Pay Estimated Taxes or Wait?

wcudude09

New Member
Hey guys, I'm a new Uber drive here because WV just started earlier this week. I have a question as a part-time driver. I have a salary full-time job (47k) and plan to work Uber as a part-time gig. My dilemma is that there will be some months (July-October) that I work 10-30 hours a week and some months (Sept-April) that I will work very few hours like 1-5.

I don't want to adjust my withholding at work because there will be some months I earn very little using Uber. So what's the best way? Just pay the estimated taxes by how much money I've earned that quarter or wait until tax filing season? I am using the Hurdlr app to track mileage.

Any recommendations would be greatly appreciated. Sorry if these are dumb questions. Just really new at this.
 

Older Chauffeur

Well-Known Member
By deducting mileage and other expenses like cell phone bills, you probably won't make much profit. I'm not a tax professional, but I'm guessing that you will be fine without paying quarterly estimated taxes.
 

UberTaxPro

Well-Known Member
Sponsor
Hey guys, I'm a new Uber drive here because WV just started earlier this week. I have a question as a part-time driver. I have a salary full-time job (47k) and plan to work Uber as a part-time gig. My dilemma is that there will be some months (July-October) that I work 10-30 hours a week and some months (Sept-April) that I will work very few hours like 1-5.

I don't want to adjust my withholding at work because there will be some months I earn very little using Uber. So what's the best way? Just pay the estimated taxes by how much money I've earned that quarter or wait until tax filing season? I am using the Hurdlr app to track mileage.

Any recommendations would be greatly appreciated. Sorry if these are dumb questions. Just really new at this.
You need to set up some bookkeeping if you haven't already. A mileage log is a big part of your bookkeeping. If your records tell you you're making money you may need to file estimated taxes. If you're breaking even or losing money you don't have to. Get your bookkeeping organized and the numbers will tell you what you need to do.
 

Larry1024

New Member
I would recommend using triplogmileage to track your mileage for tax purposes since it was the difference to me where I didn't have to pay taxes using this to document the mileage since it did it for you.
 

rperez14

New Member
Hi and welcome to the 2 jobs life.

I agree with UberTaxPro member, if you started to work with UBER or lets say any part-time business that reports independent income, get your bookkeeping straight, and start now.

If you already have a W2 job, believe me, the last thing you need is a side business net income with no expenses' record. Start tracking your uber mileage as this is what is going to give you the most benefit when reporting expenses.

Answering your question, you don't have to pay (or plan) for estimated taxes now. There is a possibility that your actual earnings (money left after uber fees and mileage deductions) wont be that much, and you don't have to break your head with estimated tax or federal tax withholding for now.

Just keep track of your uber mileage for now, mileage, toll and parking fees are going to be your big guns in your uber deductions. I personally use Everlance, it helps me keep track of all my expenses and it is great for reporting.

Good luck in the two jobs life. it is fun!

Tip: uber or work mileage deduction is calculated at 1mile*.0.54. Let's say you drive 10,000 miles between now and Dec 31, do the math, that is an actual deduction in your favor.

KEEP TRACK OF YOUR MILEAGE!
 

drexl_s

Well-Known Member
If you withheld more taxes this year via W2 than were paid last year to the IRS, you are ok at year end. If however, W2 taxes are less than last year, and you end up owing, you will pay fees; hence, pay some estimated taxes and be in the clear; if you think you are close.
 

zandor

Active Member
If you don't pay estimated taxes and owe at the end of the year you'll probably have to pay a penalty. Another fun bit about estimated tax payments is you have to fill out a bunch of extra forms or punch a punch of extra stuff into TurboTax, etc. for uneven payments. You'll need all your pay stubs from your real job and all your Uber pay reports to do this.

Personally I would work through the numbers each quarter, try to figure out how much you'll owe, and pay a little less than that. If you don't put in the time to do the math you'll probably either end up paying a penalty or getting a refund. I prefer to owe than get a refund, but I don't want to owe a lot. Ideally I'd like to owe a couple hundred bucks. No reason to let the government collect interest on my money (they don't pay interest if you get a refund), and owing is safer. Just ask the guy I used to work with who got his $7k refund stolen. He got it back eventually, but it takes months and a lot of time and phone calls if someone fraudulently files a return for you and snags your refund.
 

Louisvilleuberguy

Active Member
I've owned multiple retail income tax offices in recent years and have done thousands of small business returns. No I would not worry this first year about paying estimated taxes and doubt you will have to ever. Without knowing your personal situation and it's different for each person there is no way to tell what Uber will do for your taxes. But an educated guess is you will more than likely end up with a business loss at year end. With uber rates being so low making a profit as far as taxes go will not be easy and even if you do it will not be a large amount.

The key is to keep good records so either you or your tax person can properly prepare your taxes and if your ever chosen for a random audit you will be covered and not really mess you up.
 
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