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Filed my taxes + uber 1099, here's what happened..

Discussion in 'Taxes' started by CJ ASLAN, Feb 12, 2015.

  1. CJ ASLAN

    CJ ASLAN

    Location:
    Los Angeles
    Driving:
    UberPLUS
    So last night I went in and got my taxes done. I have a w2 from work and this ugly 1099-K from Uber. Tax agent went ahead and filed a form 1040 (Schedule C) Profit or Loss from business form..

    Let me give you a quick rundown of my Uber 1099:

    Total "gross": $2889
    Total rides: 216

    Here's how my form looks and what expenses I wrote off. I did not take the standard deduction but he ended up just itemizing my expenses, which benefited me in the end.
    photo (3).JPG
    photo (4).JPG

    Basically, my expenses were "more" than my earnings as an independent contractor and I ended up paying $0 in taxes for Uber. He told me it would be better to just write off expenses than to take the standard mileage deduction. I didn't make a whole lot off Uber so this may not apply to everyone. What happens is if you show your business as a 'loss', you don't need to pay taxes in that situation, is what he said. I hope this helps shed some light on those who are still wondering how/what to do.

    If anyone in the Los Angeles area (westside) needs a reputable tax agent, I can refer you his #. He charged me $60 to file my w2 and a 1099, with direct deposit. Fast & knowledgeable. Got me back a nice refund :D:D:D
     
    Sicofit, mblatch, Huegow and 4 others like this.
  2. Moofish

    Moofish

    Location:
    O.C.
    Driving:
    UberX
    So, you didn't use the standard mileage deduction and chose to write off just the gas instead? No depreciation?
     
  3. Roogy

    Roogy

    Location:
    Seattle
    $313 for waters and snacks? On just $2800 in gross fares? Gotta say that is some creative accounting.
     
  4. CJ ASLAN

    CJ ASLAN

    Location:
    Los Angeles
    Driving:
    UberPLUS
    Not just the gas, car washes, phone, snacks/water..etc. It worked in my advantage to not use the mileage deduction. I don't care about the depreciation, I don't drive aimlessly looking for pings. My dead miles are pretty low and driving for uber, I put that into consideration. It is what it is and that's how I filed.

    Your point? Had I changed that to $150 would that have made you feel better? Yes, creative indeed.
     
    LAuberX likes this.
  5. Kamran

    Kamran

    Location:
    Somerset,NJ
    what about tips and toll?
     
    Rexsgirl, RAB and CJ ASLAN like this.
  6. CJ ASLAN

    CJ ASLAN

    Location:
    Los Angeles
    Driving:
    UberPLUS
    It's not my fault I offer
    Why would I report a whopping $40 in tips accumulated in 4 months?

    I drive in Los Angeles, I don't do tolls.
     
  7. How did you take into account what were personal expenses vs. business expenses?

    In other words was all that gas used for Uber only? How could you differentiate it?

    IRS may want to know in an audit.
     
    DexNex and CJ ASLAN like this.
  8. Bill Feit

    Bill Feit

    Location:
    Oceanside (San Diego) California
    Driving:
    UberXL
    Nice of you to share but not enough info to help average driver. I agree with other posters...think you will be in big trouble if audit. at $3.00 gal (not sure what you pay) you used 286 gallons of gas for only 216 trips??? No wonder you drank so much water! I will bet you did not keep track of actual miles, right? Share them if you did. I drove 18025 miles in 5 months!! about 6500 was trip miles.
     
  9. CJ ASLAN

    CJ ASLAN

    Location:
    Los Angeles
    Driving:
    UberPLUS
    If an audit happens, I'll worry about it then. I highly doubt I will be audited. So while you all are so concerned for me, I will enjoy this shrimp fried rice and finish up my work.

    But thank you for the insight.
     
  10. Bill Feit

    Bill Feit

    Location:
    Oceanside (San Diego) California
    Driving:
    UberXL
    Hey..why not take a chance on an audit rather than do it right? Hope you start keeping track of mileage this year if you are going to continue driving. I have a spreadsheet I can share with you if interested. Also, you might want to use SherpaShare..
     
    Last edited by a moderator: Aug 20, 2015
  11. CJ ASLAN

    CJ ASLAN

    Location:
    Los Angeles
    Driving:
    UberPLUS
    I appreciate the concern and advice. However, I took my taxes to a tax agent. I did not punch in these numbers myself. This is what he put in and I was just sharing what he did. Hopefully I don't fall into the 0.7% of people that do get audited annually. If I do get audited, I will take any actions necessary to correct the matter, including getting my tax agent involved. This is why I did not want to do them myself as I have been doing my own taxes for 10+ years. At least I have something to fall back on, worst case scenario.

    Can you email me the spreadsheet? cj.scope@gmail.com

    Thank you sir.
     
    Last edited by a moderator: Aug 20, 2015
    SnowDoll and Jujubeat like this.
  12. Ooooh, I completely overlooked the Safe Rider fees and commission for my expenses. Before I tack that on, is actually this a legitimate business expense? Because with over 1200 rides, that is a big ass chunk of change I could write off. Don't want to get in trouble for it, though.
     
    McGriddleShake and CJ ASLAN like this.
  13. Yeah, they are commissions & fees paid for Uber's lead-generation service.
     
  14. I would be worried about this tax person, and would not recommend him. (I'm a former CPA, by the way.) I would also immediately ask him about a few very obvious issues:
    1. The Standard Mileage Rate almost always works out in your favor. The only people who use Actual Cost Method are those who the IRS requires to (e.g. you own a fleet of cars). You are missing out on expense deductions included in the Standard Mileage Rate, like depreciation or maintenance (only about $0.30/mi of the rate is attributed to gas, so you basically only wrote off half of the expense you were allowed).
    2. Even if you use Actual Costs Method, car expenses like Gas go under Line 9 (Car Expenses), not as an Other Expense. See the Schedule C instructions.
    3. Even if you don't use the Standard Mileage Rate, you still need to track mileage and fill out Part IV. He did not fill this out.
    4. You cannot write off 100% of your gas costs, which is what I assume he did here. You can only write off the business portion of that cost. Even if you use the car solely for business, it likely includes some commuting costs that you cannot write off.
    5. If you get audited, you're on your own and have to get separate representation. There are all sorts of disclaimers that you signed away where he's not responsible for you filing a bad tax return.
    6. Why are you writing off utilities and supplies for a driving service business?
     
    CowboyMC, Miles907, DexNex and 15 others like this.
  15. CJ ASLAN

    CJ ASLAN

    Location:
    Los Angeles
    Driving:
    UberPLUS
    I will talk to him about that..if and when they audit, when does that usually happen? If I receive my refund in a few weeks and it's not rejected, when will I know if it's actually a 'problem' ?
     
  16. The IRS has a 3 year period to audit you, or 6 years if you substantially underreported your income (meaning you underreported income by 25% or more). Since you reported $0, basically they could argue the 6 year period for any amount >$0. (Separate question is "will they", but the IRS is cracking down a lot on independent contractors.)
     
    CJ ASLAN likes this.
  17. Thanks! This is helpful!
     
    Reneee and CJ ASLAN like this.
  18. WTF-uber

    WTF-uber

    Location:
    Washington DC
    Driving:
    UberX
    What about taking Section 179 deduction?
     
    CJ ASLAN likes this.
  19. Fuzzyelvis

    Fuzzyelvis

    Location:
    houston
    Driving:
    UberX
    FYI I am not a CPA but have been self employed in the past delivering newspapers and magazines and hot shot and also pizza (as an employee). I started off doing this in 1991 and was too cheap to pay an accountant. So I had to learn it all by reading (paper back then!) all the rules per the IRS. I can tell you that the numbers you have seem way out there to me and I agree completely with the poster who is a CPA that there are some very questionable things going on with your return.

    Having said that my brief foray into hot shot delivery years ago did show a loss (I decided quickly it was not profitable due to the high mileage for the money). But I kept meticulous records of mileage. I can certainly see where ubering could show a very low or no profit but if you are in that category you better be able to back it up. I don't understand how anyone is doing this and not keeping track of mileage quite honestly. It's the biggest expense and if disallowed would really increase the taxable income. I'm not sure what your tax guy is thinking if you haven't been told to do that. He sounds like the accountant version of a quack.
     
  20. Sydney Uber

    Sydney Uber

    Location:
    Sydney Australia
    Driving:
    UberBLACK
    It was Evian, of course each rider was gonna have one!
     

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