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Taxes

AnonymousUberer

Active Member
How does everyone handle their taxes as an Uber driver?

This is just a part time thing for me for extra spending cash. It will probably make up roughly 15-20% of my total earnings for that year when you add in my full time salary.

I've set aside 30% of all of my net earnings so far for taxes. I really hope this will turn out to be very high leaving me with a nice bonus after my taxes are done. Does anyone else set aside money each week for taxes?

Also as far as expenses to write off on taxes, what are you tracking? I've been tracking miles and all car maint. expenses including gas.

For miles, I've tracked every mile I wouldn't have driven if I wasn't doing Uber. This includes miles driven to busy areas, miles driving to pick up a passenger, miles driven on rides and miles driven home after logging out for the day. Will I be able to use all of these on my taxes or will I only be allowed to use miles driven during trips?

What does everyone do?
 

CommanderXL

Well-Known Member
Well, after running the numbers, my net income from this will be close to nil. And there's no tax on nothing. When it's all said and done, we really are just accessing the equity in our vehicles, so it's not really income.

Multiply the number of miles you've driven by 57.5¢ and then deduct that from what you've received from Uber. That'll give you an idea about how much of what you've "earned" is taxable. I think you'll find it's not much.
 

AnonymousUberer

Active Member
  • Thread Starter Thread Starter
  • #3
Good. That will basically put all of the money in my "taxes" account back in my pocket then. That'll be a real nice bonus check for myself early next year.
 

Chisox1125

Well-Known Member
Save your gas receipts. Any expenses you've incurred while doing Uber will make up for any taxes that you need to pay. If you've added the business aspect to your insurance that can be written off as well, including if you have a car payment any work you've had to do do your car as well. On a technical side if you haven't made more then 15000 in the year you almost really don't have to file. HnR block and the money grubbing tax companies will tell you other wise just to get your money.
 

FlDriver

Well-Known Member
I deduct all the miles I drive while online with Uber, not just the ones with riders in the car.

I don't keep track of gas and other expenses, since when you take the mileage deduction, you cannot deduct gas and other driving costs. Those are included in the mileage rate.

30% is way too much to set aside, though I guess better to have too much saved than not enough.
 

AnonymousUberer

Active Member
  • Thread Starter Thread Starter
  • #6
I figured 30% is too much. I'll be disappointed if I'm not putting a good amount of the back in my pocket once my taxes are done. That will also be a deciding factor on whether or not I will be an Uber driver in 2016.
 

Chisox1125

Well-Known Member
Where are you guys getting these goofy numbers? Your out of pocket costs will make up for what you have to pay back when taxes come.
 

PowerTrip

Active Member
Here is just one instance and it's not even a good one for Florida-
Check with a CPA or an account!

If You’re Self-Employed

Those of you (us?) who are self-employed (i.e., no one takes any money out of your income for taxes), and make a bulk of your living that way, you should definitely also be paying the Self-Employment Tax.

The Self-Employment Tax rate is currently at 15.3% and covers your portion of Social Security and Medicare. If you were employed by someone, they would take this out of your paychecks each month, but since you employ yourself, you’ve got to do it.

That means that instead of saving 25% of your earnings (adjusted of course for your personal tax bracket), you’d have to save 40%. That seems like an awful lot, and it is. And there is a chance that you won’t owe the government nearly that much, so you might be tempted just to spend the money and deal with what you do owe when the time comes, but you’re much, much better off having the money and not needing it, than needing it and not having it.

- See more at: http://thefinancegeek.com/budgeting/saving/saving-for-taxes-if-youre-non-w2-employed/#sthash.RB3PeTjz.dpuf

https://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Independent-Contractor-Self-Employed-or-Employee
 

Chisox1125

Well-Known Member
But there also not including what we do. You think a guy that delivers phone books is gonna take 40% of what he makes so he can cover is SSI and Medicare? Only threw that one out there cause I've done it before, never paid dime one of taxes. It's all about what money your trying to get back. Enough of the tax questions/posts till we hit January please.
 

UberXTampa

Well-Known Member
Good. That will basically put all of the money in my "taxes" account back in my pocket then. That'll be a real nice bonus check for myself early next year.
What seems like a good thing (not having to pay tax on uber income due to losses per IRS allowances) is a clear picture how bad Uber rates are.
 

rld0220

Active Member
As long as your household income is below $250k you should be OK. I have been self employed for about 15 years and usually don't end up paying anything extra in taxes.

It is worth it to hire a good tax accountant at least for the first couple years until you get a good idea of what all you can deduct.
 
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