# How much did you pay in self employment fica taxes did you pay last year?



## Lee239 (Mar 24, 2017)

I don't drive for Uber anymore but my area was so bad I lost money just deduction the miles driven so I didn't owe anything. I bet it's the same with a lot of Uber drivers. The bad news for drivers is that they are not contributing to FICA so when it comes time for Social Security or SSD they won't be happy.


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## Launchpad McQuack (Jan 8, 2019)

Lee239 said:


> The bad news for drivers is that they are not contributing to FICA so when it comes time for Social Security or SSD they won't be happy.


If you're my age or younger, the odds are pretty slim that Social Security is still going to exist by the time you are old enough to benefit from it.


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## FLKeys (Dec 27, 2018)

Launchpad McQuack said:


> If you're my age or younger, the odds are pretty slim that Social Security is still going to exist by the time you are old enough to benefit from it.


I have been hearing that for 20+ years. I can see benefits not rising much from current levels, but not being done away with completely. The political party heading the White House at the time it was eliminated would be committing suicide in my opinion.


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## Lee239 (Mar 24, 2017)

Launchpad McQuack said:


> If you're my age or younger, the odds are pretty slim that Social Security is still going to exist by the time you are old enough to benefit from it.


Trust me there will be some money, if not SS there will be some kind of minimum guarantee that you can survive on or try too, otherwise they will have to bring Welfare back and let seniors apply. There is no way people are going to vote in a President who allows it to end. The rich have all the money now, and they will have it then, we just tax them to cover SS. Also raising the cap on how much rich people have to contribute will keep it solvent for many decades to come, for now they stop paying at about $125K a year in income.

I think a bigger problem before SS runs out is finding an alternative minimum wage when work ends because it's all automated, I know the rich want to keep everything but we will have to hand them a fascist dictatorship before it happens.

Also now if you don't contribute and become incapacitated with MS or something awful if you pay in you are eligible for Social Security Disability, If you don't you may qualify for SSI which is a federal welfare program for the sick who did not contribute and it's about 70% below the lowest poverty level.


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## Bbonez (Aug 10, 2018)

Lee239 said:


> The bad news for drivers is that they are not contributing to FICA so when it comes time for Social Security or SSD they won't be happy.


Taxes are very complex and individual circumstances make huge differences. Social security is based on your highest 35 years of earnings, for some divers uber years will never make it into the calculation.

Also, if the driver cheats on his taxes and invests the FICA tax into a personal IRA the driver would have more money at retirement age.

Other drivers want to show a bigger profit to qualify for a bigger EITC.

At the end of the day the choice is personal because you will need to deal with the audit if you're fudging the numbers.


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

Bbonez said:


> Taxes are very complex and individual circumstances make huge differences. Social security is based on your highest 35 years of earnings, for some divers uber years will never make it into the calculation.
> 
> Also, if the driver cheats on his taxes and invests the FICA tax into a personal IRA the driver would have more money at retirement age.
> 
> ...


I would totally add $10,000 in cash revenue to bump up my EITC numbers. (or shave expenses)


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## Pax Collector (Feb 18, 2018)

$0. 

In fact, I did declare a ~$5,000 loss.


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## Lee239 (Mar 24, 2017)

Pax Collector said:


> $0.
> 
> In fact, I did declare a ~$5,000 loss.


Did you have a $5K loss from Uber or did you declare that?

I do think most people make some profit doing this or they would not do it. I was in a very slow area so it was common to do a ride and then wait somewhere for nothing and then go back home and I did have an actual loss from just deduction the mileage, but people in ares where it's busy are not going to have a loss on miles alone, nor are people who get surge, which I never got when I drove my 45 day waste of time using my car for a payday loan. and leaving my house sitting in traffic to pick someone up for a $2.32 ride for 45 minutes waste of time on the road (6 mile ride with lights and traffic to pick up. one mile ride. now 7 miles ride home) , while sitting on call for hours for that BS waiting for a ping.


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## Pax Collector (Feb 18, 2018)

Lee239 said:


> Did you have a $5K loss from Uber or did you declare that?
> 
> I do think most people make some profit doing this or they would not do it. I was in a very slow area so it was common to do a ride and then wait somewhere for nothing and then go back home and I did have an actual loss from just deduction the mileage, but people in ares where it's busy are not going to have a loss on miles alone, nor are people who get surge, which I never got when I drove my 45 day waste of time using my car for a payday loan.


I did make money, however, according to the IRS, I incurred a loss when factoring in depreciation. This gig is nothing more than borrowing money against the equity of your car, which I did.


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## Lee239 (Mar 24, 2017)

Pax Collector said:


> I did make money, however, according to the IRS, I incurred a loss when factoring in depreciation. This gig is nothing more than borrowing money against the equity of your car, which I did.


So you chose the other deduction standard rather than miles? Because it's my understanding you can't deduct miles and depreciation and repairs. Because the per mile covers all the expenses including the gas.


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## Pax Collector (Feb 18, 2018)

Lee239 said:


> So you chose the other deduction standard rather than miles? Because it's my understanding you can't deduct miles and depreciation and repairs. Because the per mile covers all the expenses including the gas.


Yes, correct. My mileage deduction and the interest I paid on my car loan was enough to put me in the negative.


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## Lee239 (Mar 24, 2017)

Pax Collector said:


> Yes, correct. My mileage deduction and the interest I paid on my car loan was enough to put me in the negative.


I doubt many people paid into self FICA even if they owed it with Uber and it's too much work for the IRS to go after these people, just to get $100 paid into SS and Medicare when they may not even owe actual income taxes after deductions.


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## Pax Collector (Feb 18, 2018)

Lee239 said:


> I doubt many people paid into self FICA even if they owed it with Uber and it's too much work for the IRS to go after these people, just to get $100 paid into SS and Medicare when they may not even owe actual income taxes after deductions.


Unless someone is grossing a ridiculous amount of money I doubt they'd owe any taxes at all. Plus I have a day job. I pay enough taxes to keep Uncle Sam happy. He ain't getting a piece of my peanuts though.


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## Lee239 (Mar 24, 2017)

Pax Collector said:


> Unless someone is grossing a ridiculous amount of money I doubt they'd owe any taxes at all. Plus I have a day job. I pay enough taxes to keep Uncle Sam happy. He ain't getting a piece of my peanuts though.


Yeah but you would still owe the Self FICA taxes, if you make more than $400 profit a year on Uber, regardless of how much in income tax you owe or don't owe.


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## Pax Collector (Feb 18, 2018)

Lee239 said:


> Yeah but you would still owe the Self FICA taxes, if you make more than $400 profit a year on Uber, regardless of how much in income tax you owe or don't owe.


Convincing the IRS that I didn't make a single dime in profit is the goal, which I've accomplished.


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