I've been driving in Santa Fe for almost 2 years now and just found out about having to pay gross receipts. Even though with all of my expenses it's still better to drive for Uber and Lyft and enjoy myself while making a little bit of money then sit around and do nothing and not make any money. It's hard to find enjoyable work as well as any work here in Santa Fe if you're older than 40. I have specific rideshare insurance which I get from Geico. It's the cheapest one you can get here in New Mexico and it solves the problem of insurance company finding out you're driving for rideshare company.I'm new to Uber but spent a lot of time researching before driving. I decided not to drive. I'm trying to understand why anyone does this in NM?
If a customer is charged $20 for a fare what do I clear after the following are subtracted.
1) Uber fee
2) Gross Receipts Tax
3) Personal Income Tax
4) Fees to register as legitimate business in NM
5) Gas (now 2.35 gallon) plus wear and tear on auto.
I'm sorry but it appears to me this job is far less than minimum wage. I don't understand why anyone would drive for uber in NM unless they choose to ignore the math.
Wow I forgot the part about what happens when your insurance company finds out you drive for Uber. I'm sure your rates go up. What about your warranty on your car? Assuming you have a newer car, using it for Uber will surely void your warranty. There are so many financial pitfalls with this arrangement, and Uber is passing them on to drivers in the hopes they never figure it out. I figured it out.