# Minimum income for taxes.



## Metallifreak10 (Dec 7, 2016)

Just got a quick question.. just starting working for Uber and Lyft. Only have done 2 days so far for 6 hours and $124. My plan was to make just under $600 for the year so I don't have to pay taxes this year. When I was 18-20, for 3 years, I did a one week side job that paid me $550 cash.. each year I never reported the income. Now I've been reading that even if you make just $50, you have to report it.. I always thought $600 was the minimum.

I just want to be legal in reporting my income. Any information would be helpful..


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## Fuzzyelvis (Dec 7, 2014)

Metallifreak10 said:


> Just got a quick question.. just starting working for Uber and Lyft. Only have done 2 days so far for 6 hours and $124. My plan was to make just under $600 for the year so I don't have to pay taxes this year. When I was 18-20, for 3 years, I did a one week side job that paid me $550 cash.. each year I never reported the income. Now I've been reading that even if you make just $50, you have to report it.. I always thought $600 was the minimum.
> 
> I just want to be legal in reporting my income. Any information would be helpful..


How many miles did you drive to "make" $124?

Read the tax section here. Once you deduct mileage you'll have little profit at base rates. Just don't believe those who say to deduct meals...you can't.


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## Mars Troll Number 4 (Oct 30, 2015)

Metallifreak10 said:


> Just got a quick question.. just starting working for Uber and Lyft. Only have done 2 days so far for 6 hours and $124. My plan was to make just under $600 for the year so I don't have to pay taxes this year. When I was 18-20, for 3 years, I did a one week side job that paid me $550 cash.. each year I never reported the income. Now I've been reading that even if you make just $50, you have to report it.. I always thought $600 was the minimum.
> 
> I just want to be legal in reporting my income. Any information would be helpful..


Uber_* will report it*_... However you may not not owe taxes on it at all.

*You need a trip log day per day with Odometer readings for taxes.*

Multiple your total miles driven by .54 (this is the IRS rate for deducting vehicle use) and deduct this and your tolls... from what uber is paying you.

So if you drove 100 miles in 6 hours with $20 in tolls..

Your expenses for that time are $108 in mileage deductions 
$20 in deductible tolls.

$124 (total revenue)
-$108 (Mileage expenses)
-$20 (tolls)

Give you -$4 in profit, meaning you are operating at a loss according to the IRS, and will owe zero in taxes.

It will depend on how many miles you are driving to make how much money, to determine if you need to pay taxes at all.


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## Metallifreak10 (Dec 7, 2016)

Thank you guys, I will start to keep a mileage log. I drove about 130 miles if you include the 11 miles and 5 miles that I drove home after I logged off.


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## Mars Troll Number 4 (Oct 30, 2015)

Metallifreak10 said:


> Thank you guys, I will start to keep a mileage log. I drove about 130 miles if you include the 11 miles and 5 miles that I drove home after I logged off.


130 miles is $70 in deductions...

Bringing you down to $54 in actual income. This $54 is taxable.

In terms of what you can deduct...

If you get audited you need to be able to account for all your miles somehow...

If your log corresponds with the year before, the year after, and your car's actual odometer readings line up with your log.. the IRS will consider it as proper documentation and they won't challenge it.

How can the IRS prove that your log is not accurate?

The problem people get into is when the deduct more miles than the actually drive and the odometer readings don't correspond to an actual car.


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## GregCaires (Nov 27, 2015)

Uber suggests their fee is tax deductible? Anyone know if this is true?


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## SEAL Team 5 (Dec 19, 2015)

GregCaires said:


> Uber suggests their fee is tax deductible? Anyone know if this is true?


Of course it is. You will get a 1099 by next February that won't correspond with what was deposited into your account. The difference is all Uber, fuel card and payment fees. All tax deductible. You only pay taxes on the revenue you received. If you use the fuel card as a deduction then you can't use the standard IRS mileage deduction. You'll have to itemize cost. It's really very easy. Good luck.


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## michael7227 (Oct 29, 2016)

What if you rent through one of UBERs approved rental agencies. Are you still expected to calculate mileage or are you supposed to look to the rental pricing for deductions? 

Thanks in advance.


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## michael7227 (Oct 29, 2016)

scrolled down the threads, found my answer. thx. LOL


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