# Estimated taxes for new driver



## Evan1979 (Jan 14, 2018)

Hi,

So I'm new to driving Uber and 1099 taxes. I started driving Uber September of last year pretty much full time. I see that estimated taxes are due Jan. 15th but I have not received any documents from Uber. Are we supposed to guess all of the 1099-K and 1099-MISC information?

Evan


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## UberTaxPro (Oct 3, 2014)

Evan1979 said:


> Hi,
> 
> So I'm new to driving Uber and 1099 taxes. I started driving Uber September of last year pretty much full time. I see that estimated taxes are due Jan. 15th but I have not received any documents from Uber. Are we supposed to guess all of the 1099-K and 1099-MISC information?
> 
> Evan


Uber is required to send you the 1099's by Jan 31. The 1099's are for your annual 1040 taxes due April 17. Estimated taxes due on Jan 15 are a different animal,1099's won't help you with your current estimated taxes. 
Your operating a business now and your tax treatment will be the same as any other business. Do you have a bookkeeping system for your business? Without a good system you'll always be in the dark about your business financials and taxes. Here's where you can learn about estimated taxes:
https://www.irs.gov/pub/irs-pdf/p505.pdf


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## txdrvr (Jan 8, 2018)

What is the difference between estimated taxes and the taxes we are supposed to account for before April 17? And then there was someone mentioning quarterly taxes...are those the same as estimated taxes?


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## UberTaxPro (Oct 3, 2014)

txdrvr said:


> What is the difference between estimated taxes and the taxes we are supposed to account for before April 17? And then there was someone mentioning quarterly taxes...are those the same as estimated taxes?


The tax system is a pay as you go system for everyone. When you work a W-2 job (an employee) your employer deducts your taxes from your pay and remits them to the government for you. Someone whose income comes from one W-2 job usually owes very little or gets a refund from their 1040 filed on April 17.

An Uber driver on other hand, doesn't have taxes taken out from the weekly payouts. That's because the Uber driver is self-employed and responsible to make her own tax payments to the government. Since the tax system is a pay as you go for *everyone*, the Uber driver must have a way to pay the taxes just like the W-2 worker that has her taxes taken out each paycheck. Otherwise it wouldn't be fair to all taxpayers. Estimated taxes are the way the IRS requires self-employed people to make the same tax payments as a W-2 worker.

So, estimated taxes and the taxes due April 17 are the same. If you make your estimated taxes all year you'll owe little or maybe get a refund back come April 17 just like the W-2 employee. If you have income and don't make any estimated taxes during the year you could owe the whole years worth of taxes come April 17 plus penalties and interest for not making the estimated taxes when due.

Estimated taxes are paid 4 times per year. It's not exactly quarterly but it's close. People may refer to them as quarterly taxes but it's not a 100% accurate description.

Quarterly taxes more properly refer to IRS form 941 and other State tax forms that business's with payrolls are required to file quarterly.


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## txdrvr (Jan 8, 2018)

2 Questions
1. For my estimated tax payment and not having previous year of driving.....would adding up my ridesharing deposits and paying the tax (is that 30%?) on those deposits make the estimated tax? 

2. I have a W2 job. Does my employer pay all of my taxes on my pay to the feds and do they do that weekly?


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