How much should I expect to pay in taxes?

tacotime

Member
I just started driving this year so I will file in 2020. How much should I put aside from each payout to cover my income tax when I file in PA?
 

Merc7186

Well-Known Member
This is an open ended question as it depends on your income vs mileage ratio. Personally, I stash away 25% for taxes, maintenance and new vehicle fund.
 

DriverMark

Well-Known Member
Really depends. My mileage covers my ride share taxes. But I also have a herd of children/dependents and other deductibles. I would certainly stash some coin to be safe, and if you end up not needing it you now have a savings for auto repairs.
 

mmn

Well-Known Member
It will only be a problem the first year. If you show a profit you will likely be paying quarterly after that, and the amount to budget for will become clearer.
 

FLKeys

Well-Known Member
I just started driving this year so I will file in 2020. How much should I put aside from each payout to cover my income tax when I file in PA?

This is a very basic way to estimate your taxes. While not perfect, it should be close enough.

Weekly Payout - (total miles driven x $0.58/mile) = Net Income.
Net Income x 30% to cover federal taxes and self employment taxes = Amount to save.

Example:

$750 weekly pay
1293 miles driven x $0.58 = $749.94
Taxable earnings is $0.06 (This is your break even point for taxes)

$750 weekly pay
1100 miles driven x $0.58 = $638.00
$750 - $638 = $112.00
$112.00 x 30% = $33.60 put away for taxes.
 

losiglow

Well-Known Member
Yes, you'll have to pay social security either way. So I'd set aside at least 10%.

In my two years, I've never had to pay income tax. The $0.56 per mile tax deduction has more than offset my fares.

I do destination mode to the airport in the morning, then turn off UberX and do only Select during my drive from the airport to work, then Select back home. Rarely get rides on Select of course but it has the dual advantage of only getting occasional higher paying Select rides as well as stacking that mileage up.
 

SuzeCB

Well-Known Member
This is an open ended question as it depends on your income vs mileage ratio. Personally, I stash away 25% for taxes, maintenance and new vehicle fund.
Agree. In all honesty, especially with this year's vehicle allowance of $0.58, you should end up paying VERY little, if any, taxes on your TNC driving.

Putting 25% of your gross is a good start in preparation, though, and if you don't need it or need it all when you do your taxes, you will have saved some money to do with as you need to or want to.
 

Ubergaldrivet

Active Member
I’m an ex irs person who drove 887 trips around 10k in mileage. Just remember ordinary and necessary for your industry. Phone, yup, apple rents them you know. Phone plan, yup. Car washes, yup. 10,000 x .54= 5400. I had a nice small loss, which can offset the income from my real job. Just remember your mileage logs must exist!!
 

Ssgcraig

Well-Known Member
I just started driving this year so I will file in 2020. How much should I put aside from each payout to cover my income tax when I file in PA?
10%$0 to $9,52510% of taxable income
12%$9,526 to $38,700$952.50 plus 12% of the amount over $9,525
22%$38,701 to $82,500$4,453.50 plus 22% of the amount over $38,700
24%$82,501 to $157,500$14,089.50 plus 24% of the amount over $82,500
32%$157,501 to $200,000$32,089.50 plus 32% of the amount over $157,500
35%$200,001 to $500,000$45,689.50 plus 35% of the amount over $200,000
37%$500,001 or more$150,689.50 plus 37% of the amount over $500,000
 
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