Tax Season is upon us! Ask me Whatever!

UberTaxPro

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file your 18 &/Or 19 return for stimulus check, not 1/4ly’s
Not many ride-share drivers I know file quarterly. Most have very low net income from ride-share
If you use the mileage method you generally don’t need gas receipts
 
I will be purchasing a used vehicle for U/L in the near future. May I use the sales tax that will have to pay for the vehicle to lower the amount of tax that I have to remit back to the government? I am in Canada by the way. Not sure if it will be the same as in the USA.
 

MajorBummer

Well-Known Member
Hi mate


Hi mate I am a New driver driver full Time (about 50h/week) in Brisbane.

I am renting my car to a re tal company who works with uber called SPLEND.

I am paying 269 dollars a week for my car (registration insurance services inclused) and about 200 of fuel.
Im making about 1500$ per week.

I put this car on 100% uber use.

Could you help me regarding the payable/déductible taxes for my case ? Thank you
for a $1060 a month it better be a cadillac
 

Diamondraider

Well-Known Member
I use T/T Deluxe Version on CD from Costco, $39.95. Probably similarly priced at Sam’s Club. It has everything you need for reporting self employment income and expenses. You can share, as it is good for filing five returns. I split with a friend, so it only costs me $20. :thumbup: No charge for e-filing federal returns, but $19.95 for state returns. You don’t need the Home and Business or Premium Version T/T tries to upgrade you to.
I use freetaxusa.com.
 

John McYeet

Active Member
I earned about 20,000 between lyft and Uber in 2019. To pay my social security tax do I need to contact the IRS directly? And is it possibly to put the amount I owe for that on a payment plan? Thank you.
 

Launchpad McQuack

Well-Known Member
I earned about 20,000 between lyft and Uber in 2019. To pay my social security tax do I need to contact the IRS directly? And is it possibly to put the amount I owe for that on a payment plan? Thank you.
Your "social security tax" is part of your self employment tax when you file your income tax return (Form 1040) for 2019. You have to file Schedule C and Schedule SE with your 1040 for your Uber/Lyft income (and expenses). If you will owe over a certain amount, you are expected to make tax payments every quarter throughout the year instead of waiting until you file your income tax return to pay the tax. For example, 1st quarter taxes for 2020 were due on April 15 (the same date that income tax returns for 2019 were due). 2nd quarter taxes are due on June 15.

As for payment plans, I don't know anything about that and defer to the master.
 

Older Chauffeur

Well-Known Member
For example, 1st quarter taxes for 2020 were due on April 15 (the same date that income tax returns for 2019 were due). 2nd quarter taxes are due on June 15.
Due to Covid 19, the normal taxes due date was extend from April 15 to July 15. The same is true for the estimated quarterly payment for the first quarter ending March 31. The second quarter ends June 30, so the payment is normally July 15. I haven’t heard or read of a further extension of that date.

As @Launchpad McQuack indicated, your SECA is figured on Schedule SE. It will be approximately 15.3% of your net profit, after deducting mileage, cell phone and other expenses, provided that net profit is at least $400. Your SECA then becomes part of your taxes owed to the IRS. I’ve never applied for a payment plan, but I have read that it can be done. You must file no later than July 15, even if you can’t pay with your return.

The basic requirements for estimated quarterly payments are generally if you have not paid in at least 90% of your total tax due, or an amount equal to at least 100% of the previous year’s tax due, the IRS will want them for the next year. If you had a regular job and paid FICA via withholding, that amount counts towards the requirements.


Good luck.
 

John McYeet

Active Member
Due to Covid 19, the normal taxes due date was extend from April 15 to July 15. The same is true for the estimated quarterly payment for the first quarter ending March 31. The second quarter ends June 30, so the payment is normally July 15. I haven’t heard or read of a further extension of that date.

As @Launchpad McQuack indicated, your SECA is figured on Schedule SE. It will be approximately 15.3% of your net profit, after deducting mileage, cell phone and other expenses, provided that net profit is at least $400. Your SECA then becomes part of your taxes owed to the IRS. I’ve never applied for a payment plan, but I have read that it can be done. You must file no later than July 15, even if you can’t pay with your return.

The basic requirements for estimated quarterly payments are generally if you have not paid in at least 90% of your total tax due, or an amount equal to at least 100% of the previous year’s tax due, the IRS will want them for the next year. If you had a regular job and paid FICA via withholding, that amount counts towards the requirements.


Good luck.
So you can deduct expenses before you pay your social Security tax? Because I made $20,000 last year in 2019 but that’s before expenses are factored in. I’ll only have to pay 15.3% of however much I made AFTER expenses are deducted?
 

Asificarewhatyoudontthink

Well-Known Member
I am a long-time member here and after last years extensive rideshare tax AMA I think it’s time to start anew. I'll do my best to help with your questions this year. Please be patient as I'll be working with one of the larger remote tax services this year and they are keeping me very busy. Thanks also to everyone else that pitches in with great answers!

If you need help preparing your taxes for 2019 please contact me here: UberTaxPro.com
Is it normal to see -7654.00 as adjusted gross income
Asking for a friend.
 

Older Chauffeur

Well-Known Member
So you can deduct expenses before you pay your social Security tax? Because I made $20,000 last year in 2019 but that’s before expenses are factored in. I’ll only have to pay 15.3% of however much I made AFTER expenses are deducted?
Absolutely. You’re going to deduct Uber/Lyft commissions and fees from the gross they show you earned. (That result should match your bank deposits.) Then deduct your mileage and other operating expenses to get your net profit. If you’re using a tax prep program such as TurboTax it should walk you through it, step by step.
 

Launchpad McQuack

Well-Known Member
The second quarter ends June 30, so the payment is normally July 15.
The IRS does their quarters weird.

Q1 = January, February, March (payment due April 15)
Q2 = April, May (payment due June 15)
Q3 = June, July, August (payment due September 15)
Q4 = September, October, November, December (payment due either January 15 or with your tax return if filed by February 1)

I wasn't aware that any of the dates had been pushed back. I wish I knew that before I made my April 15 payment. My budget would be much less strained.
 

Older Chauffeur

Well-Known Member
The IRS does their quarters weird.

Q1 = January, February, March (payment due April 15)
Q2 = April, May (payment due June 15)
Q3 = June, July, August (payment due September 15)
Q4 = September, October, November, December (payment due either January 15 or with your tax return if filed by February 1)

I wasn't aware that any of the dates had been pushed back. I wish I knew that before I made my April 15 payment. My budget would be much less strained.
Sorry, I misread the hit I got when I Googled it. They apparently extended the 2nd quarterly due date. Does seem weird to pay before you have completed the quarterly earnings.I should have gone to the IRS site:
 
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