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Tax Time! Ask me anything about Ride-share Taxes

NotanEmployee

Well-Known Member
this is true for destination travel. from point A to point B. but they allow route miles which is what uber is. a route would be from the moment you turn the app on until you turn it off. for me the start and end address is my house.
Ok, thank goodness! Some guy on this forum was telling me that the IRS will not accept just putting start to finish route...but that I had to do a line item for every single drive! I did not want to have to track it that detailed!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Thanks!
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id go nuts if i had to have addresses, time, odometer for each ride start and end...plus miles in between rides are deductible. sometimes i start or end at a beach or hiking path....so many non address places. even uber lists the address as “US”

i researched this as well. also it was found in a court case that ubers mileage tracking is admissible. any tracking you do on your own will back that up and vice versa. i havent had a tax year yet to compare the uber records to my own though.
 

UberTaxPro

Well-Known Member
Past Sponsor
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  • #203
Ok, thank goodness! Some guy on this forum was telling me that the IRS will not accept just putting start to finish route...but that I had to do a line item for every single drive! I did not want to have to track it that detailed!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Thanks!
id go nuts if i had to have addresses, time, odometer for each ride start and end...plus miles in between rides are deductible. sometimes i start or end at a beach or hiking path....so many non address places. even uber lists the address as “US”

i researched this as well. also it was found in a court case that ubers mileage tracking is admissible. any tracking you do on your own will back that up and vice versa. i havent had a tax year yet to compare the uber records to my own though.
[/QUOTE]
You should still keep your own log because you might have more business miles than Uber tracks. It is true that that the IRS regulations require you to keep your own log with business destinations marked. You might ultimately be allowed your deductions with the court case on your side but it won't be without effort. First the IRS will request your log and will disallow your deductions without the log. Next you'll have to appeal that ruling with the office of appeals. If that doesn't work you'll have to go to tax court yourself. Overall it's much easier and less expensive to keep a log.
 

FLKeys

Well-Known Member
Someone told me that when tracking miles, I cannot simply just track the amount from when I started while on the clock to when I finished...but for each destination, I have to have the start & stop address...in other words, my daily log of miles would be 12 lines if I did 12 trips instead of just (1) line on the excel spreadsheet.

Is this true? If so...ughh!!
I track every leg of my driving. Start to first pick-up,Pick-up to drop off, drop off to next pick-up, etc. I record mileage, address, and description of place (residence, name of business, etc). Sound like a lot, but get into the habit and it really is not. I can make a written entry in my notebook in the time the PAX is getting in and or out. I found Steno Pads work great for me. My entries look like this.
1566573959895.png


Then I enter them into a spread sheet with more detail:

1566574790071.png


And that becomes my mileage log for the IRS
 

NotanEmployee

Well-Known Member
You should still keep your own log because you might have more business miles than Uber tracks. It is true that that the IRS regulations require you to keep your own log with business destinations marked. You might ultimately be allowed your deductions with the court case on your side but it won't be without effort. First the IRS will request your log and will disallow your deductions without the log. Next you'll have to appeal that ruling with the office of appeals. If that doesn't work you'll have to go to tax court yourself. Overall it's much easier and less expensive to keep a log.
yes i keep a log of start and end odometer as well as gps route via stride tax app. im covered 3 ways. 👍
 

michael7227

Well-Known Member
Hi UberTaxPro,

I'm late filing and have a friend doing my taxes. He did them but did not file them. I have the PDF. He has seemed to drop the ball at this point and I am running against clocks.

Should I just print them out and send them in with his preparer signature already on it? (compensate him when he decides to call me back)

What would you do here?
 

UberTaxPro

Well-Known Member
Past Sponsor
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Hi UberTaxPro,

I'm late filing and have a friend doing my taxes. He did them but did not file them. I have the PDF. He has seemed to drop the ball at this point and I am running against clocks.

Should I just print them out and send them in with his preparer signature already on it? (compensate him when he decides to call me back)

What would you do here?
How has he "dropped the ball"? Is he communicating with you? Have you asked him if the returns are ready to file? Do you owe money? Did you file an extension?
 

Amsoil Uber Connect

Well-Known Member
Your preparer signed them, so he did his part. So now you get to give up your 5th Amendment right and sign it and send it in asap. Because your late filing interest rate clock is still running. The IRS is still waiting for the Assessment that you are creating to match up with the records they already have on you. If you don't create one , they will do it for you.
 

michael7227

Well-Known Member
How has he "dropped the ball"? Is he communicating with you? Have you asked him if the returns are ready to file? Do you owe money? Did you file an extension?
Communicating once a week with several requests from me to just file so I can pay you or vice versa. Is busy though with his real job and relatives in town. He finished a month ago and I'm just trying to pay and file or vice versa. No ext. I owe relatively small amounts. Returns are ready I looked them over a month ago.

I have texted emailed called and am clearly on the back burner.
 
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UberTaxPro

Well-Known Member
Past Sponsor
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Communicating once a week with several requests from me to just file so I can pay you or vice versa. Is busy though with his real job and relatives in town. He finished a month ago and I'm just trying to pay and file or vice versa. No ext. I owe relatively small amounts. Returns are ready I looked them over a month ago.

I have texted emailed called and am clearly on the back burner.
Why isn't he e-filing the return for you? Why are you able to print the return? Did he prepare them on your software?
 

Amsoil Uber Connect

Well-Known Member
Communicating once a week with several requests from me to just file so I can pay you or vice versa. Is busy though with his real job and relatives in town. He finished a month ago and I'm just trying to pay and file or vice versa. No ext. I owe relatively small amounts. Returns are ready I looked them over a month ago.

I have texted emailed called and am clearly on the back burner.
Is there any reason why you can't look up the address' and snail mail them in your self ?
 

Fuzzyelvis

Well-Known Member
I do have a question that was posed to me yesterday by a buddy of mine who’s daughter drives for “shiped”.

He accountant told her that she could deduct zero miles for her work delivering for them. To me that sounds absurd as she is considered an independent contractor.

He told her that, because she does not own the company she can’t claim the miles. She was issued a 1099.

Comment?
She needs a new accountant. Did she keep a log?
 

Fuzzyelvis

Well-Known Member
I just started with Uber Eats 2 weeks ago as a Second (well third) job. I use it for fun money. I want to pay quarterly, so it doesn't bite me in the ass later, but how do I do that with a full time job and a part time job that does take taxes out? I am also married. Do I just pay quarterly filing as single and only on Uber Eats income? Or do I need to pay quarterly for all my earnings, and with my husband? We always have more taken out of our taxes, so we receive a refund each year.
You probably have very little income after mileage. What you can do if you think you'll have a profit and owe taxes on it is adjust your withholding at your regular job. With two jobs that's often necessary anyway, because each job assumes it's the only one and may not take out enough if you're put into a higher tax bracket.

If you change the number of allowances on your W4 to a lower number more taxes will be withheld. You can even ask for more to be taken out as a % or dollar amount (been a while since I've done this so I don't remember which) even if you've put 0 allowances.

The W4 is the form you filled out when hired. You can always adjust it. Many employers have it online these days.
Link below shows what I mean and may help.

Post automatically merged:

Thanks for the feedback. I used the cash method in 2018 since that seems to be how both Lyft and Uber do their end of year accounting. I did not write this expense (2019 license) off in 2018, but I did write that year’s Business Tax license off, which was charged in January of 2018. Sounds like I’m SOL on this one since I paid the tab for 2019 in 2018 and use the cash method. Lesson learned. I’ll be sure to pay the fee for 2020 on January 1st, 2020.
You can still amend. I don't see why you can't write off both if you paid them both in the same year.
 
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Charbenji

New Member
Rideshare tax Ask Me Anything
I have a tax deduction question. I'm on a family members cell phone account in which I pay her $100 for my share. Can I deduct those $100 that I pay to her directly every month? I typically rideshare 2 nights out of the week, maybe 12-16 hours per week. I don't have access to her bill statements, I only have my payment transfers that I send her though Zelle on my bank app.
 

islanddriver

Well-Known Member
First you can only deduct the work part of the cell phone. After saying that your deduction would only be about 10% of the bill or $10.
 

UberTaxPro

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I have a tax deduction question. I'm on a family members cell phone account in which I pay her $100 for my share. Can I deduct those $100 that I pay to her directly every month? I typically rideshare 2 nights out of the week, maybe 12-16 hours per week. I don't have access to her bill statements, I only have my payment transfers that I send her though Zelle on my bank app.
Like @islanddriver stated above you have to prorate the business % of anything that is used for personal & business. If "her" is your wife ownership of the phone is not an issue. If "her" is not your wife you should have a written agreement with "her" as to what the zello receipts are for.
 

FLKeys

Well-Known Member
Since Lyft stooped sharing what the rider pays on a per ride basis and only plans on giving us a weekly summary what potential tax implications can this have?

Without this information how can I provide the IRS a detailed breakdown of my income if they were to ask for it? I know it most likely will never be asked for however the question needs to be asked.
 

Older Chauffeur

Well-Known Member
Since Lyft stooped sharing what the rider pays on a per ride basis and only plans on giving us a weekly summary what potential tax implications can this have?

Without this information how can I provide the IRS a detailed breakdown of my income if they were to ask for it? I know it most likely will never be asked for however the question needs to be asked.
If I understand your question correctly, I think it boils down to this- what Lyft/Uber charges the pax doesn’t affect the gross income they pay you, which is all you need to show on Schedule C. If you had a regular job assembling widgets, your W-2 wouldn’t show how much the company made selling the widgets you made, instead only what they paid you. The only breakdown on Schedule C is gross income minus expenses equals net profit.

Disclosure: I’m not a tax professional.
 
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