for taxes, then?
depends, are you filing as single or married? how much does your spouse make?
the standard mileage deduction wiped out ALL the Uber 1099 income for ME and resulted in a huge tax return based on my wifes income... in no case did I have to pay even 15% because you don't make a profit driving Uber.

keep a mileage log, on paper, write down odometer reading at start and end of shift, keep it for 7 years.
 

JMBF831

Well-Known Member
depends, are you filing as single or married? how much does your spouse make?
the standard mileage deduction wiped out ALL the Uber 1099 income for ME and resulted in a huge tax return based on my wifes income... in no case did I have to pay even 15% because you don't make a profit driving Uber.

keep a mileage log, on paper, write down odometer reading at start and end of shift, keep it for 7 years.
I would be filing single (I'm not married). Thank you for the advice, so what else should I be keeping track of, aside from miles and gas expenses? If I'm not mistaken the IRS lets you deduct .55c/mile?
 

Don Oldenburg

Active Member
What mileage allowance? There isnt any.

Enlightem me on the taxes. 15% just about covers state and federal taxes (but is adjusted according to individuals, but is a good round figure for daily profit calculations)
Taxes... You have State Income Taxes and Federal Income taxes, but you also have to pay EMPLOYEE Fica tax just like you would if you were an employee. But because your self employeed you pay the EMPLOYER contribution as well.

The Federal Insurance Contributions Act (FICA) is the federal law that requires you to withhold two separate taxes from the wages you earn. It includes Social Security Tax and Medicare Tax at a flat percentage rate. The Social Security Tax is 6.2% rate of your wages, and the Medicare Tax is 1.45% of your wages. If you earn more than $200,000, you will also be taxed an additional 0.9% Medicare surtax. You’re not the only one paying for FICA, however. Your employer is also matching the Social Security Tax of 6.2% and the Medicare tax of 1.45% of your wages. This is extremely important to understand if you are an independent contractor, as you will be responsible for paying on your wages earned, and matching that amount, as you are your own employer. In other words, you are responsible for paying the entire 12.4% Social Security tax, and 2.9% Medicare tax.

So you pay 7.65% for EMPLOYEE side -- which you pay whether your an employee or self employed regardless,
AND
you pay 7.65 for EMPLOYER side contribution (matching). Because you are self employed -- you are technically your EMPLOYER also.

So your tax rate in your example of 15%, needs to be added to by 15.30% -- and honestly I think 15% for state and federal is a bit low -- but depending on marital status, and dependants, etc that changes individual to individual.

Also, how many deductions you can legally claim will benefit you big time also. ANYTHING business related to driving can be tracked and deducted. You only pay taxes for a business on your bottom line.

I deduct such things as:

Car Washes & Detailing
Gas
Insurance
Supplies (Water, Candy, Tylenol, Vomit Bags, Business cards, Air fresheners).
Any upgrades to your car... adding a refridgerator, dash cam, mounting hardware, etc.
I also include my meals if I eat while on the clock (fast food drive through between calls).

I'm sure I'm missing a few that I probably deduct... Bottom line, on paper it's not hard to show a loss -- but showing a loss on paper and reducing your tax liability is what just about every business tries to accomplish. The downside to tracking every little expense -- is if you need to show a larger income for credit approval, house purchase, etc... If you reduce your income with every little expense -- that bottom line figure is also what the banks will use to qualify you for a house loan, car loan, or credit card, etc. Less expenses shows a larger income.
 

Simon

Well-Known Member
  • Thread Starter Thread Starter
  • #14
Taxes... You have State Income Taxes and Federal Income taxes, but you also have to pay EMPLOYEE Fica tax just like you would if you were an employee. But because your self employeed you pay the EMPLOYER contribution as well.

The Federal Insurance Contributions Act (FICA) is the federal law that requires you to withhold two separate taxes from the wages you earn. It includes Social Security Tax and Medicare Tax at a flat percentage rate. The Social Security Tax is 6.2% rate of your wages, and the Medicare Tax is 1.45% of your wages. If you earn more than $200,000, you will also be taxed an additional 0.9% Medicare surtax. You’re not the only one paying for FICA, however. Your employer is also matching the Social Security Tax of 6.2% and the Medicare tax of 1.45% of your wages. This is extremely important to understand if you are an independent contractor, as you will be responsible for paying on your wages earned, and matching that amount, as you are your own employer. In other words, you are responsible for paying the entire 12.4% Social Security tax, and 2.9% Medicare tax.

So you pay 7.65% for EMPLOYEE side -- which you pay whether your an employee or self employed regardless,
AND
you pay 7.65 for EMPLOYER side contribution (matching). Because you are self employed -- you are technically your EMPLOYER also.

So your tax rate in your example of 15%, needs to be added to by 15.30% -- and honestly I think 15% for state and federal is a bit low -- but depending on marital status, and dependants, etc that changes individual to individual.

Also, how many deductions you can legally claim will benefit you big time also. ANYTHING business related to driving can be tracked and deducted. You only pay taxes for a business on your bottom line.

I deduct such things as:

Car Washes & Detailing
Gas
Insurance
Supplies (Water, Candy, Tylenol, Vomit Bags, Business cards, Air fresheners).
Any upgrades to your car... adding a refridgerator, dash cam, mounting hardware, etc.
I also include my meals if I eat while on the clock (fast food drive through between calls).

I'm sure I'm missing a few that I probably deduct... Bottom line, on paper it's not hard to show a loss -- but showing a loss on paper and reducing your tax liability is what just about every business tries to accomplish. The downside to tracking every little expense -- is if you need to show a larger income for credit approval, house purchase, etc... If you reduce your income with every little expense -- that bottom line figure is also what the banks will use to qualify you for a house loan, car loan, or credit card, etc. Less expenses shows a larger income.
Agree on all accounts.. i stab %15 as a good round figure because as you said each case is different.

However the PNL system is sound
 

Emp9

Well-Known Member
also i realized i have to have a mix of some surge to really make it worth it. under $1 i am gone.
 

LAuberX

Well-Known Member
Moderator
I would be filing single (I'm not married). Thank you for the advice, so what else should I be keeping track of, aside from miles and gas expenses? If I'm not mistaken the IRS lets you deduct .55c/mile?
Miles is the big one, if you take the mileage deduction the gasoline, maintenance, tires.. all that does not count. accounting services and business use of telephone would count but they won't add up to enough to help anyway.
log your miles both dead and paid if the app is on you are working my friend.
There will be so little profit FICA is not a concern 15 percent of nothing is nothing sadly we make nothing at the end of the year... I'm not saying don't save any money, you should ALWAYS be saving! Uber just makes it hard.
 
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