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I'm VERY ConFuSed ABOUT taxes! Please help!

UberBastid

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.'
Why are yu making it so hard?
Are you afraid of the IRS?
You don't make enough money from Uber to PAY taxes.
And the IRS doesn't care about you.
Feggit about it.
 

Greenfox

Well-Known Member
  • Thread Starter Thread Starter
  • #22
Why are yu making it so hard?
Are you afraid of the IRS?
You don't make enough money from Uber to PAY taxes.
And the IRS doesn't care about you.
Feggit about it.
Thank you. Love ya bro. And yeah Im scared of them, they already got me once.
 

lyft_rat

Well-Known Member
It is really simple. Take the total miles you drove your car (whether Uber or not). This mileage is on your service receipts, annual inspections, etc. (I keep a service log where I make an entry everytime something is done to the car.) If you don't know the exact number, make an educated guess. Just make sure you can reasonably prove that the car was driven that far. Deduct miles times $0.58 or whatever the current number is. You will be close to tax-free or at least pay very little tax. If you want to be more conservative, you can deduct a small number of miles for personal use.
 
Last edited:

Greenfox

Well-Known Member
  • Thread Starter Thread Starter
  • #24
It is really simple. Take the total miles you drove your car (whether Uber or not). This mileage is on your service receipts, annual inspections, etc. (I keep a service log where I make an entry everytime something is done to the car.) If you don't know the exact number, make an educated guess. Just make sure you can reasonable prove that the car was driven that far. Deduct miles times $0.58 or whatever the current number is. You will be close to tax-free or at least pay very little tax. If you want to be more conservative, you can deduct a small number of miles for personal use.
Thank you guys.

Puts my mind at ease.

Thought I was gonna owe like hundreds
 

TPAMB

Well-Known Member
Please contact a licensed tax professional. Unlike a 1040EZ, this is not for the do it yourself accountant. Make sure whomever you chose that they are familiar with the tax ins and of ride-share.

Good luck!
 

UberBastid

Well-Known Member
Tolls aren’t deductible if they are reimbursed, so be careful.
QUIT FRETTING ABOUT TAXES

You don't make enough to even PAY any taxes.
Youl gotta actually HAVE income to be able to deduct from it.

Till you get to $80k per year income from driving, don't fret about it.
Your president has reduced your taxes to almost nothing at our income level - and he is talking about reducing again.
 

TCar

Well-Known Member
Question: Uber reimburses me for tolls i pay while customer is in car. I still pay them. All other tolls I pay are directly because of U/L. I maybe pay $10 a year in tolls before U/L.

Does anyone have prior experience on how they deducted tolls as a tax write off in past?
 

UberBastid

Well-Known Member
Last time I got 'audited' I just asked them, "IF I have NO documentation for the question you have - how much would I owe you?"
The answer was about $75.
It wasn't worth my time.
"Send me a bill."

Done.

You guys can fret about pennies all you want - I can't.
 

UberTaxPro

Well-Known Member
Past Sponsor
Question: Uber reimburses me for tolls i pay while customer is in car. I still pay them. All other tolls I pay are directly because of U/L. I maybe pay $10 a year in tolls before U/L.

Does anyone have prior experience on how they deducted tolls as a tax write off in past?
Tolls that are reimbursed by Uber/Lyft are not deductible on your tax return. Tolls not reimbursed are 100% deductible. Same for all expenses actually.
 

Stevie The magic Unicorn

Well-Known Member
Tolls that are reimbursed by Uber/Lyft are not deductible on your tax return. Tolls not reimbursed are 100% deductible. Same for all expenses actually.
Reimbursed tolls aren't taxable either.


An alternative accounting method is to write up all revenues paid as revenue and all expenses as deductions. Less changing numbers from one category to another when you get paid for tolls days later.

The math works out exactly the same but when you get a toll payment days later you aren't adding to your paid toll ledger while subtracting from your unpaid tolls ledger, or visa versa when a paxhole gets a toll add on reversed. It also reduces the number of lines per day on your accounting ledger and simplifies things.



I've always found it much easier to write up all the tolls as deductions and all monies paid to me as revenue.

$95 revenue
$5 toll reimbursements
VS

$100 revenue
$5 tolls

both equal $95 in taxable revenue.

If you get audited you simply break out your toll records as a write off, while reporting all the money that hits your bank account as revenue.

It's only "double dipping" if you don't report the toll payments as revenue.
 

UberTaxPro

Well-Known Member
Past Sponsor
Reimbursed tolls aren't taxable either.


An alternative accounting method is to write up all revenues paid as revenue and all expenses as deductions. Less changing numbers from one category to another when you get paid for tolls days later.

The math works out exactly the same but when you get a toll payment days later you aren't adding to your paid toll ledger while subtracting from your unpaid tolls ledger, or visa versa when a paxhole gets a toll add on reversed. It also reduces the number of lines per day on your accounting ledger and simplifies things.



I've always found it much easier to write up all the tolls as deductions and all monies paid to me as revenue.

$95 revenue
$5 toll reimbursements
VS

$100 revenue
$5 tolls

both equal $95 in taxable revenue.

If you get audited you simply break out your toll records as a write off, while reporting all the money that hits your bank account as revenue.

It's only "double dipping" if you don't report the toll payments as revenue.
Yes you're correct about it coming out the same on the bottom line. However if one cares about following
Generally Accepted Accounting Principles (GAAP) what you're suggesting is incorrect from an accounting viewpoint. Yes, you'd have no problem at an audit with your method. However, you would be misstating Revenues and Expenses and that bugs some people!
 

Pogo99

New Member
By IRS rules one can have loss in 3 out of 5 years. State tax laws are different. I drive in a state that has no state income tax
 

Stevie The magic Unicorn

Well-Known Member
Yes you're correct about it coming out the same on the bottom line. However if one cares about following
Generally Accepted Accounting Principles (GAAP) what you're suggesting is incorrect from an accounting viewpoint. Yes, you'd have no problem at an audit with your method. However, you would be misstating Revenues and Expenses and that bugs some people!
Screw gaap,

Accrual accounting is a pain in my furry behind.

*for a taxi driver it's almost irrelevant, as i get paid same day for the fares i give* (even credit/account fares)

I also don't need to factor in expenses in the future, I don't use my own car, all expenses are done and final, i could never drive a cab ever again and there would be no new expenses. The taxi rental is flat rate, completely controlled without anything unexpected hitting ever.

I have no investors, i'm not publicly traded, i could give a FF about accounting the correct way.

All i care about is that i'm turning a profit *cough* screw uber *Cough* and that the IRS won't be on me.

I also don't have proper accounting software, just an open office math spreadsheet on google docs and a shoe box full of receipts that are ziplock bagged by week.

Truth of the matter,

I actually have an accurate set of books, which is miles ahead of 99% of taxi/uber drivers.
 
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