• UberPeople.NET - Independent community of rideshare drivers. It's FREE to be a person and enjoy all the benefits of membership. JOIN US! CLICK HERE

Tax Time! Ask me anything about Ride-share Taxes

FLKeys

Well-Known Member
Trip.log isnot a lot of money$45 per year and a lot easier.
I'm frugal and sitting in my car gives me ample time to keep manual records. Free pen from a local business and a $4 Steno pad that will last over a year. The biggest factor to me is the estimated $1,160 in lost mileage because the app was off by around 5%. 5% of 40,000 miles ads up quick.

Like every aspect of rideshare do what works for you, we all have our own preferences. What is right for me is not right for everyone else.
 

..Derek..

Active Member
I am still trying to figure out my tax rate so I can estimate for this year.
Post automatically merged:

Is this a tax rate
married filing jointly?
we made a lil over 113,000 jointly
22%$78,951 to $168,400$9,086 plus 22% of the amount over $78,950
 

..Derek..

Active Member
thank you... I will study now.
Post automatically merged:

which "thresholds" are correct?
I see 4 different factors...I am having trouble finding the correct numerical factors......
example ----
The way you define which “tax bracket” you belong in is where the upper level of your income hits. So, let’s say you are a single filer making $85,000. That means that you are in the 24% tax bracket for federal taxes. But as we noted, that doesn’t mean the whole $85,000 will be taxed at 24%. Instead it will break down like this.

  • $9,525 of your income will be taxed at 10%
  • $29,175 will be taxed at 12%
  • $43,800 will be taxed at 22%
  • $2,500 will be taxed at 24%
Are these numbers standard multipliers?
 
Last edited:

UberLAguy

Active Member
If I drive full time, every miles should be a busisness miles. I am going to have two cars, one I can claim as personal, one for business. So I only need to record the mileage on the first of the year and the last day of the year on the "business car".

Is that rational reasoning ?
 

islanddriver

Well-Known Member
The money spent on trip log is also a tax deduction. I haven't found that it's off 5% like you said. Having said that to each his own . Just offering another way.
 

UberTaxPro

Well-Known Member
Past Sponsor
  • Thread Starter Thread Starter
  • #167
If I drive full time, every miles should be a busisness miles. I am going to have two cars, one I can claim as personal, one for business. So I only need to record the mileage on the first of the year and the last day of the year on the "business car".

Is that rational reasoning ?
Regardless of the amount of vehicles you have you need odometer readings at beginning and end of year for any vehicle used in business. Be careful with the 100% business mileage even with 2 cars. It's rationale even with 2 cars that at some point during the year you'll be using the business car for something personal.
Post automatically merged:

thank you... I will study now.
Post automatically merged:

which "thresholds" are correct?
I see 4 different factors...I am having trouble finding the correct numerical factors......
example ----
The way you define which “tax bracket” you belong in is where the upper level of your income hits. So, let’s say you are a single filer making $85,000. That means that you are in the 24% tax bracket for federal taxes. But as we noted, that doesn’t mean the whole $85,000 will be taxed at 24%. Instead it will break down like this.

  • $9,525 of your income will be taxed at 10%
  • $29,175 will be taxed at 12%
  • $43,800 will be taxed at 22%
  • $2,500 will be taxed at 24%
Are these numbers standard multipliers?
Not sure what you mean by "standard multipliers". Those numbers are current tax law.
 
Last edited:

UberTaxPro

Well-Known Member
Past Sponsor
  • Thread Starter Thread Starter
  • #169
You're the pro, but this implies you don't need a trip log. Maybe drop the word "only"?
Wow! I never thought the OP or anyone would think I was inferring they didn't need a log! The OP's question was only about odometer mileage recording so my my answer was only pertaining to the odometer reading requirement. Logs recording your business activity are needed. You don't need to record your odometer reading more than twice a year....beginning of the year and end of year. Thanks for pointing that out and I'll take out the "only"
 

..Derek..

Active Member
I see 2 different sets of numbers in....different websites...I assume the 2019 numbers are an updated threshold?
Post automatically merged:

Its confusing...how do they find these numbers? Are the numbers always the same? Do the numbers change according to each persons income?
Also this is an estimate...sooo I am doing a filing separate as an estimate ?
 
Last edited:

OLDSCHOOLPARAD

Active Member
I’m paying $80 for 2 phone lines. One I want to use exclusively for Rideshare, the other personal. They both have the same features. However, on the main line(non business) line it states the price is $60, while the other one says $20.

My question is, should I deduct $40 since together they’re $80? $20 since that’s the extra line cost? Or can I switch my $60 line to business and deduct that?

P.S. I’m on MetroPCS if that helps any.
 

FLKeys

Well-Known Member
I’m paying $80 for 2 phone lines. One I want to use exclusively for Rideshare, the other personal. They both have the same features. However, on the main line(non business) line it states the price is $60, while the other one says $20.

My question is, should I deduct $40 since together they’re $80? $20 since that’s the extra line cost? Or can I switch my $60 line to business and deduct that?

P.S. I’m on MetroPCS if that helps any.
In this case I would only claim the $20.00. Not familiar with your plan, but if there are any data overage charges I would also claim them. Switching phone numbers in my opinion so the business line is primary is a gray area that you could probably get away with. Will be interesting to see what @UberTaxPro has to say.
 

UberTaxPro

Well-Known Member
Past Sponsor
  • Thread Starter Thread Starter
  • #173
In this case I would only claim the $20.00. Not familiar with your plan, but if there are any data overage charges I would also claim them. Switching phone numbers in my opinion so the business line is primary is a gray area that you could probably get away with. Will be interesting to see what @UberTaxPro has to say.
Are the lines dependent on each other? In other words could you drop the $60 phone and keep the $20 phone?
Post automatically merged:

I’m paying $80 for 2 phone lines. One I want to use exclusively for Rideshare, the other personal. They both have the same features. However, on the main line(non business) line it states the price is $60, while the other one says $20.

My question is, should I deduct $40 since together they’re $80? $20 since that’s the extra line cost? Or can I switch my $60 line to business and deduct that?

P.S. I’m on MetroPCS if that helps any.
Are the lines dependent on each other? In other words could you drop the $60 phone and keep the $20 phone?
 

UberTaxPro

Well-Known Member
Past Sponsor
  • Thread Starter Thread Starter
  • #175
I haven't worked for several years so I also haven't paid any taxes and just started ubereats in April. Do I still need to pay quarterly estimated taxes? Which software is better turbo tax or h&r block?
Whether or not you have to pay estimated taxes depends on multiple factors like how much did you make, how you're filing married or single etc.., if you or your wife have a W2 job, how much tax you've already paid etc....
I've never seen H&R software and haven't used turbo tax for years now but I did work for them one tax season. What many miss when starting this is that you're not working a W2 job and are in the eyes of the IRS operating your own business. You'll be filing a business tax return most likely on a Schedule C come tax time. I would suggest you consult with a tax pro or research on your own to be sure you're keeping the records you'll need at tax time. The only way I can tell if you need to pay estimated taxes is to review your bookkeeping. I'll need your total business income and your total business miles from your mileage log along with the items mentioned above to determine if you need to pay estimated taxes. Do you have those records for the quarter?
 

Frank C

Member
I'm sorry if this has already been asked, but I would prefer to not read this entire thread. Let's say I drove 10,000 miles and earned $6,200.00 driving this year. Is the full dollar amount of the write off (example: 10,000 miles @ $0.545/mile = $5,450.00) deducted from the money earned while driving? It would appear of this were the case than I would show very little earnings from driving, and hence pay taxes on a relatively small portion of my earnings. Is this correct?
 

Older Chauffeur

Well-Known Member
I'm sorry if this has already been asked, but I would prefer to not read this entire thread. Let's say I drove 10,000 miles and earned $6,200.00 driving this year. Is the full dollar amount of the write off (example: 10,000 miles @ $0.545/mile = $5,450.00) deducted from the money earned while driving? It would appear of this were the case than I would show very little earnings from driving, and hence pay taxes on a relatively small portion of my earnings. Is this correct?
You have the right idea. Be sure to deduct the U/L fees from the gross amount they show. The result should match the total deposits to your bank account. Also, if your net profit is $400 or more, you will owe self employment taxes for social security and Medicare.

Disclaimer: I’m not a tax professional.
 

Frank C

Member
You have the right idea. Be sure to deduct the U/L fees from the gross amount they show. The result should match the total deposits to your bank account. Also, if your net profit is $400 or more, you will owe self employment taxes for social security and Medicare.

Disclaimer: I’m not a tax professional.
Thanks for the input! I’m guessing the year end statement will only include my deposits, correct? So I write off mileage at the current rate against the deposits, and that’s all? I don’t pay for my cell phone (my other job provides my phone). What else can I reasonably write off? Thanks!
 
Top