Taxes-New drivers...record ALL your miles. 187 Miles Driven for $100 earned(deposited) is $0 profit

Part Time AZ

Active Member
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Most drivers don't know that for ever $1 you earn(deposit) that break even is 1.87 miles.

Some drivers like to set a goal of $100,$150 or $200 a day.

Lyft will show your total $ billed to the rider. That will show on your 1099 sent to you at the end of the year. Base Lyft fees are subtracted(25%) and that is your gross receipts. Miles driven x .535 can be deducted From receipts to create your bottom line(profit/loss). Please contact the IRS or a Tax preparer to confirm.

Here is a sample if you work just 1 day,Earn $133.34, drive 186.92 miles and then prepare your taxes. If you drive more than 187 miles(set your trip odometer), your business is showing a loss. Less than 187 becomes profit.

Phoenix pay rates are low compared to many other cities. Many drivers try to reach the 1:1.87 ratio and count on tips to make their profit....similar to a waitress. Hence the term "Working for the Tip".

You can also easily check your progress at any time by taking your money earned(pending deposit) and divide by .535. In this example:$100/.535 is 186.92 miles. If your trip odometer is below 187...you are on the right track.

Some drivers like to say $100 is good. $20 for gas is all I worry about. Think twice....be wise.
 

Nasshan79

Member
View attachment 158173 View attachment 158172 Most drivers don't know that for ever $1 you earn(deposit) that break even is 1.87 miles.

Some drivers like to set a goal of $100,$150 or $200 a day.

Lyft will show your total $ billed to the rider. That will show on your 1099 sent to you at the end of the year. Base Lyft fees are subtracted(25%) and that is your gross receipts. Miles driven x .535 can be deducted From receipts to create your bottom line(profit/loss). Please contact the IRS or a Tax preparer to confirm.

Here is a sample if you work just 1 day,Earn $133.34, drive 186.92 miles and then prepare your taxes. If you drive more than 187 miles(set your trip odometer), your business is showing a loss. Less than 187 becomes profit.

Phoenix pay rates are low compared to many other cities. Many drivers try to reach the 1:1.87 ratio and count on tips to make their profit....similar to a waitress. Hence the term "Working for the Tip".

You can also easily check your progress at any time by taking your money earned(pending deposit) and divide by .535. In this example:$100/.535 is 186.92 miles. If your trip odometer is below 187...you are on the right track.

Some drivers like to say $100 is good. $20 for gas is all I worry about. Think twice....be wise.

Another tip... if you do this for supplemental income and work far from home... you can set your app to destination mode on your way to work and from work. Log those miles. I never get rides during this time and get to write off 70 miles a day from this.
 

AP92

Well-Known Member
View attachment 158173 View attachment 158172 Most drivers don't know that for ever $1 you earn(deposit) that break even is 1.87 miles.

Some drivers like to set a goal of $100,$150 or $200 a day.

Lyft will show your total $ billed to the rider. That will show on your 1099 sent to you at the end of the year. Base Lyft fees are subtracted(25%) and that is your gross receipts. Miles driven x .535 can be deducted From receipts to create your bottom line(profit/loss). Please contact the IRS or a Tax preparer to confirm.

Here is a sample if you work just 1 day,Earn $133.34, drive 186.92 miles and then prepare your taxes. If you drive more than 187 miles(set your trip odometer), your business is showing a loss. Less than 187 becomes profit.

Phoenix pay rates are low compared to many other cities. Many drivers try to reach the 1:1.87 ratio and count on tips to make their profit....similar to a waitress. Hence the term "Working for the Tip".

You can also easily check your progress at any time by taking your money earned(pending deposit) and divide by .535. In this example:$100/.535 is 186.92 miles. If your trip odometer is below 187...you are on the right track.

Some drivers like to say $100 is good. $20 for gas is all I worry about. Think twice....be wise.
Yet another self-driving Uber car trying to get drivers off the road. :wink:
 

Part Time AZ

Active Member
Not at all. Uber/Lyft don't teach you how to run your business. My opinion is the rates for X/Base Lyft are not sustainable for full time drivers to make it. Similar to the Costco semi drivers. This is what to expect when driving....this is a 1 hour sample:

2 rides, 2.5 miles to get each pax(5 total) and 7.5 mile ride each(15 total)

And this chart doesn't deduct for the miles spent driving to hotspots and only $.40 to pickup your pax(they call it "Base Fare").

What I feel is deceiving is they have "guarantee hours". This typical scenario is giving 2 rides. Each pax is charged about $10. So you have reached your $20 guarantee without their subsidy. But you actually only realize $2.31. Am I wrong?

You really need higher rates. .09/min and .95/mile don't even get you to $10/hour like the minimum wage is now in AZ....
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as the chart shows.
 

Jdemonto

Well-Known Member
Honestly this is probably the only thing I agree with you on! Base driving is a part time gig at best. I have a couple of drivers in my group that work rideshare/food delivery and they are doing very well. They must be a 1/10 of a percent
 

Kaliman

Well-Known Member
Honestly this is probably the only thing I agree with you on! Base driving is a part time gig at best. I have a couple of drivers in my group that work rideshare/food delivery and they are doing very well. They must be a 1/10 of a percent
Yep! The profit is in Surge or Primetime. The problem is nowadays Uber is keeping a huge chunk of what used to be Surge $$. Income is still very decent for some drivers while profit is small or none.
 
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