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I'm VERY ConFuSed ABOUT taxes! Please help!

Greenfox

Well-Known Member
So....basically, can you report a LOSS?

And Not pay taxes or pay super cheap?

Like, this is what i'm thinking...

TAX DEDUCTIONS:

(i know you can't deduct tolls, having said that)

-miles
-gas ??
-phone / internet
-car washes/details/etc
-oil changes - matienence
-seat covers
-dashcam
-other??? (puke buckets, blankets, stuff to clean car?)


SO *if* those can all be deducted, the next question would be...

How much of my TAXABLE income am I paying? Someone from the Bay Area / California that has actually done this, I would appreciate insight.

Stae/Federal/((local??))

Im so confused. Is it a Lot or are we talking like a few hundred bucks on, SAY, 30k a year?
100k?

Can your DEDUCTIONS be greater than your earning?

Can they OWE you money? *hahaha*

HELP PLEASE!

I want to do this the good ol' Amneri(kkantAXyouToDEatH!)can way.'
 

losiglow

Well-Known Member
Get TurboTax. And I don't recommend itemizing. Take the standard deduction which I believe is $0.56 per mile. That takes into account all of your expenses. The exception is if you drive a vehicle that is expensive to operate (e.g. poor gas mileage, lots of repairs, high maintenance costs).

And yes, the IRS will consider you to have taken a loss if your mileage x $0.56 doesn't equal your fares. For example, if you drove 30,000 miles but only made $10,000, you'd be at a loss because 30,000 x $0.56 = $16,800. That would be a $6,800 loss. However, you'd have to have driven with the worst tactics and least efficiency possible to do that badly.

My first year, the IRS considered me to have taken a loss of $900. But the subsequent years my deduction from mileage was less than the fares, so I had to pay some taxes. But it was only on the amount minus the deduction which wasn't a whole ton.
 

Greenfox

Well-Known Member
  • Thread Starter Thread Starter
  • #3
Get TurboTax. And I don't recommend itemizing. Take the standard deduction which I believe is $0.56 per mile. That takes into account all of your expenses. The exception is if you drive a vehicle that is expensive to operate (e.g. poor gas mileage, lots of repairs, high maintenance costs).

And yes, the IRS will consider you to have taken a loss if your mileage x $0.56 doesn't equal your fares. For example, if you drove 30,000 miles but only made $10,000, you'd be at a loss because 30,000 x $0.56 = $16,800. That would be a $6,800 loss. However, you'd have to have driven with the worst tactics and least efficiency possible to do that badly.

My first year, the IRS considered me to have taken a loss of $900. But the subsequent years my deduction from mileage was less than the fares, so I had to pay some taxes. But it was only on the amount minus the deduction which wasn't a whole ton.
OK I KIND OF get it. So, for example:

The rate in SF is I believe 68c per mile. Then 60c per mile in Sacramento ....but is it based on TOTAL earnings then, not what they pay US per mile? OK so basically, for Math sake, say my TOTAL take was like 20k, and deducting that PER MILE does it say in the aps what your total milage is or do you have to take care of that? Some EXAMPLE numbers would be awesome, if you can please help.

Thanks.

*like I wanna know if I need a few HUNDRED or a few THOUSAND come tax time?

Lets say FOR MATH sake, you make

20k
and drove I dunno, 15k miles. What would it be APPROXIMATELY?

Any help is great.

Federal, state AND LOCAL?

(I usually dodge my returns for my MAIN job, so....)
 

KK2929

Well-Known Member
My advice -- taxes for Independent Contractors is confusing as you know. Keep all your receipts that are connected to driving ride share. Gas, car service or repairs, car insurance, car wash , all equipment used for ride share, everything.
Go to a tax specialist , like H.R. Block. ( Make certain you get an experienced person with experience in ride share filing ) Let them do your taxes.
If you had a hard time doing taxes as an employee, doing them as a ride share driver will be VERY difficult.
For offices like H.R. Block, I read reviews and when I see a name keep appearing with positive reviews, I call the office and talk to the person. I ask what is their experience doing RS tax filings. This is a new area for tax preparers. Many do not understand the best way to file and the tax changes of 2018, did not help.
 

Greenfox

Well-Known Member
  • Thread Starter Thread Starter
  • #5
My advice -- taxes for Independent Contractors is confusing as you know. Keep all your receipts that are connected to driving ride share. Gas, car service or repairs, car insurance, car wash , all equipment used for ride share, everything.
Go to a tax specialist , like H.R. Block. ( Make certain you get an experienced person with experience in ride share filing ) Let them do your taxes.
If you had a hard time doing taxes as an employee, doing them as a ride share driver will be VERY difficult.
For offices like H.R. Block, I read reviews and when I see a name keep appearing with positive reviews, I call the office and talk to the person. I ask what is their experience doing RS tax filings. This is a new area for tax preparers. Many do not understand the best way to file and the tax changes of 2018, did not help.
I wish there was just a way to do it myself. And I am keeping all receipts. So far, anyways. I am a smart person, it can't be THAT hard. I dunno. Can someone give me an example of MONEY MADE and the taxes PAID?
 

I will crack Lyft hacks

Well-Known Member
So....basically, can you report a LOSS?

And Not pay taxes or pay super cheap?

Like, this is what i'm thinking...

TAX DEDUCTIONS:

(i know you can't deduct tolls, having said that)

-miles
-gas ??
-phone / internet
-car washes/details/etc
-oil changes - matienence
-seat covers
-dashcam
-other??? (puke buckets, blankets, stuff to clean car?)


SO *if* those can all be deducted, the next question would be...

How much of my TAXABLE income am I paying? Someone from the Bay Area / California that has actually done this, I would appreciate insight.

Stae/Federal/((local??))

Im so confused. Is it a Lot or are we talking like a few hundred bucks on, SAY, 30k a year?
100k?

Can your DEDUCTIONS be greater than your earning?

Can they OWE you money? *hahaha*

HELP PLEASE!

I want to do this the good ol' Amneri(kkantAXyouToDEatH!)can way.'
What is confusing? Your driving people for no net profit. Basically you have a hobby. Deduct cell phone, gas, all miles to and from and while cruising for pax. Deduct .58$ per mile. You’ll end up without income or a few box. Taxes are for people who work for money, not us.
 

Greenfox

Well-Known Member
  • Thread Starter Thread Starter
  • #7
What is confusing? Your driving people for no net profit. Basically you have a hobby. Deduct cell phone, gas, all miles to and from and while cruising for pax. Deduct .58$ per mile. You’ll end up without income or a few box. Taxes are for people who work for money, not us.
so BASICALLY I'm paying NO taxes? BASICALlY? I was FREAKING OUT with a few thousand dollars hitting my account thinking the government was going to take it, all! 0.o
 

losiglow

Well-Known Member
Well, if you're in California, chances are you'll pay some taxes either way. I'm not be facetious. We're at 4.95% in Utah and you're at 12.3% in Cali. One more reason why I moved away.

Don't concern yourself with the fares you're earning. Income tax has nothing to do with the per mile or per minute rate. The $0.56 I'm referring to is the IRS writeoff meaning the amount that you don't have to pay taxes on.

20k
and drove I dunno, 15k miles. What would it be APPROXIMATELY?
Well, according to the deduction, that would be 15,000 x $0.56 = $8,400.
$20,000 - $8,400 = $11,600 that is tax liable.

As far as how much you'd have to pay - that depends on other deductions (non-Uber) and your total wages if you have other jobs. If all you made was $20K in a year, then I don't think you'd have to pay much of anything. That's below poverty level. However, if you made $100K, then you'd definitely have to pay something. However, if you made $100K and had a mortgage, 4 kids, and were married, you would pay much less since those provide tax deductions and child credits.
 

Greenfox

Well-Known Member
  • Thread Starter Thread Starter
  • #10
Well, if you're in California, chances are you'll pay some taxes either way. I'm not be facetious. We're at 4.95% in Utah and you're at 12.3% in Cali. One more reason why I moved away.

Don't concern yourself with the fares you're earning. Income tax has nothing to do with the per mile or per minute rate. The $0.56 I'm referring to is the IRS writeoff meaning the amount that you don't have to pay taxes on.



Well, according to the deduction, that would be 15,000 x $0.56 = $8,400.
$20,000 - $8,400 = $11,600 that is tax liable.

As far as how much you'd have to pay - that depends on other deductions (non-Uber) and your total wages if you have other jobs. If all you made was $20K in a year, then I don't think you'd have to pay much of anything. That's below poverty level. However, if you made $100K, then you'd definitely have to pay something. However, if you made $100K and had a mortgage, 4 kids, and were married, you would pay much less since those provide tax deductions and child credits.
My OTHER Job with the sick and dying pays me about 27,000 a year PLUS whatever I'm (not) making with uber / lyft! And yes I will take advice from this forum!

That's GROSS too which they ALREADY TAX.
 

losiglow

Well-Known Member
I still say TurboTax. I use it every year. And my taxes are kind of a headache. Day job, side job, rideshare, married, kids, mortgage, charity, etc. Of course, the standard deduction makes that a bit easier now. But still, TurboTax does a great job at all that so I'm sure it will do just fine for you.
 

25rides7daysaweek

Well-Known Member
My OTHER Job with the sick and dying pays me about 27,000 a year PLUS whatever I'm (not) making with uber / lyft! And yes I will take advice from this forum!

That's GROSS too which they ALREADY TAX.
A lot of people here complain about money all the time. Some others drive the car and
make a decent living. about 1/3 of the money I would have had to pay in taxes was deductable. The more you make the more you'll owe. Put about 20% away for repairs and taxes you'll be fine.
 

I will crack Lyft hacks

Well-Known Member
so BASICALLY I'm paying NO taxes? BASICALlY? I was FREAKING OUT with a few thousand dollars hitting my account thinking the government was going to take it, all! 0.o
You’ll be airtight. Did you keep any recipes? I don’t think you should worry heavily. Most of us e the flexibility and tax advantage of this job as the only benefit. Maybe put 1,000 aside. You can make a payment plan if needed. But with the rates and the IRS tax deduction for mileage .58 you should be almost at no profit for tax porpoise. Claim the most mileage you think you can, deduct cell phone and car insurance. Keep deducting more miles under you have almost no tax burden. ?
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No, i get free housing, 100.00 a month. Thanks, (company that f***** me and will Not be NAMED)! lol they were good for something. Napa is NICE this time of the year.

BESIDS I'm sly like a fox.
I’m in Sonoma county, My two bedroom is apartment is 2,400$. I don’t know if I should move to Arizona or just ram my car into Uber HQ and call it quits. Lol.
 
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Seamus

Well-Known Member
I Of course, the standard deduction makes that a bit easier now.
Quite an expensive elimination of schedule A. Yeah it's easier but at a very high price!!!
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I still say TurboTax. I use it every year. And my taxes are kind of a headache. Day job, side job, rideshare, married, kids, mortgage, charity, etc. Of course, the standard deduction makes that a bit easier now. But still, TurboTax does a great job at all that so I'm sure it will do just fine for you.
I also use TurboTax but for someone who has no idea how to do their taxes let alone schedule C it's probably a good idea to go to someone who has actually done rideshare taxes before (not some wannabe at HR Block). Once they learn and understand they can easily transition to doing it themselves.
 

Launchpad McQuack

Well-Known Member
Deduct cell phone, gas, all miles to and from and while cruising for pax. Deduct .58$ per mile.
This is what you have to watch out for when you seek tax advice on an Internet forum. You can't deduct gas and mileage. It is one or the other. You can either deduct mileage at the standard mileage rate or you can track your actual expenses of operating your car and deduct those. Gas falls under actual expenses, so you can't deduct it if you are deducting mileage. Of course, the people that tell you to do this will speak as if they know what they're talking about.

If you deduct actual expenses, you still need to track mileage because you have to prorate actual expenses based on the percentage of business use of the vehicle. You need the mileage records in order to determine the percentage of business use. So lets say that you drove 30,000 miles for rideshare and you drove 10,000 miles for personal reasons. If you deduct actual expenses, you can only deduct 75% of your gas costs because that is your percentage business use of the vehicle {30/(30+10)}.
 
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