UberX Driving Experience and the Tax & Cost benefit of driving UBER

N0tU8er

New Member
I am posting my 1 week of UberX Driving Experience and the cost benefit of driving UBER- You make your decision

1.Uber Gross Income according to payout Statement (B)(After subtracting 20% commission for
Uber)=$1.81/mile
2. Taxes in CA (LA County) =10%
3. Uber Net Income after taxes (subtract 10% state tax+subtract 12% Federal tax )=$1.81/mile -$0.40=$1.41/mile
4. IRS rate/Mile deduction as Independent Contractor (B) =$0.54/mile
5. Actual money pocketed by UBER driver based on real collected data=$1.41-$0.54 =$.87/mile

Conclusion: $0.87/mile translate to about $0.20/minute driving in LA traffic = $94.60/day net earning based on 8 hours of driving =$11.83/hour

Note: Chances are your return trip may not have any riders back to your home base ,so you are basically making half of 11.83/hours =$5.92/hour
Note: LA County passed a ordinance on minimum wage of $15.00/hour recently.
 

Older Chauffeur

Well-Known Member
I am posting my 1 week of UberX Driving Experience and the cost benefit of driving UBER- You make your decision

1.Uber Gross Income according to payout Statement (B)(After subtracting 20% commission for
Uber)=$1.81/mile
2. Taxes in CA (LA County) =10%
3. Uber Net Income after taxes (subtract 10% state tax+subtract 12% Federal tax )=$1.81/mile -$0.40=$1.41/mile
4. IRS rate/Mile deduction as Independent Contractor (B) =$0.54/mile
5. Actual money pocketed by UBER driver based on real collected data=$1.41-$0.54 =$.87/mile

Conclusion: $0.87/mile translate to about $0.20/minute driving in LA traffic = $94.60/day net earning based on 8 hours of driving =$11.83/hour

Note: Chances are your return trip may not have any riders back to your home base ,so you are basically making half of 11.83/hours =$5.92/hour
Note: LA County passed a ordinance on minimum wage of $15.00/hour recently.

I won't argue that you're making more than you think you are, but from a tax perspective, you deduct the $.54 per mile and other expenses such cell phone charges from your gross earnings paid into your bank account by Uber. Most drivers report very little taxable income from Uber. You are including those empty return miles as deductible, right?
The "earnings" from Uber are actually being paid, in a sense, by the depreciation of and equity in your vehicle.
As to your statement about LA County raising the minimum wage to $15 per hour, it is incremental. Starting today it goes up by $.50 from $10 to $10.50 per hour. It is scheduled to get to $15.00 per hour in 2020.
 
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