# Question about Taxes with numbers provided.



## James Lee (Nov 10, 2015)

I am currently in the process of becoming new Uber driver. I will be driving select.

Let's assume the numbers here. Assuming I made 1,000 trips with 10 miles each.

15,000 Miles (10,000 miles + 5,000 dead miles)
31,000 Gross Income
10,630 Uber Cut (<8,680 =28% Uber cut> + 1950 safe rides fee)
20,370 Net Income
8625 Tax Deduction (.575 * 15,000 miles)
11,745 Taxable Income (Net - Tax Deduction)
15.3 Tax Rate (12.4% SS + 2.9% Medical) - Texas with no state tax

Then my owed tax will be 1796.99.

Is that a correct formulas to calculate my taxes? If not, what am I missing or doing wrong here?

Thank you!


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## LAuberX (Jun 3, 2014)

If you drive only 10,000 "paid" UberSelect miles your gross fares will be on the order of $24,000 so adjust your estimate based on the per mile / per minute rate of the city you hope to work in.

Dallas is at 1.85/mile .25/minute gross as an example.


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## James Lee (Nov 10, 2015)

I live in Houston, with .3/min + 2.25/mile. I'm assuming 1,000 trips in a year with 10 miles per each trip.
4,000 ($4 base fare * 1000 trips)
3000 (.3/min * 1000 trips * 10 min/trip)
22500 (2.25/mile * 1000 trips * 10 miles/trip)
1950 (1.95 safe rides * 1000 trips)

31,450 (roughly 31,000)

I know these numbers are not accurate since I haven't drove yet. But as far as tax formulas goes, is that the correct formula to calculate my taxes for the year?


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## UberGuitarist (Sep 14, 2015)

You calculated your self employment tax (15.3%), but not your federal income tax. There's not enough info to calculate federal income tax, as we would need the amount of other income, number of exemptions, filing status and standard vs itemized deduction, for starters, and it could get much more complicated. Your best bet would be simply to estimate the marginal tax rate (probably 10%, 15% or 25%).


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## James Lee (Nov 10, 2015)

Sorry, I'm single. My other full-time job, I'm making 63k + incentive which roughly 85k a year with 2 exemptions. I will be filing as standard mileage deduction.


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## James Lee (Nov 10, 2015)

Nvm, I found a formula to calculate Federal Income Tax, and came out to be $1,311 on top of that 
So I felt into 25% bracket....


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## UberGuitarist (Sep 14, 2015)

I came back to suggest 25%. I see you already got there. However, 25% of $11,745 is closer to $3,000 than to $1,300.


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## UberTaxPro (Oct 3, 2014)

James Lee said:


> I am currently in the process of becoming new Uber driver. I will be driving select.
> 
> Let's assume the numbers here. Assuming I made 1,000 trips with 10 miles each.
> 
> ...


You can find tax calculators here https://www.dinkytown.net/taxes.html
By using the self employment calculator and the 1040 calculator can get your estimate easily.


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