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I am on Social Security so I do not file taxes....

Discussion in 'Taxes' started by louvit, Dec 30, 2016.

  1. louvit

    louvit Active Member

    Location:
    Brandon Fl
    Driving:
    UberX
    What do I do know? I only started UBER a few months ago. Do I really need to file a tax return and if so what do I get to write off on my earnings. I know nothing about taxes and always used like HR block or something. I just hate to pay 200+ for an income of maybe 2k this year and not knowing what to write off. I haven't saved gas receipts or anything.. Some one help me...lol
     
  2. Older Chauffeur

    Older Chauffeur Well-Known Member

    Location:
    Simi Valley Ca
    I hope you kept a mileage log. That alone would allow you to write off most of the income you have from Uber, at $0.54 per mile. If your net is $400 or more after all expenses you will owe FICA (Social Security and Medicare) on your self employment income, even if you don't owe income taxes.
    You can also write off the portion of your cellphone bill that you incurred from ridesharing. If you provide water, mints, etc you can deduct those costs, but you would need receipts if you were audited.
    Sounds like another visit to H&R Block is in order. Start the new year the right way, by tracking all business mileage (odometer readings at the start/end of each shift.)
     
  3. Older Chauffeur

    Older Chauffeur Well-Known Member

    Location:
    Simi Valley Ca
    Forgot to mention that Uber will be sending you a 1099 showing your earnings, and they will also file it with the IRS. They in turn will be looking for your matching tax return.
     
  4. Ab85

    Ab85 Member

    Location:
    Los Angeles
    so it does not matter, you haven't kept any receipts but since you make 2k; you have to file taxes and you can deduct a lot. Just pm I will explain. I have been doing 1099 for four years now and they don't check your receipts it is all estimate.
     
  5. Older Chauffeur

    Older Chauffeur Well-Known Member

    Location:
    Simi Valley Ca
    Well, I've been filing tax returns based on 1099 income for fourteen years, and I can assure you that if you are audited, the IRS will definitely want to check your receipts and your records. "Estimates" won't fly.
     

  6. Mears Troll Number 4

    Mears Troll Number 4 Well-Known Member

    Location:
    Orlando
    Driving:
    Taxi
    There's always the "Cohen" rule. But betting on the Cohen rule is like saying "the dog ate my homework".

    A friend of mine (totally not me i swear) lost 275/300 of his daily trip receipts for one of his years he worked. His accountant ended up just taking the average of the 25 he did have and successfully use that for substantiation of his expenses/deductions for all 300 of the days he worked that year.

    The IRS can do 3 things when someone brings up the Cohen rule when discussing deductions.

    1. accept it as the truth
    2. give you partial credit
    3. Deny everything you don't have receipts for
     
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  7. Older Chauffeur

    Older Chauffeur Well-Known Member

    Location:
    Simi Valley Ca
    Okay, but your friend had an established business and at least partial records. The OP said he has nothing. Also, was your friend audited for that year? If not, just because his accountant was willing to accept it doesn't prove anything.
    My CPA is pretty demanding when it comes to my mileage log, etc, and I doubt he would allow me that latitude, even though there's a disclosure that I sign that puts all responsibility for the integrity of the information I supply directly on me.
     
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  8. Mears Troll Number 4

    Mears Troll Number 4 Well-Known Member

    Location:
    Orlando
    Driving:
    Taxi
    Yes he was audited for that year...

    I asked him about it this morning and he had more verification than I originally thought, all he lost was $4000ish in gas receipts. He was able to recontruct documentation for his 25,000 in vehicle lease, 13,000 or so in tolls/airport fees and the cab company confirmed all of his numbers except the gas, and the IRS let him deduct 1/2 of what he claimed in gas.
     
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  9. RamzFanz

    RamzFanz Well-Known Member

    Location:
    Saint Louis
    Really, for $2,000 in income, it's just not a big deal. You can use your Uber logs as documentation to deduct as many miles as they tracked while on trips. However, miles between rides are deductible too and should have been tracked. Several apps will do this automatically for you.

    Personally, I would estimate the between miles by doubling the documented miles, but that's me. They don't audit people earning $2,000 and with so few miles a log book would be easy to create, uh, retroactively.

    You don't need receipts for most Uber deductions.
     
  10. Alice Arifova

    Alice Arifova New Member

    Location:
    United Kingdom
  11. Scuba Steve

    Scuba Steve Active Member

    Location:
    USA
    Driving:
    UberX
    If the only income you have for the year is a few thousand on Uber, I wouldn't bother filing. Nothing will happen. Speaking from first hand experience here
     
  12. louvit

    louvit Active Member

    Location:
    Brandon Fl
    Driving:
    UberX
    That’s what I originally thought. I am only allowed to make 750. A month anyway or they mess with my SS.



    thanks
     
  13. Older Chauffeur

    Older Chauffeur Well-Known Member

    Location:
    Simi Valley Ca
    It may take awhile, but eventually the IRS computer is going to look for a return to match the 1099misc that Uber sends to both an IC and the IRS, not to mention the FICA taxes on profit if the net is $400 or more.
     
  14. Older Chauffeur

    Older Chauffeur Well-Known Member

    Location:
    Simi Valley Ca
    Are you sure you fully understand the Social Security earnings limits? If you have just started drawing they figure in your work earnings, but you said in another thread that you retired ten years ago.
    Even if you are on SSDI with different limits, the earnings limits shouldn't be a problem after you deduct expenses. Have you asked at your local office how being a self employed, independent contractor would affect your benefits? I think the limit was raised in 2016 to $810 per month, but there's a trial period that may complicate things if you are working foe someone else. There are different rules for business owners, which should be your classification. Worst case, you could just drive each month until you hit the limit, then cool it until the start of the next month.
    Have you settled the insurance issue that was causing you concern?
     
  15. UberTaxPro

    UberTaxPro Well-Known Member

    Location:
    CT
    Driving:
    UberX
    If the IRS computer doesn't think you owe money they might not bother you for a while. Why would they? Eventually they'll file the returns for you with 0 deductions and send you a bill. As soon as you get tagged as owing money you'll move up the priority list fast and then those unfiled returns will bite you in the butt. Also, keep in mind that after 3 years you lose forever the right to claim any refund from any unfiled return. The IRS however has 10 years to collect starting from the time they assess the tax (when they file them for you with no deductions and send you a bill) . The odds are already stacked against you, and by not filing you are just making it easier for the IRS to collect more money from you than you would have paid if you'd filed your returns. Also, not filing is illegal and you could receive an unexpected visit from a gung ho agent looking to make a name for himself at your expense. Even if you don't pay what you should when you file, it's always better to at least file the return. This will keep you in the Collections Dept. of the IRS and out of the criminal dept.
     
    Last edited: Jan 12, 2017
    Older Chauffeur likes this.
  16. Scuba Steve

    Scuba Steve Active Member

    Location:
    USA
    Driving:
    UberX
    It wouldn't be worth their time and money to charge some broke uber driver with a felony for failing to file for the small amounts I'm dealing with.
    I'd make them give me a jury trial and all of that.

    Isn't my tax liabilty $0 anyways if I earn below a certain amount?
    It may be different as an independent contractor, but if I was a W2 employee making this amount, I would be getting 100% of my taxes returned.
     
  17. UberTaxPro

    UberTaxPro Well-Known Member

    Location:
    CT
    Driving:
    UberX
    "It wouldn't be worth their time and money to charge some broke uber driver with a felony for failing to file for the small amounts I'm dealing with." I agree but why take the chance anyway? Tax problems have a way of snowballing after a while.
    "Isn't my tax liabilty $0 anyways if I earn below a certain amount?" Yes, the amount depends on your filing status.
    "It may be different as an independent contractor" Yes it is, over $400 you have to file.
    "if I was a W2 employee making this amount, I would be getting 100% of my taxes returned." Only if you file! ;)

    If you are eligible for refundable tax credits (which means that you can get a refund even if you don’t owe any taxes), such as the EITC, you must file your taxes to get these credits – refundable credits also include the American Opportunity Credit and the child tax credit
     
    Older Chauffeur likes this.
  18. DexNex

    DexNex Well-Known Member

    Location:
    Seattle, WA
    Driving:
    UberSELECT
    You are operating you own business as an independent contractor. You need to help yourself.
     
  19. louvit

    louvit Active Member

    Location:
    Brandon Fl
    Driving:
    UberX
    If you make like 900.00 a month it is considered part of a 9 month trial period to see if you can go back to work. I went to the office and the figure was about 750.00 and I do not have to report any earnings to them. All I really remember is that 750 or 800 was a safe figure
     
  20. Older Chauffeur

    Older Chauffeur Well-Known Member

    Location:
    Simi Valley Ca
    Right, they figure if you can work enough to make a minimum amount each month during that trial period, you are healthy/fit enough to get a job.
     

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