# I'm a new driver



## kcchiefsfan1982 (Aug 19, 2019)

What is a ballpark estimate of amount of money I need to save to get close to covering my taxes at the end of the year?

Should I save 30% of my earnings specifically for taxes?

Even if it is not right on, as long as it is close, that is the main thing for me. Yes, I am tracking my mileage.


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## 1.5xorbust (Nov 22, 2017)

You need to be more concerned about saving money for repairs than taxes. If you have to pay taxes on u/l income with a $.58 per mile write off then you need a new accountant.


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## 911 Guy (Feb 8, 2018)

1.5xorbust said:


> You need to be more concerned about saving money for repairs than taxes. If you have to pay taxes on u/l income with a $.54 per mile write off then you need a new accountant.


I agree, but wanted to point out that the 2019 deduction is $.58 / Mile.


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## kcchiefsfan1982 (Aug 19, 2019)

So, after my deducts, you don't think I'll be paying any taxes most likely??? I mean, let's say for every 1,000 miles driven....that is 1,000 x $.58 which equals $580. So that is $580 that won't be taxed? So, I made $800 after driving 1,000 miles...I would only be taxed on $220 of that profit???

Is this correct?

Isn't social security tax alone around 12%? That is a big cost! Also medicare/medicade tax, which may be around 2.4%.

I'm new, but I am thinking taxes are going to be high!!!!


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## Stevie The magic Unicorn (Apr 3, 2018)

kcchiefsfan1982 said:


> So, after my deducts, you don't think I'll be paying any taxes most likely??? I mean, let's say for every 1,000 miles driven....that is 1,000 x $.58 which equals $580. So that is $580 that won't be taxed? So, I made $800 after driving 1,000 miles...I would only be taxed on $220 of that profit???
> 
> Is this correct?
> 
> ...


If you make $800 per 1000 miles...
$220 is taxable, of that its 30% of what you make past like (somewhere in the neighborhood) of $12,000 (standard deduction)

In order to "owe" taxes at a rate of $800 in revenue per 1,000 miles driven you need to first bring in...

(Roughly)
$54,500 in revenue that after 64,000 miles driven leaves you a taxable income of $12,000 in profit.

This is an astronomical amount of driving to hit the 12,000 in profit to exceed the standard deduction. Also until you hit around $70,000 in revenue (a number that I doubt is achievable) this puts you in a situation where the premium tax credit can wipe out a large chunk of your tax bill.

How much you owe in taxes is less dependent on how much you make then where you work and what kind of vehicle you use and your ratio of high end pings to low end pings and your ratio of surge/PT to non surge pings and your pai/unpaid miles.

Quite simply you'll more in taxes off $500 in select/ XL pings in Seattle than $30,000 in Uberx only pings in Orlando.


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## kcchiefsfan1982 (Aug 19, 2019)

Stevie The magic Unicorn said:


> If you make $800 per 1000 miles...
> $220 is taxable, of that its 30% of what you make past like (somewhere in the neighborhood) of $12,000 (standard deduction)
> 
> In order to "owe" taxes at a rate of $800 in revenue per 1,000 miles driven you need to first bring in...
> ...


Ok, that is good news for sure! I have a regular job that makes about $40,000 taxable income...so i will have to pay some taxes for sure, but not near as much as I originally thought!! THANK GOODNESS!!!! I LOVE UBER SO FAR!


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## Stevie The magic Unicorn (Apr 3, 2018)

kcchiefsfan1982 said:


> Ok, that is good news for sure! I have a regular job that makes about $40,000 taxable income...so i will have to pay some taxes for sure, but not near as much as I originally thought!! THANK GOODNESS!!!! I LOVE UBER SO FAR!


Uhhh
That changes the math substantially.

If that's the case you'll owe the 30% on $220 per 1000 miles like you thought.

Or like $70 in taxes per $800 assuming your math remains constant.


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## 25rides7daysaweek (Nov 20, 2017)

kcchiefsfan1982 said:


> So, after my deducts, you don't think I'll be paying any taxes most likely??? I mean, let's say for every 1,000 miles driven....that is 1,000 x $.58 which equals $580. So that is $580 that won't be taxed? So, I made $800 after driving 1,000 miles...I would only be taxed on $220 of that profit???
> 
> Is this correct?
> 
> ...


Yes you'll still have to pay state and ss.
The deduction is off your federal.
If you get a 1099 an accountant may be in order to get additional deductions.



kcchiefsfan1982 said:


> Ok, that is good news for sure! I have a regular job that makes about $40,000 taxable income...so i will have to pay some taxes for sure, but not near as much as I originally thought!! THANK GOODNESS!!!! I LOVE UBER SO FAR!


Its alot of fun till you get some false accusations, a couple deactivations, 
a pay cut and see how many
miles go onto your car.
Baby your transmission, dont accept pools and avoid driving deadmiles


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## kcchiefsfan1982 (Aug 19, 2019)

I don't even think my city offers pools?!?!?

I have a manual transmission at least...i think that is a positive, as far as future expenses,,,maybe not.

So, my social security payment would be on my profit AFTER deductions...not before....is what I think I am gathering here. 30% taxes, not too bad....after deducts. I'll live with it (as if I have a choice). 

On another note...social security forced pay is the biggest scam in America!!!!!!!


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## KK2929 (Feb 9, 2017)

Actually, there are too many variables to be able to answer that question. Are you single , how many deductions, how do you file, etc. 
Since you have another job, if you have a lose in the Ride Share job, that will benefit your taxes owed in the other job.
If you owe taxes on the $40K at the end of the tax year, you are not having enough taken out each payday ( you can control that ) Ask them to take out a little extra to cover the Ride share ( maybe $25 per pay day if you are paid weekly) After this tax year, you will have a better idea on what you need to do. Stay logged on as much a possible. You want those "empty car" miles.


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## Uber's Guber (Oct 22, 2017)

kcchiefsfan1982 said:


> I'm a new driver.
> What is a ballpark estimate of amount of money I need to save to get close to covering my taxes at the end of the year?


Don't worry about your taxes.
Odds are, you'll be applying for food-stamps and Section 8 housing by the end of the year.


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## Older Chauffeur (Oct 16, 2014)

SECA is similar to the FICA withheld from your regular paycheck, except that you and your employer split the amounts between you. Self employed taxpayers are on the hook for the entire 15.3% on net profits, if those profits exceed the $400 threshold. You do get credit for half of the SECA on Form 1040.

Disclaimer: I’m not a tax professional.


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## lyft_rat (Jul 1, 2019)

Don't forget to report all your cash tips and don't even think of padding your miles to lower your tax.


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## Uber's Guber (Oct 22, 2017)

lyft_rat said:


> Don't forget to report all your cash tips


That's right! The IRS knows us Uber/Lyft drivers are being drowned in tips by our clientele who hold us drivers in high regards. In fact, our pax put us drivers so high up on the pedestal, the sunlight blinds their eyes when they look up to us.
You can write off the cost you paid for that wheel barrel to move all those cash tips to the bank.
Disclaimer: I'm not a tax professional, because if I was, I would know better than to waste my livelihood being an Uber driver. ?


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## 911 Guy (Feb 8, 2018)

If you have decent income from other means, U/L are the poor man's tax loophole. Drive on.


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## Illini (Mar 14, 2019)

Rerun last year's tax return, and enter your estimated 2019 Uber data into it to get a ballpark of the impact.
So far, I don't believe any of the self employed tax laws have changed in 2019, except for the new standard mileage rate.


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## kcchiefsfan1982 (Aug 19, 2019)

lyft_rat said:


> Don't forget to report all your cash tips and don't even think of padding your miles to lower your tax.


Is this a joke? You think I am going to report cash tips? HAHAHAHAHA! After we are all already being robbed being forced to pay into social security! HAHAHA! WOWZERS!!!

I'll report what I report.


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## 25rides7daysaweek (Nov 20, 2017)

kcchiefsfan1982 said:


> Is this a joke? You think I am going to report cash tips? HAHAHAHAHA! After we are all already being robbed being forced to pay into social security! HAHAHA! WOWZERS!!!
> 
> I'll report what I report.


What are these cash tips you speak of?
I thought they werent supposed to give us tips because they were included!!!!
This is really big maybe I'll be able to get a drink for lunch and a car wash ????


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## Ssgcraig (Jul 8, 2015)

kcchiefsfan1982 said:


> I don't even think my city offers pools?!?!?
> 
> I have a manual transmission at least...i think that is a positive, as far as future expenses,,,maybe not.
> 
> ...


Wow, you Uber with a manual transmission?


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## kcchiefsfan1982 (Aug 19, 2019)

Ssgcraig said:


> Wow, you Uber with a manual transmission?


Yes! I feel like I am the only smart one out there!! Who wants to pay for a new automatic transmission?!?!?!?!?! NOT ME!

All my cars have been manual transmission since 2004. I wouldn't have it any other way!


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## Ssgcraig (Jul 8, 2015)

kcchiefsfan1982 said:


> Yes! I feel like I am the only smart one out there!! Who wants to pay for a new automatic transmission?!?!?!?!?! NOT ME!
> 
> All my cars have been manual transmission since 2004. I wouldn't have it any other way!


I've had them before. When you're stuck in traffic for two hours 5 days a week, left knee starts to hurt, time for me to give them up lol.


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## kcchiefsfan1982 (Aug 19, 2019)

Ssgcraig said:


> I've had them before. When you're stuck in traffic for two hours 5 days a week, left knee starts to hurt, time for me to give them up lol.


lol! yeah, luckily our population is only around 400,000 ppl....so we don't have traffic like that!


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## 911 Guy (Feb 8, 2018)

kcchiefsfan1982 said:


> Is this a joke? You think I am going to report cash tips? HAHAHAHAHA! After we are all already being robbed being forced to pay into social security! HAHAHA! WOWZERS!!!
> 
> I'll report what I report.


I report all cash tips. The one's I remember. I'm getting old and my memory is going though. Now I just default to 42.


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