# New to full time rideshare...



## lazyamerican (Jul 15, 2017)

Say I make $2300 in a month....my mileage deduction amounts to $1800ish.....leaving roughly $500 taxable? If I'm understanding that correctly...then taking that figure and applying 15.3% to it would give me rougly $76 for that month. How do I figure income tax into this as well? Apologies in advance for probably a really stupid question....but the past decade I've been employed and have really only needed to left click a few times on turbo tax each year due to a very simple tax situation.


----------



## Rockocubs (Jul 31, 2017)

is this your only income?


----------



## Older Chauffeur (Oct 16, 2014)

lazyamerican said:


> Say I make $2300 in a month....my mileage deduction amounts to $1800ish.....leaving roughly $500 taxable? If I'm understanding that correctly...then taking that figure and applying 15.3% to it would give me rougly $76 for that month. How do I figure income tax into this as well? Apologies in advance for probably a really stupid question....but the past decade I've been employed and have really only needed to left click a few times on turbo tax each year due to a very simple tax situation.


Play with your TurboTax and pretend the figures you listed were for 2018. Add a Schedule C to your return showing a net profit of $6000 for the year. It should credit you for half of the 15.3% contribution to Social Security and Medicare on your Form 1040. You will then have a pretty good idea how it will effect your taxes, and you can adjust your withholding at your regular job to even things out. (I'm assuming you are just starting out with ride sharing in 2019.)

Be sure to keep a mileage log, including dead miles between pings and you may find the mileage write off and cell phone bills take your profit down to where you might not have any tax liabilities.

Edit: just looking at some of your older posts and see that you have been in the game at least a couple of years.
So you're now driving full time with no regular job at which to adjust withholding? If you owe $1000 or more you may need to make quarterly estimated payments. (Probably unlikely.)

Anyway, you can still fiddle with T/T and plug in different numbers to see what happens tax wise. It doesn't cost you anything until you file a final return, right? (I use the CD format of the Deluxe Version and I can run various returns without any extra cost if I'm not filing them.)

Disclaimer: I'm not a tax professional.


----------



## rh7744 (Feb 4, 2019)

If you're single, the standard deduction is $12,000. So, if this is your only income and you net $500 per month, that means your annual income will be $6,000 and you will have no income tax. You do still owe the self employment tax of about 15% on your net income, so you can just estimate your tax liability being about $900 (if you have nothing else on your return).


----------

