Tax Time! Ask me anything about Ride-share Taxes

SEAL Team 5

Well-Known Member
I made like 15000 on uber

And my uber mileage is around 40000 miles.
Friggin YIKES!!! Making $.375/mile is not only working for free but not even being properly compensated for vehicle use. Screw Uber for that extra income and try picking up more hours from your $200k job.
 

Amsoil Uber Connect

Well-Known Member
Oh Boy, there was a joke going around in the IRS Patriot community about a new "Simplified" 1040 form consisting of 2 lines. It went like this.

1. "How Much did you make ?" _______.__

2. Send it in. _______.__

Sign here > ___________________

I guess we got it this year. Lmao,....:coolio:

Anyway, my question is. What line on the "New" 1040 form do you put the amount from Schedule C ?
In years past it was line 12. Business Income or Loss.

This year line 12a says Child tax credit._____ b. any amount from Schedule 3. WTH ? schedule 3 same as schedule C ? No Schedule 3 = Nonrefundable credits.
 
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Launchpad McQuack

Well-Known Member
Anyway, my question is. What line on the "New" 1040 form do you put the amount from Schedule C ?
In years past it was line 12. Business Income or Loss.
Now it goes on Line 12 of Schedule 1. Then the sum on Line 22 of Schedule 1 goes in the space to the left of Line 6 on the base 1040 form and gets added to everything else. In my opinion, they didn't simplify anything. They just broke it up into more forms. I guess if you only have W2 wages, then it is simpler because there are less lines on the base 1040 form that you have to skip.
 

got a p

Well-Known Member
when lenders look at your previous two years tax returns, when 1099, they look at net income to determine what mortgage amount you qualify for.

from what i've learned lenders will re-adjust your income level back up for "depreciation".

ie:if your business gross is $100k - $10 travel expenses - $ 40k depreciation you would pay tax on $50k.

however your mortgage lender would not consider your income to be $50k they would consider it to be $90k. thus qualifying for a higher loan.


-my question is, and i've called a lender about this who hasn't gotten back to me, does the $.54/per mile deduction count as "depreciation" when it comes to what lenders see as your income.

ie: if you gross $100k on uber - $10k random expenses -$40k mileage (at .54/mile), and pay tax for $50k, do the lenders consider your income $90k or $50k?

also - does the irs consider $40k deduction @ .54/mile "depreciation", even if the car only cost $5k? or in other words is mileage considered depreciation to them. i mean how can a $5k car depreciate by $40k, right?

this is kind of two (maybe even 3) questions at once: the lenders question, and the irs definition of mileage as depreciation or not. do you know the answers? i'd greatly appreciate it.
 
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Launchpad McQuack

Well-Known Member
What I have been told is that the standard mileage deduction includes a depreciation component. Standard mileage is basically gas, maintenance, and depreciation all wrapped up in one number. UberTaxPro has been working with me on my tax returns this week, and the report that he gave me includes a breakdown of car expenses. It shows the 54.5¢/mile for the standard deduction allocated as 25¢/mile for depreciation and 29.5¢/mile for operational expenses (gas, maintenance, etc.). I don't know if that breakdown is standard across the board or if it depends on the vehicle.
 

got a p

Well-Known Member
thanks for the quick response.

do you know if lenders would add back $.25/mile for depreciation when calculating your income to determine loan amount?
 

BostonTaxiDriver

Well-Known Member
I have severe tax issues, with many years not only unpaid, but unfilled as well.

Don't have many receipts for deductions, only this year's gas receipts and some from last year scattered about.
so I'm likely in bad spot.

Is an EA (entitled agent), a CPA or a tax storey my best solution?

Or just visit my state tax office then the IRS office and discuss with them in person for an offer in compromise? I understand that an offer in compromise is not really that easy to get offered, despite what those preying tax solution radio ads claim. I don't trust them and hear bad things about using them.

I'll consider using your services but I think my situation is too severe and too complicated at this point.

Thanks.
 

Amsoil Uber Connect

Well-Known Member
Or just visit my state tax office then the IRS office and discuss with them in person for an offer in compromise? I understand that an offer in compromise is not really that easy to get offered, despite what those preying tax solution radio ads claim. I don't trust them and hear bad things about using them.

I'll consider using your services but I think my situation is too severe and too complicated at this point.

Thanks.
 

Older Chauffeur

Well-Known Member
I hope @UberTaxPro can get you pointed in the right direction. I don’t know whether he feels “entitled” (he doesn’t sound that way :p) but he is an Enrolled Agent. Good luck to you.
 

Amsoil Uber Connect

Well-Known Member
I should probably pm you on this but I'll put my story out here. First of all I was involved with the anti tax / Patroit community in the mid 90's and learned a ton that your EA / CPA's should be telling everyone. Accept they would go out of business, so they play the game along with the IRS. I'll give them a break, perhaps they really don't know ?

I had unfilied returns as well, but being a W-2 person, at the time, this game was not escapable. Still owe them about 10K, but with the help of one of tax companies I have been put into an "Uncollectable" status. This is what you want.

Back then, one of the many things I learned about was "Assessment Proceedure" I think it's IRC section 6201 ? ( Note; see Regulations only ), Did you know that the tax payer "Self assess" themselves ? Yes it is voluntary but your compliance is Mandatory ? Ya repeat that several times. N E way, the service has 10 years to collect from the date at which the assessment was created. That may not be April 15th like it is for most taxpayers. In my case the last two years of assessments expires next august. And when that clock runs out, Poof the last remaining $ into cyber space and I'm free and clear. I've already put this into practice and have had thousands disappear. This is where knowledge is power, so please set aside that jelly emotion. Thank you. Next I will be filing an extension for the rest of it and should get a small return instead of the service keeping any refund that may be due.

The problem for me was the 17 thousand to pay this tax company to take care of this, my justification was, better to pay them than the Service. In which I had to file past returns as well and be a good sheep from then on out. This company did me right and all is well.

One thing to remember. The service only has records that employers others send, W-2 people, or 1099's in the case of IC's, that are required to be sent to them. Mortgage interest. They also have, well, can get, your banking records and credit cards balances to and anything else tide to your SSN.

Also if your not getting letters asking you to explain why you have no filing requirement, you may not have to why worry. Now if you moved and did not update the change of address to the service, then any letters are going to the last known address of record. And then one day you may find your bank account completely drained through there levy procedure. And by the time the banks letter gets to you it is to late.

ps, I'm not a tax pro nor am I suggesting taking on any advice from me. This is just my story and yours maybe different.
 
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TKDmom

New 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.
 

FLKeys

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.
Keep detailed records of earnings and proper mileage logs. Record everything in a spreadsheet and you will know exactly where you stand after very delivery. Use this to determine how much to pay quarterly.

Now WHY would you want to loan the IRS your money? Figure your taxes so that you get a minimal return or pay a minimal amount at the end of the year. Refunds are essentially interest free loans being paid back by the IRS. Open another bank account and deposit your extra taxes in there if you want to have a virtual tax return, don't give it to the IRS.
 

TKDmom

New Member
Keep detailed records of earnings and proper mileage logs. Record everything in a spreadsheet and you will know exactly where you stand after very delivery. Use this to determine how much to pay quarterly.

Now WHY would you want to loan the IRS your money? Figure your taxes so that you get a minimal return or pay a minimal amount at the end of the year. Refunds are essentially interest free loans being paid back by the IRS. Open another bank account and deposit your extra taxes in there if you want to have a virtual tax return, don't give it to the IRS.
Thanks for the response! I have no idea why my husband likes to do taxes that way....one of the many battles I decide to let slide. I have the Inuit Quick Book app that has been keeping track of my Uber earnings and mileage. Do you suggest I just put the money I should owe taxes away and pay it annually?
 

FLKeys

Well-Known Member
Thanks for the response! I have no idea why my husband likes to do taxes that way....one of the many battles I decide to let slide. I have the Inuit Quick Book app that has been keeping track of my Uber earnings and mileage. Do you suggest I just put the money I should owe taxes away and pay it annually?
If you are having enough come out from your w-2 job you won't owe anything and if you put the money in an online savings account at least you made a little interest. If you do end up owing, you have the money saved to pay it. Interest an penalties only start if you owe over $1000 with some other factors involved. You know your annualy returns, I don't, so base your decision on that.

From what I have been reading from other drivers Uber Eats is very hard to make a taxable profit, meaning your income will be negative after deducting standard mileage rates of 58¢ per mile. Keep track of your income and divide it by the total miles you tracked. If your average is below 58¢ per mile you will not owe any taxes. If it is over 58¢ per mile the amount over is basically your taxable income. Keep in mind you can deduct delivery bag expenses and other legitimate expenses so this would also lower your taxable income.
 

UberTaxPro

Well-Known Member
Sponsor
  • Thread Starter Thread Starter
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I have severe tax issues, with many years not only unpaid, but unfilled as well.

Don't have many receipts for deductions, only this year's gas receipts and some from last year scattered about.
so I'm likely in bad spot.

Is an EA (entitled agent), a CPA or a tax storey my best solution?

Or just visit my state tax office then the IRS office and discuss with them in person for an offer in compromise? I understand that an offer in compromise is not really that easy to get offered, despite what those preying tax solution radio ads claim. I don't trust them and hear bad things about using them.

I'll consider using your services but I think my situation is too severe and too complicated at this point.

Thanks.
I'm a bit biased but here's my take on your choices:
CPA - depends on which one you choose, many are excellent at tax resolution but many don't want anything to do with it.
Tax Attorney - Good choice, especially if you need to take the IRS to federal court or if you're facing criminal charges. Expensive.
EA - Best cost effective choice if you want your matter resolved at the IRS administration level. All EA's specialize in tax and we have full representation rights before the IRS. We're also licensed federally which means we not limited to working only in a particular state or two like the other two choices.
 

dens

Active Member
How do we deal with reimbursed toll fees?. Should we add them to businesses expenses or don't report them at all?
From what i understand there should be no loss or gain..
 
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