# Strong start to getting sweet refund from IRS next spring



## Heisenburger (Sep 19, 2016)

By my math, this looks like a strong start to getting a sweet ass refund from the sweeties at the IRS next spring. (Only mileage deduction is here so far, so this excludes all non-vehicle expenses like device and data.)

*How are you guys doing so far in this area?*

Remember that rideshare and delivery services are legitimate businesses and you are *entitled, *per the federal government, (some might say the tax code is an entitlement program) to take all prescribed/allowed business related expenses as tax deductions to reduce your tax liability and maybe even get a refund like I do each and every spring. We have to spend money to earn money, so let's get deducting!

*How are you guys doing so far in this area?*


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

Hopefully you’re not like the lazy fools who simply enter the simplified summary of miles provided by Uber at the end of year. The IRS will disallow any mileage deductions not backed up by detailed trip information.


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## bobby747 (Dec 29, 2015)

If your getting a refund without dependents. #1 you are a high miles low earner. Or you did your taxes wrong and dont make much . Guys grossing over 75k a year . Pay taxes. I am one of them . I pay a professional.


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## ObeyTheNumbers (7 mo ago)

Heisenburger said:


> By my math, this looks like a strong start to getting a sweet ass refund from the sweeties at the IRS next spring. (Only mileage deduction is here so far, so this excludes all non-vehicle expenses like device and data.)
> 
> *How are you guys doing so far in this area?*
> 
> ...


I give my accountant several things.

The total odometer miles (picture of trip meter)
The total personal miles (I record those rare things)

Annual cost of phone, car washes, repairs, treats etc. Because if this amount is more than the tax credit, then the higher amount is used.

Usually just the .58 or (as since July 1st now) .62 tax credit on the miles driven does the trick to reduce the actual income down. 

Running as a sole proprietorship is best my account says because of the tax credit, one usually makes out better as their actual costs per vehicle mile are lower than the IRS numbers. However with the gas price being high, that may no longer be the case 

So 85,000 miles driven, taxable income of $15,000. 100,000 miles driven taxable income of $30,000.

I Uber full time, thus my method is to only record the rare personal miles taken without the meter being on. I don't use Ubers online numbers as it doesn't account for me turning off the app and coming home after a long trip.

So it's Ubers number plus return trips home off line which last year was an additional 17,000 miles. 😁

If one is doing rideshare full time, I would suggest saving around $10,000 just for taxes so the sting isn't too bad. 😳


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

bobby747 said:


> If your getting a refund without dependents. #1 you are a high miles low earner. Or you did your taxes wrong and dont make much . Guys grossing over 75k a year . Pay taxes. I am one of them . I pay a professional.


Ubering is a loss. Use that deduction to write down earnings derived from real income.


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## Heisenburger (Sep 19, 2016)

ObeyTheNumbers said:


> If one is doing rideshare full time, I would suggest saving around $10,000 just for taxes so the sting isn't too bad.


I don't follow. I have a family of four. File jointly with spouse. Two minor dependents. We've received a large ($3-6k) refund *every single year *for the past several years where rideshare was in play.


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## Heisenburger (Sep 19, 2016)

Uber's Guber said:


> The IRS will disallow any mileage deductions not backed up by detailed trip information.


*Only* if audited. I've never been.


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## ObeyTheNumbers (7 mo ago)

Heisenburger said:


> I don't follow. I have a family of four. File jointly with spouse. Two minor dependents. We've received a large ($3-6k) refund *every single year *for the past several years where rideshare was in play.


Your getting a refund because your paying the IRS as you go along right? You have other sources of income?

You get family deductions right?

A refund is just an adjustment that you were paying too much during the year, but couldn't know that in advance obviously.

Uber is my only source of income, I'm single and I pay nothing until tax time which hasn't been anything but social security due to other deductions I have that others won't have.

If others like me doing the same program need to save money for that huge balloon payment to Uncle Sammy.


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## bobby747 (Dec 29, 2015)

Uber's Guber said:


> Ubering is a loss. Use that deduction to write down earnings derived from real income.


I do a different platform and turn a constant profit..uber x is a loss ...


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## Heisenburger (Sep 19, 2016)

ObeyTheNumbers said:


> Your getting a refund because your paying the IRS as you go along right?


No. Zero. Never have paid anything in advance. No estimated payments.



ObeyTheNumbers said:


> You have other sources of income?


No.



ObeyTheNumbers said:


> You get family deductions right?


Yes.


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## Heisenburger (Sep 19, 2016)

ObeyTheNumbers said:


> Annual cost of phone, car washes, repairs, treats etc. Because if this amount is more than the tax credit, then the higher amount is used.


Has it *ever* been higher for you?

I've never seen it higher, mainly because my vehicle is older (depreciation hits were taken by previous owner) and relatively cheap to maintain/repair.


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## Heisenburger (Sep 19, 2016)

bobby747 said:


> I pay a professional.


Me too. His legal name is Intuit, but most clients just use his nickname TurboTax.


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## bobby747 (Dec 29, 2015)

Well I do 4 different platforms and get 1099k and 1099 Misc. Turbo tax does not allow for max deductions . Like purchase of a wheelchair van. So instead of being smart about it. Take my word. 8years all platforms. 2 years paying a pro has saved my ass. I dont earn $.70 a mile


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## ObeyTheNumbers (7 mo ago)

Heisenburger said:


> Has it *ever* been higher for you?
> 
> I've never seen it higher, mainly because my vehicle is older (depreciation hits were taken by previous owner) and relatively cheap to maintain/repair.


Not yet.

But this year perhaps.


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## Ted Fink (Mar 19, 2018)

Heisenburger said:


> Remember that rideshare and delivery services are legitimate businesses and you are *entitled, *per the federal government, (some might say the tax code is an entitlement program) to take all prescribed/allowed business related expenses as tax deductions to reduce your tax liability and maybe even get a refund like I do each and every spring. We have to spend money to earn money, so let's get deducting!
> 
> *How are you guys doing so far in this area?*


I don't use fancy software but here's my YTD:

Gross Income $25,657.52, total expenses $15,521.72, taxable profit (so far) $10135.80, estimated tax $2648.44 and I've paid $2321.07 in quarterly payments so far

*TO COMPUTE ESTIMATED TAX:

Take your taxable profit times your tax rate (mine is 12%) and add self employment tax.
Self employment tax is computed a little different. Take your taxable profit, multiply by 92.35% (because of qualified business income deduction) and then take 15.3% of that.

For example, taxable profit $1000

$1000 times 12% = $120 income tax
$1000 times 92.35% = $923.50 times 15.3% = $141.30
Total $261.30 you pay for every $1000 in profit. If you're in the same tax bracket as me.
If you are in 15% or 18% tax bracket or whatever, adjust accordingly.

You're welcome.


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## Heisenburger (Sep 19, 2016)

bobby747 said:


> So instead of being smart about it. Take my word. 8years all platforms. 2 years paying a pro has saved my ass.


It's called humor.

My results wouldn't be different if I paid a human to perform it manually. For my simple situation, I'd be a fool to pay a person. Many people have a different scenario.



bobby747 said:


> I dont earn $.70 a mile


Me neither.



ObeyTheNumbers said:


> But this year perhaps.


Interesting. Why?


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## bobby747 (Dec 29, 2015)

Got to love it when you see SHIT BOX LE..


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## Heisenburger (Sep 19, 2016)

bobby747 said:


> Got to love it when you see SHIT BOX LE..


Yep LE means luxury edition


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## nosurgenodrive (May 13, 2019)

Stop with the Uber miles. You can deduct dead head miles. Just log it in your log. If I wanted to drive to another state and deliver there to see if it is a viable place to relocate, I could deduct the miles to and from the location and the hotel.


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## Ludy (Nov 9, 2021)

Won't you be paying taxes on that $7700 profit? How do you figure that's a refund? I also have a family of four with two minor dependents. I have a W2 job that earns most of my income. I do Uber on the side but am right now sitting at 14k gross, 7.5k in expenses, and 1.5 in taxes owed. That 1.5 will be deducted from the 5k or so refund we get every year.


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## Heisenburger (Sep 19, 2016)

Ludy said:


> Won't you be paying taxes on that $7700 profit?


Nope. It's because our gross household income is so low for four people.


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## Heisenburger (Sep 19, 2016)

Past 3 years joint filing with spouse in Georgia. Two minor dependents all along.


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## Heisenburger (Sep 19, 2016)

Heisenburger said:


> Past 3 years joint filing with spouse in Georgia. Two minor dependents all along.


Thank you former president Trump for allowing us to suckle on the gubment teats!


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## NauticalWheeler (Jun 15, 2019)

This was the first year I've owed taxes ever, but it was only $2××.


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## Amsoil Uber Connect (Jan 14, 2015)

What I want to know is, For those who filed last years paper Return, Have they got there refund yet ? 

Cause I have not. 

Per Covid I use to get it before Memorial Day.


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## Heisenburger (Sep 19, 2016)

It's looking great so far from this perspective! Have you guys started your legwork yet?


```
Tax Summary
Sat Jan 01 2022 - Sat Dec 31 2022
Give this form to your tax preparer or use it while filing your taxes.
Income
Total Income $30,227.70
Deductions
Expense Category Value Deductible
Deductible Mileage 24,477.45 mi $15,021.06
Other Expenses
Phone & Service $325.00 $206.50
Total $325.00 $206.50
Total Tax Deductions $15,227.56
```


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## Heisenburger (Sep 19, 2016)

Heisenburger said:


> Have you guys started your legwork yet?


It doesn't seem so.


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## Heisenburger (Sep 19, 2016)

It's looking like I'll clear *at least* $7k on this round.


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