# How many UBERX drivers saved money to pay taxes?



## Nooa

How many UBERX drivers saved money to pay taxes? 

This is a serious problem for independent contractors. I have known many Carey I/o back in the day of them that made $10000 a month bought new homes, cars, fancy vacations, but never thought about paying taxes on $120,000 a year. In no way am I comparing Carey i/o to uber x drivers but, If you drive uber x Full time & are still living day to day, week by week, month to month with no signs of pay going up & you don't even consider the the taxes you should be paying QUARTERLY .. YOU ARE ALL DONE. UBER DOES NO
NOT C ARE ABOUT YOU. SHUT YOUR APP OFF..!!!!!


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## Former Yellow Driver

I'm sure all of us are saving appropriately for the huge amount of income taxes we'll be required to pay for living this life of luxury.


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## ElectroFuzz

You only need to pay taxes if you make a profit.
With Uber's wonderful rates I don't need to worry about that one.


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## UberHammer

If you are paying taxes on Uber income, you're doing it wrong.


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## Simon

UberHammer said:


> If you are paying taxes on Uber income, you're doing it wrong.


Lol


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## Nooa

Lol but serious some of these I will do anything for uber people that will drive for 70¢ a mile & put 100000 miles on their car to make $35000 dollars will get a form 1099 from uber for this amount & will have to at least file taxes & hopefully they saved every receipt for gas, car wash, oil changes, (lol with these) tires, brakes, dry cleaning, suits, (big laugh) news papers, cell phone bills, Internet, car insurance, car payments, candy, WATER, kleenex, & I could keep going. Write off everything but IF you have anything left over the government will expect their share..+ social security, Medicare, health insurance, workers compensation insurance. 

Ya never mind you made negative money. 
but good luck paying $500 to get your taxes done by a good account so you don't get audited. 
That's PRICELESS..


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## ElectroFuzz

Nooa said:


> Lol but serious some of these I will do anything for uber people that will drive for 70¢ a mile & put 100000 miles on their car to make $35000 dollars will get a form 1099 from uber for this amount & will have to at least file taxes & hopefully they saved every receipt for gas, car wash, oil changes, (lol with these) tires, brakes, dry cleaning, suits, (big laugh) news papers, cell phone bills, Internet, car insurance, car payments, candy, WATER, kleenex, & I could keep going. Write off everything but IF you have anything left over the government will expect their share..+ social security, Medicare, health insurance, workers compensation insurance.
> 
> Ya never mind you made negative money.
> but good luck paying $500 to get your taxes done by a good account so you don't get audited.
> That's PRICELESS..


No need to save receipts, just take the standard IRS deduction.
100,000 miles x $0.57 = $57,000 
aka $22,000 loss.....


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## Realityshark

Nooa said:


> How many UBERX drivers saved money to pay taxes?
> 
> This is a serious problem for independent contractors. I have known many Carey I/o back in the day of them that made $10000 a month bought new homes, cars, fancy vacations, but never thought about paying taxes on $120,000 a year. In no way am I comparing Carey i/o to uber x drivers but, If you drive uber x Full time & are still living day to day, week by week, month to month with no signs of pay going up & you don't even consider the the taxes you should be paying QUARTERLY .. YOU ARE ALL DONE. UBER DOES NO
> NOT C ARE ABOUT YOU. SHUT YOUR APP OFF..!!!!!


I don't think it will be a problem. I've kept track of my mileage.


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## CityGirl

ElectroFuzz said:


> You only need to pay taxes if you make a profit.
> With Uber's wonderful rates I don't need to worry about that one.


Exactly. And if you are making a profit, you need a better CPA.


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## Ram

Really thanks for advice, I am one one those week by week since just started 3 mount ago and had 7 years of really bad income and trying to how I could get deal with IRS , more advices will be getting lots of us in right directions


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## SDUberdriver

ElectroFuzz said:


> You only need to pay taxes if you make a profit.
> With Uber's wonderful rates I don't need to worry about that one.


_LOL!!!!_


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## Ram

Believe it or not , LOL too


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## Walkersm

F taxes is anyone saving any money for brakes and tires? No one ever hit a pedestrian because they could not afford to pay their taxes.


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## MrsUberJax

Folks, if you have never worked 1099 before and are afraid of the taxes, take a breath! Its not all doom and gloom! The American Tax system benefits the small business owner (and yes, if you are 1099, you're running your own business) and the deductions that you can take as a business owner - DEDUCTIONS, the amount of money that you can deduct from your earned income that will NOT BE TAXED, yes deductions can really add up. In fact, it is not uncommon for a small business owner to deduct 100% of his earned income during the first few years of his business and in fact, have no tax liability at all. So, instead of frightning all the 1099 newbies with that dreaded 30% misnomer...


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## Roogy

Nooa said:


> Ya never mind you made negative money.
> but good luck paying $500 to get your taxes done by a good account so you don't get audited.


Probably only get audited if you show a gain. IRS won't believe anyone could make a profit at this job.


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## Oscar Levant

Nooa said:


> How many UBERX drivers saved money to pay taxes?
> 
> This is a serious problem for independent contractors. I have known many Carey I/o back in the day of them that made $10000 a month bought new homes, cars, fancy vacations, but never thought about paying taxes on $120,000 a year. In no way am I comparing Carey i/o to uber x drivers but, If you drive uber x Full time & are still living day to day, week by week, month to month with no signs of pay going up & you don't even consider the the taxes you should be paying QUARTERLY .. YOU ARE ALL DONE. UBER DOES NO
> NOT C ARE ABOUT YOU. SHUT YOUR APP OFF..!!!!!


I took a huge deduction with mileage, car payments, and such, it really lowered by tax bill. I just followed TurboTax instructions. Even then, I couldnt' afford to pay the tax, so I called up the IRS, and they have placed me in "non-collectable" status. That means they stopped sending me scary letters. I do this every year 'cause I'm a po' boy. I do hope, someday, to increase my income to a level whereby I can pay my taxes, though. Im' a songwriter, so maybe I'll write a hit song


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## Rob617

Oscar Levant said:


> I took a huge deduction with mileage, car payments, and such, it really lowered by tax bill. I just followed TurboTax instructions. Even then, I couldnt' afford to pay the tax, so I called up the IRS, and they have placed me in "non-collectable" status. That means they stopped sending me scary letters. I do this every year 'cause I'm a po' boy. I do hope, someday, to increase my income to a level whereby I can pay my taxes, though. Im' a songwriter, so maybe I'll write a hit song


Nah, just stay in non collect status for what is it 9 years? Either way if you want to make money without uber and are in San Diego pensacola or midland mi I can help you, and you can do uber for beer money, but as far as the irs, you can deduct uber into a net loss, and then receive tax credit on previously owed amounts and knock it down some that way.


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## UberXTampa

I am at a huge loss UberXing per IRS rules. I bought an iPad to use strictly for business and nothing else. I am paying a data plan monthly for it. I will use the mileage deduction and will be in negative territory legally. no need to do anything else. since UberX is not making a lot of money, the real issue for me is to make a lot of money elsewhere to use UberX as offset for it!


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## Rob617

UberXTampa said:


> I am at a huge loss UberXing per IRS rules. I bought an iPad to use strictly for business and nothing else. I am paying a data plan monthly for it. I will use the mileage deduction and will be in negative territory legally. no need to do anything else. since UberX is not making a lot of money, the real issue for me is to make a lot of money elsewhere to use UberX as offset for it!


And now someone of my own heart, trust me uber is making me more by losing me money than you could know, of course I am not trying to make uber money either.. I'm just an ass like that. I'm off to the airport, because I Want to Piss off cops with actually knowing the rules.


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## dcsamurai

Roogy said:


> Probably only get audited if you show a gain. IRS won't believe anyone could make a profit at this job.


An excessive loss is also audit bait as well.

I've run my own businesses since junior high, starting with lawn cutting (basically what I'm doing now, without the trucks and crews), so the tax issue isn't a big deal to me. Audits usually aren't that bad if you have the documents at hand to back up your claims. Last year will be a loss overall ubering which will help with the rest of my tax bill. I don't know how you guys who do it full time can make a living at it.


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## Rob617

dcsamurai said:


> An excessive loss is also audit bait as well.
> 
> I've run my own businesses since junior high, starting with lawn cutting (basically what I'm doing now, without the trucks and crews), so the tax issue isn't a big deal to me. Audits usually aren't that bad if you have the documents at hand to back up your claims. Last year will be a loss overall ubering which will help with the rest of my tax bill. I don't know how you guys who do it full time can make a living at it.


Uber has high payin hours and neighborhoods. Around me to make any money I stay clear of detroit and ann arbor, but near me in Bloomfield hills it isn't bad. I drive new cars, heated seats and new car smell help open pockets. Of course college kids are a pain in the knickers. 11pm-3am is a good paying 4 hour stretch, of course the airports have decent runs, but if you want to make more than 20k a year uber isnt for you, it's basically a paper route now.


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## butchr

UberHammer said:


> If you are paying taxes on Uber income, you're doing it wrong.


Yep.


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## Luberon

Serious question:
Every night I go out driving I stop a gas station for cup of coffee. Can I claim my daily coffee as a deduction?
What if I don't have receipts, will credit card statements work?
Thanks


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## Heni Kaufusi

luberon, yes it works. at restaurants save your reciepts. write down what u talked about uber and with who. the tip part is non expensable. you dont even have to drive..you can have a meeting with another uber driver to discuss business meeting over beer and chicken wings.


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## biozon

Nooa said:


> How many UBERX drivers saved money to pay taxes?


 I would assume not many. At least I didn't. With the depreciation, gas expenses, maintenance expenses, tax credits I won't have to pay a dime this year.



Nooa said:


> but never thought about paying taxes on $120,000 a year.


 There is no way in hell to make a $120,000 a year Ubering.

Dunno about others, but without doing it truly full time, I don't think one can even make a 30,000 a year.


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## Uberaccountant

ElectroFuzz said:


> No need to save receipts, just take the standard IRS deduction.
> 100,000 miles x $0.57 = $57,000
> aka $22,000 loss.....


Always keep your receipts and a log of your mileage in the event that you get audited by the IRS.

_The following are some of the types of records you should keep:_


*Gross receipts* are the income you receive from your business. You should keep supporting documents that show the amounts and sources of your gross receipts. Documents for gross receipts include the following:
Cash register tapes
Bank deposit slips
Receipt books
Invoices
Credit card charge slips
Forms 1099-MISC

*Purchases* are the items you buy and resell to customers. If you are a manufacturer or producer, this includes the cost of all raw materials or parts purchased for manufacture into finished products. Your supporting documents should show the amount paid and that the amount was for purchases. Documents for purchases include the following:
Canceled checks
Cash register tape receipts
Credit card sales slips
Invoices

*Expenses* are the costs you incur (other than purchases) to carry on your business. Your supporting documents should show the amount paid and that the amount was for a business expense. Documents for expenses include the following:
Canceled checks
Cash register tapes
Account statements
Credit card sales slips
Invoices
Petty cash slips for small cash payments

*Travel, Transportation, Entertainment, and Gift Expenses*
If you deduct travel, entertainment, gift or transportation expenses, you must be able to prove (substantiate) certain elements of expenses.

*Assets* are the property, such as machinery and furniture, that you own and use in your business. You must keep records to verify certain information about your business assets. You need records to compute the annual depreciation and the gain or loss when you sell the assets. Documents for assets include the following:
When and how you acquired the assets.
Purchase price
Cost of any improvements.
Section 179 deduction taken.
Deductions taken for depreciation.
Deductions taken for casualty losses, such as losses resulting from fires or storms.
How you used the asset.
When and how you disposed of the asset.
Selling price.
Expenses of sale.
The following documents may show this information.

Purchase and sales invoices.
Real estate closing statements.
Canceled checks.


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## Long time Nyc cab driver

Nooa said:


> How many UBERX drivers saved money to pay taxes?
> 
> This is a serious problem for independent contractors. I have known many Carey I/o back in the day of them that made $10000 a month bought new homes, cars, fancy vacations, but never thought about paying taxes on $120,000 a year. In no way am I comparing Carey i/o to uber x drivers but, If you drive uber x Full time & are still living day to day, week by week, month to month with no signs of pay going up & you don't even consider the the taxes you should be paying QUARTERLY .. YOU ARE ALL DONE. UBER DOES NO
> NOT C ARE ABOUT YOU. SHUT YOUR APP OFF..!!!!!


Carey was a good company, did you have a car with them ? I doubt if 2% of the people here even heard of Carey. I heard it sucks now.


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## Nooa

Long time Nyc cab driver said:


> Carey was a good company, did you have a car with them ? I doubt if 2% of the people here even heard of Carey. I heard it sucks now.


No I had my own company that did sub work for then. Never liked to be tied to just 1 company. When uber came in to Boston many Carey i/o drivers had just been terminated & now do uber black & Suv.


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## Long time Nyc cab driver

Nooa said:


> No I had my own company that did sub work for then. Never liked to be tied to just 1 company. When uber came in to Boston many Carey i/o drivers had just been terminated & now do uber black & Suv.


How can a Carey driver be "terminated " if they own their own car ? Here in NYC Carey was a franchise.
Not anymore, you have to give them I think it's like $50,000 every two years. In Boston you have TLC plates or limousine plates for Uber ? I know Boston Coach is pretty big there, now merged with DavEl.
I made a mistake by not working with Carey years ago, but I was making good money at a limousine company at the time anyway. 
The limousine business, sucks now, and Uber certainly didn't help.


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## Nooa

Carey basically fired all i/o and has employee drivers now. 
In Boston we have LV plates on livery vehicles uber x vehicles have both LV & regular plates


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## Salthedriver

Come on boys...we must all be on the same page! We all lost money (for tax purposes) except Uber itself and they made Billions!


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## gypsy

Anybody here did taxes for Uber last year 2013?

does anybody have the Raiser's tax id number? I need this number to do my taxes,,,,urgent...


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## Desert Driver

If you're keeping a mileage log and doing a decent job of it, the IRS standard allowance of 57 cents per mile will adequately offset any profit one may realize from driving U/L/S. That's why driving for U/L/S only works if you have an econobox with a very low CPM factor. According to the DOE, my car's CPM is 26 cents. In 2014, I drove 19,533 miles, which means my allowance for miles is $11,134.


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## Fuzzyelvis

Luberon said:


> Serious question:
> Every night I go out driving I stop a gas station for cup of coffee. Can I claim my daily coffee as a deduction?
> What if I don't have receipts, will credit card statements work?
> Thanks


No


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## Desert Driver

gypsy said:


> Anybody here did taxes for Uber last year 2013?
> 
> does anybody have the Raiser's tax id number? I need this number to do my taxes,,,,urgent...


No you don't. What you need is your 1099 from Rasier. I haven't seen mine yet either. I hate when my clients wait until Feb 1 to send out 1099 forms.


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## Fuzzyelvis

Heni Kaufusi said:


> luberon, yes it works. at restaurants save your reciepts. write down what u talked about uber and with who. the tip part is non expensable. you dont even have to drive..you can have a meeting with another uber driver to discuss business meeting over beer and chicken wings.


The meeting to discuss business technically is but if you did that daily the IRS is not stupid and would disallow it. The coffee or meals are generally not deductible unless it's a certain distance from home.


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## Desert Driver

Fuzzyelvis said:


> The meeting to discuss business technically is but if you did that daily the IRS is not stupid and would disallow it. The coffee or meals are generally not deductible unless it's a certain distance from home.


Not true. Once a month my bride and I go out for a decent meal out to discuss such topics as Uber, our rental properties, and how I'm running my consulting business. We also talk about our kids, what's happening on Veep, and where we want to vacation next summer. I've been expensing these outings for better than 10 years. Never been a problem. Just make sure you hold onto receipts and don't abuse the privilege.


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## Desert Driver

Luberon said:


> Serious question:
> Every night I go out driving I stop a gas station for cup of coffee. Can I claim my daily coffee as a deduction?
> What if I don't have receipts, will credit card statements work?
> Thanks


Deducting a cup of coffee is really not worth it. Your safer and more effective strategy is to pad your mileage log. At 57 cents per mile, you only need to pad a couple miles to cover your coffee cost - seven or eight miles to cover a venti Starbucks.


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## Derekd213

Uberaccountant said:


> Always keep your receipts and a log of your mileage in the event that you get audited by the IRS.
> 
> _The following are some of the types of records you should keep:_
> 
> 
> *Gross receipts* are the income you receive from your business. You should keep supporting documents that show the amounts and sources of your gross receipts. Documents for gross receipts include the following:
> Cash register tapes
> Bank deposit slips
> Receipt books
> Invoices
> Credit card charge slips
> Forms 1099-MISC
> 
> *Purchases* are the items you buy and resell to customers. If you are a manufacturer or producer, this includes the cost of all raw materials or parts purchased for manufacture into finished products. Your supporting documents should show the amount paid and that the amount was for purchases. Documents for purchases include the following:
> Canceled checks
> Cash register tape receipts
> Credit card sales slips
> Invoices
> 
> *Expenses* are the costs you incur (other than purchases) to carry on your business. Your supporting documents should show the amount paid and that the amount was for a business expense. Documents for expenses include the following:
> Canceled checks
> Cash register tapes
> Account statements
> Credit card sales slips
> Invoices
> Petty cash slips for small cash payments
> 
> *Travel, Transportation, Entertainment, and Gift Expenses*
> If you deduct travel, entertainment, gift or transportation expenses, you must be able to prove (substantiate) certain elements of expenses.
> 
> *Assets* are the property, such as machinery and furniture, that you own and use in your business. You must keep records to verify certain information about your business assets. You need records to compute the annual depreciation and the gain or loss when you sell the assets. Documents for assets include the following:
> When and how you acquired the assets.
> Purchase price
> Cost of any improvements.
> Section 179 deduction taken.
> Deductions taken for depreciation.
> Deductions taken for casualty losses, such as losses resulting from fires or storms.
> How you used the asset.
> When and how you disposed of the asset.
> Selling price.
> Expenses of sale.
> The following documents may show this information.
> Purchase and sales invoices.
> Real estate closing statements.
> Canceled checks.


Hey there, CPA here. You actually do not need to keep receipts. According to IRS Publication 583: Starting a Business and Keeping Records:

_Except in a few cases, the law does not require any specific kind of records. You can choose any record-keeping system suited to your business that clearly shows your income and expenses._

The reason that most people tend to keep receipts is because that's what their accountant (generally older person) has told them to do so. As a 1099 Independent Contractor, you're treated from a tax perspective in a similar manor as a company (imagine telling Apple to save all of their receipts). If you want to go paperless, check us out: trytabby.


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## jiwagon

Walkersm said:


> F taxes is anyone saving any money for brakes and tires? No one ever hit a pedestrian because they could not afford to pay their taxes.


I was on the order page 20 minutes ago to purchase new tires but then I remembered taxes and pretty much can't afford both. Now I'm here reading.


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## Nooa

MrsUberJax said:


> Folks, if you have never worked 1099 before and are afraid of the taxes, take a breath! Its not all doom and gloom! The American Tax system benefits the small business owner (and yes, if you are 1099, you're running your own business) and the deductions that you can take as a business owner - DEDUCTIONS, the amount of money that you can deduct from your earned income that will NOT BE TAXED, yes deductions can really add up. In fact, it is not uncommon for a small business owner to deduct 100% of his earned income during the first few years of his business and in fact, have no tax liability at all. So, instead of frightning all the 1099 newbies with that dreaded 30% misnomer... check out Ryder Pearce's website http://www.sherpashare.com/ or go to http://www.Zen99.com These are both firms that specialize in the 1099 economy and they can help you track your earnings and calculate your tax liability.


 First I did not create this to scare anyone. I know there are lots of uber drivers that have never had a 1099 & they need to think about all the write off's they have. But they have to keep track of all of them. Never never Never pay Cash for anything. Use a credit card, company debit card, or at least a prepaid cc. You will need the receipts.


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## Fuzzyelvis

Desert Driver said:


> Not true. Once a month my bride and I go out for a decent meal out to discuss such topics as Uber, our rental properties, and how I'm running my consulting business. We also talk about our kids, what's happening on Veep, and where we want to vacation next summer. I've been expensing these outings for better than 10 years. Never been a problem. Just make sure you hold onto receipts and don't abuse the privilege.


That's once a month. Daily would be a bit much.


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## CJ ASLAN

I filed as a loss, paid $0 in taxes.


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## marketmark

I saved 25% of my uber payouts anticipating taxes. In the end my tax bill for uber was only about 5% of my payouts.
Like a nice tax refund to myself.
Vegas anyone?


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## 3for3

Hey all, I started Uber about mid jan 15 and have yet to establish a "DBA" or a separate bank account with a EIN or what ever. The second quarter is fast approaching and I wasn't logging my miles properly but have almost all my gas receipts for the quarter plus a couple of tire repairs and a oil change or two. I have miscellaneous stuff like water, gum, car detailing or car wash receipts as well. i read somewhere that I can't deduct mileage and fuel so it has to be one or the other and i guess fuel would go under expenses if my mileage is too jacked to account for?? IDK, looking for some advice/ direction

1. What is my best coarse of action for the Jan-Mar quarter?

2. What should be my immediate course of action for second quarter?


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## Nooa

3for3 said:


> Hey all, I started Uber about mid jan 15 and have yet to establish a "DBA" or a separate bank account with a EIN or what ever. The second quarter is fast approaching and I wasn't logging my miles properly but have almost all my gas receipts for the quarter plus a couple of tire repairs and a oil change or two. I have miscellaneous stuff like water, gum, car detailing or car wash receipts as well. i read somewhere that I can't deduct mileage and fuel so it has to be one or the other and i guess fuel would go under expenses if my mileage is too jacked to account for?? IDK, looking for some advice/ direction
> 
> 1. What is my best coarse of action for the Jan-Mar quarter?
> 
> 2. What should be my immediate course of action for second quarter?


In my opinion. Get your business stuff separated from personal & pay for everything with your business credit /debit card your gas, tolls, car washes, oil changes, phone, even lunch dinner, anything while working too. It makes it easier.


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## Nooa

Back to the food. "Meal expenses are deductible if your business trip is overnight or long enough that you need to stop for substantial sleep or rest to properly perform your duties. Meal expenses are also deductible if the meal is business-related entertainment. You can figure all your travel meal expenses using either of the following methods:"
Uber drivers kill themselves 10-12 hours a day & are entitled to food. 
I drove for a company that the company paid for all the food for their employees.. They had a f##kin chef in their office. He was on the payroll.. He would take limos to pick up filet mignon, steaks, salmon, sea bass for fn lunch. If employees where on the road they would use the company cc for lunch. 
I use my company credit card for lunch..


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## Nooa

*When the IRS decides to audit your $7000 deduction for car washes then you might be in a bit of a wee sore spot * really Diane. 
Every day that we work we can write off a car wash $7-$50 dollars what ever it cost.. Get a hand wash & wax while your at it. If your working it's deductible. Put water juice, soda coffee & tea if it's for the job its deductible. I used to buy $20 worth of stuflf every time I drove a client (no he hardly touched the stuff) but if I didn't have it
he would have asked for it so I always had it.. It's deductible. We are in a service industry. Do you think a hotel writes off newspapers even though not every one reads them. Yes... Oh yes I put all local newspaper in my car every day I drive, water, magazines etc.. I can write it all off. It's for my work.


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## uberThere

DenverDiane said:


> No you cant. From : http://www.irs.gov/Help-&-Resources/Tools-&-FAQs/FAQs-for-Individuals/Frequently-Asked-Tax-Questions-&-Answers/Small-Business,-Self-Employed,-Other-Business/Income-&-Expenses/Income-&-Expenses-
> As always get your info from a *real* tax accountant and not from internet advisers


Considering the source, I'd say just get an accountant. Diane isn't exactly the person that knows squat about anything other than being an idiot.


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## UberPissed

My .02 - claim what you can substantiate - regardless of what you think will cause an audit. If you do get audited, you have the proof. The people that get bent over the barrel are the ones with no records.


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## Kevin Faaborg

I transfer 30% of my weekly net income from both Lyft and Uber to an interest bearing account. If my tax calculations show that I owe no taxes due to business expense deductions, that savings will be my "refund". I do not want to give up the Uber schedule flexibility by increasing my regular job's withholding; that just reduces my full time job's take home and forces me to work more Uber hours if I want to save money for a vacation or family reunion. It can be discouraging to see how little is left every week after setting aside money for taxes and buying gas, but the hourly rate isn't bad for a part time job. I also get to know my city better and I can meet and talk with all kinds of interesting people while on Uber time.


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## theitalianinbmore

I have not been touching a majority of my Uber income. I am pretty nervous for tax time - lots of stories I've heard. I do have a Full Time job with W2 and I've heard that may help my situation. I have been keeping good track of my Uber miles using Sherpa Share.


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## Desert Driver

theitalianinbmore said:


> I have not been touching a majority of my Uber income. I am pretty nervous for tax time - lots of stories I've heard. I do have a Full Time job with W2 and I've heard that may help my situation. I have been keeping good track of my Uber miles using Sherpa Share.


If you recognize and calculate all you costs fully and properly, driving for U/L is only slightly better than a zero sum game, so socking away a lot of dough for tax liability is typically not necessary. Yes, park some cash, but don't go overboard. The more prudent approach is to sock away copious amounts of cash for insurance (commercial livery policy) and auto repairs.


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## Desert Driver

Kevin Faaborg said:


> I transfer 30% of my weekly net income from both Lyft and Uber to an interest bearing account. If my tax calculations show that I owe no taxes due to business expense deductions, that savings will be my "refund". I do not want to give up the Uber schedule flexibility by increasing my regular job's withholding; that just reduces my full time job's take home and forces me to work more Uber hours if I want to save money for a vacation or family reunion. It can be discouraging to see how little is left every week after setting aside money for taxes and buying gas, but the hourly rate isn't bad for a part time job. I also get to know my city better and I can meet and talk with all kinds of interesting people while on Uber time.


Indeed. By the time you set aside for repairs, depreciation, and commercial livery insurance, driving for U/L becomes nearly a zero sum game, depending on how many hours you work per week.


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## UberNorthStar

<------ Hoping loss offsets taxes due on joint return in April 2016.


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## StarzykCPA

Well I don't know if I would "hope" for a loss. At least if I'm paying taxes, that means I'm making money


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## Jam Val

I shove aside tips (I used to throw them in the gas tank but stopped in June) and try really hard to put away $100 of my pay in savings for taxes (that's not fairing so well). So far I have $500 tips and $500 savings. I'm a nervous nellie when it comes to taxes. Gonna search the forum about deductions cause I'm not sure if they tax me after deductions or before.


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## Altima ATL

Hmmmmm - New Uber Commercial:

Make Tax free Income driving for Uber!


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## StarzykCPA

Jam Val said:


> I shove aside tips (I used to throw them in the gas tank but stopped in June) and try really hard to put away $100 of my pay in savings for taxes (that's not fairing so well). So far I have $500 tips and $500 savings. I'm a nervous nellie when it comes to taxes. Gonna search the forum about deductions cause I'm not sure if they tax me after deductions or before.


Never a bad idea to set aside some money. You'll be taxed on your net income, which is after any deductions you may have.


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## Jam Val

Thank you, love you, mean it! StarzykCPA I download my pay summary from Uber to a spreadsheet, add a column for miles for EACH trip and tic and tie my data to theirs to be sure I'm paid properly. I think an IRS auditor would be impressed with my record keeping. hehehe


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## Altima ATL

Try and keep some kind of paper record of mileage driven (both paid and dead miles).
Anyone (including me) can whip up a good looking spreadsheet in less than an hour that you might think is acceptable for tax purposes. Uncle Sam may view it differently.

Also *do go see a CPA *- you may save more than you think - especially if you have other income.



Jam Val said:


> Thank you, love you, mean it! StarzykCPA I download my pay summary from Uber to a spreadsheet, add a column for miles for EACH trip and tic and tie my data to theirs to be sure I'm paid properly. I think an IRS auditor would be impressed with my record keeping. hehehe


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## Another Uber Driver

Nooa said:


> How many UBERX drivers saved money to pay taxes?


I did. I pay quarterly taxes when or if my accountant advises me to pay them. He puts the vouchers in my tax return e-Mail. All that I need do is print them and send them to the City and Feds before the due date.



Roogy said:


> Probably only get audited if you show a gain. IRS won't believe anyone could make a profit at this job.


While funny from the Uber point-of-view, from the Internal Revenue's point-of-view, showing a loss is more of an "*AUDIT ME*" sign than showing a profit. In fact, more than one accountant has told me that Schedule C triggers more audits than anything else.



dcsamurai said:


> An excessive loss is also audit bait as well.


^^^^^...........Yup, what he "said"...........



Nooa said:


> Never never Never pay Cash for anything. Use a credit card, company debit card, or at least a prepaid cc. You will need the receipts.


......never pay cash for anything unless the vendor will not accept a credit card. I do try to avoid that, but every once in a while, I am compelled to make a purchase from some entity that will not accept the electronic................
I always get a receipt. According to Internal Revenue rules, all that you need, really, is a receipt*. Still, the credit card is better, because it provides an extra level of documentation and covers you if you do lose the receipt. When dealing with the Internal Revenue, it is best not only to document everything, but also to document the documentation and document the documenting of the documentation. If you march in there with all of your records in some semblance of order and all of your proverbial ducks lined up, frequently the Internal Revenue man will flip through everything and order you out of his office. I do not know about anyone else, but if there is one place out of which I want to be thrown, it is the Internal Revenue Man's Office. He is not going to waste even half a day if he thinks that all that he will get from you is a few hundred dollars. He wants to see the guy with records in trash bags and shoe boxes with papers' falling out as the guy comes into the office, or no records at all. At that point, the dollar signs light up in the Internal Revenue Man's eyes and he dreams of his upcoming promotion at night.



Nooa said:


> Get your business stuff separated from personal & pay for everything with your business credit /debit card your gas, tolls, car washes, oil changes, phone, even lunch dinner, anything while working too.


I have one gasolene credit card and one Visa card that I use *only *for the cab and UberXmobile.



UberPissed said:


> My .02 - claim what you can substantiate - regardless of what you think will cause an audit. If you do get audited, you have the proof. The people that get bent over the barrel are the ones with no records.


This agrees with what I have heard from people who have been there. The Internal Revenue man might find a mistake, or two, here or there, but if you can prove that you spent it and for what, he is hard put to disallow the deduction.



Altima ATL said:


> Hmmmmm - New Uber Commercial:
> Make Tax free Income driving for Uber!


Due to everything's being on record, that is difficult. In fact, cab driving has been kicked out of the so-called "underground economy" because so many jurisdictions require credit card acceptance (or market forces have compelled it). Further, places such as New York and Washington have mandated the installation of fancy contraptions that allow the Authorities to see everything that is on your meter, be it cash or credit. In fact, I am convinced that one of the reasons, if not the main reason, that the Zone System went out here and His Exalted Supremacy, Adri-Amin Felonty mandated the installation of meters was so that the City could have figures that would allow them to collect more tax revenue from the cab drivers.

In fact, the city is starting to catch up with resident drivers who have been paying neither income nor Franchise Tax as well as suburban resident drivers who have not been paying their Franchise Tax. More than one driver has not been able to renew his hack licence over this. Some have managed to make deals, but a few have not.

* Add the usual disclaimer here, and to the entire post, that I am not a tax professional, thus I am not qualified to dispense tax advice. Anyone who wants tax advice should seek tax advice from a tax professional who is qualified to dispense tax advice.


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## Larry30040

dcsamurai said:


> An excessive loss is also audit bait as well.
> 
> I don't know how you guys who do it full time can make a living at it.


the first rule of business is ... IT'S A BUSINESS! ...

So I drive for 4 months part time. I put 10,000 miles on my car and made about $5000.00 to use round numbers. 
The government let's me deduct .57 cents a mile which comes to $5,700 which cancels the taxes on my uber income and I benefit from an additional $700.00 overall deduction on my taxes... Am I right about that? using only the standard deductions of course... 
The simple cost of operating my car for that 4 months was roughly $1000.00/fuel, $500.00/maintenance and misc. So I net only about $3,500.00.

because this is a second income stream, anything that helps lower my overall tax bill for the year is beneficial for the next couple of years because I have a car I own outright with relatively low mileage but when you consider the depreciation on the vehicle and the increasing maintenance costs and the overall cost of operating the vehicle over time... ... if this were my only income it would not sustain me... and maybe that's the point... maybe uber's goal is to generate a constant churn of part time drivers willing to drive their vehicles into the ground believing they are making money when they're not...

I imagine if I were driving a more high end vehicle and had a lot more maintenance costs I would itemize my deductions the way truck drivers do and maybe do a little better.. I'm not sure about that..

I think the trick is to drive a vehicle of least value that costs absolutely the least to operate and benefit as much as possible from the limited income but also the tax deduction per mile.

If I am driving a hybrid getting 50 miles to the gallon, that's .05/mile and I don't mind the extra miles on the vehicle because my deduction is .57/mile at the end of the year. If my cost of operating the vehicle comes in at about half the deduction I feel good... \

The mileage deduction is based on an average cost of operating a vehicle anywhere in the US. If your average operating costs are higher than the national average you're losing money. If they are lower, you're probably still losing money but at a slower rate...

Today I ordered uberx, a guy picked me up in a Lincoln town car... I told him, "dude! ... you're driving me 7 miles and you're gonna make about $4.00 on this trip. You drove 11 minutes to pick me up. Probably a total of 15 miles driven?... " he said, yeah, I know but Uber won't let me use this car for UberSelect because it's 1 year too old...

sorry for rambling.. but I'm old and it's part of my charm... I also repeat myself and fart in the bathtub when no one is looking...


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## 123dragon

Another Uber Driver said:


> In fact, I am convinced that one of the reasons, if not the main reason, that the Zone System went out here and His Exalted Supremacy, Adri-Amin Felonty mandated the installation of meters was so that the City could have figures that would allow them to collect more tax revenue from the cab drivers.


DC was such a 3rd world city when it came to cabs with zones.


Same fair could be 12 or 20 dollars depending on what a driver drove through while adding a minute to a ride.
No way any out of towner could figure out what it even meant since it was pre-smart phone.
A fleet of run down cabs
Having to sit next to random people as the driver would stop to try to pick up additional people.
It needed policy changes to modernize. Uber came a few years later to force the change. Back then only Uber Black existed it was a little more expensive the DC cabs but given the other issues people were still using it with high frequency.

If Fenty didn't do it I bet you Uber would've had a way faster adoption and taxis would of been scrambling to implement what Fenty had in place except they would've bled their customer base.


----------



## Larry30040

ChortlingCrison said:


> It's really a business? Gee thanks for enlightening me!. And here I thought it was a charity organization for the self..entitlement-challenged passengers.


As a student of sarcasm and a graduate of the smart-ass university of life I definitely appreciate your response. you're welcome!


----------



## Another Uber Driver

123dragon said:


> DC was such a 3rd world city when it came to cabs with zones.
> 
> 
> Same fair could be 12 or 20 dollars depending on what a driver drove through while adding a minute to a ride.
> No way any out of towner could figure out what it even meant since it was pre-smart phone.
> A fleet of run down cabs
> Having to sit next to random people as the driver would stop to try to pick up additional people.
> It needed policy changes to modernize. Uber came a few years later to force the change. Back then only Uber Black existed it was a little more expensive the DC cabs but given the other issues people were still using it with high frequency.
> 
> If Fenty didn't do it I bet you Uber would've had a way faster adoption and taxis would of been scrambling to implement what Fenty had in place except they would've bled their customer base.


It was urban myth, literally and figuratively, that the driver could jack up the fare if he "passed through more zones" than necessary. In addition to the Zone Map, there was a matrix that told you how many zones it was from ZoneX to ZoneY. From the Capitol to the Watergate was two zones. There was no way that the driver was permitted to charge you for more than two zones if all that you did was go from the Capitol to the Watergate. Now, if you told the driver to go from the Capitol to the Watergate but stop at the DuPont Plaza Hotel on the way, that was a different story and a different way of charging,

In reality, web capable telephones were common here early on. Early on the Taxicab Commission had a fare calculator on its website. The fare calculator was never incorrect on City fares (it was horrid on fares that left the city, though). I resolved more than one dispute on the street when my customer had a web-capable telephone.

The majority of the hoopty cabs were rental. The rental fleet owners were notorious for paying off at the test station. It was they that got it so that even private owners had to pay off or the inspectors would "find something wrong". Further, many of those hoopty cabs were driven by unlicenced drivers. The D.C. government knew that these illegals were out here and tolerated them. We tried to point out that the D.C. government could rake in huge revenues on summonses, but that fell on deaf ears. We tried to tell them that these illegals were effectively uninsured thus a hazard to the residents, visitors and people who did business in D.C. That fell on deaf ears. It was funny, when the D.C. government actually gave us a decent raise in 1996, guess wht happened? We sold the twelve year old Diplomats, Volares and Caprices and bought Lincoln Town Cars. That was the private owners. Guess what happened to the Volares, Diplomats and Caprices? The rental fleet owners and illegals bought them.

So when Uber Pool and Lyft Line has your sitting nest to random people that the application compels the driver to fetch it is allright, but when a cab driver did it, it was not?

The statement "It needed policy changes to modernise" is vague and not connected to anything in your arguments. Please clarify. Further, some of your chronology is either vague or misaligned. Please clarify.

The only change that Uber really forced was non cash payments. People were using Uber Black and paying four and five times the cab fare just to use a card. In fact, Uber users were so happy when the taxis came here. I have accepted cards in the cab since 1998. Of course, I was always a part-time driver and people did not know that I was out there.

Your last statement is not easy to comprehend. If you think that cabs would have been scrambling to p ut into place the 1989 cab rates to which Fenty had the meters set, you would be mistaken. If you think that the drivers and companies would have shut up at Fenty's ordering the illegals to be tolerated, you would be mistaken. If you think that Uber would have had cab companies asking for stepped up harassment of cab drivers, you would be mistaken. If you think that cab companies and drivers would have been "scrambling" to have a socialist fare cap, you would be mistaken. That is what Fenty did to us. He belongs in jail.

If you think that Uber could have forced a time and distance meter, that would not necessarily have happened. Yellow Cab had an electronic box that showed zone fares and a number of other things. Several people had presented decently functioning prototypes for zone meters. The Zone System could have survived. To be sure, there were some changes that were necessary, but a total scrapping was not the answer.

The only differences that I am noticing is the students and that what used to be slow taxi days are even slower. Still, the majority of my UberX customers are people who never would use a cab, anyhow. When Congress went on its protracted recess, I drove UberX more and the cab less. In fact, I drove the cab mostly to meet my contractual trip quota for Uber Taxi. The bonuses that Uber was paying did not hurt, either. Still, now that Congress and everyone else is back, I drive the cab more. I stay busy.


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## 123dragon

"It was urban myth, literally and figuratively, that the driver could jack up the fare if he "passed through more zones" than necessary."

I have lived in DC for 12 years. The first 2 years I worked in Chinatown taxing to Van Ness it took me 6 months to figure out the "cheaper route". I would constantly have drivers hitting me with 20 dollar fares and going through extra zones. I would say 3/4 were up charges sometime I would argue, it was a hassle. While there is a fare calculator driver needed a route or they would choose their own and use traffic or other reasons.

"The majority of the hoopty cabs were rental." Until 2012 I feel like the amount of times I was in a newer car was less then 5. I cabbed home from work a lot so maybe night was different then during the day.

"So when Uber Pool and Lyft Line has your sitting nest to random people that the application compels the driver to fetch it is allright, but when a cab driver did it, it was not?" Uber Pool is a choice, I have never Uber Pooled in my life. It was awesome at 3 in the morning having my cab stop every second to ask passengers where they are going with out asking me if it was ok. Also charging me and everyone else in the car full fare.

"It needed policy changes to modernize" - If you ignore the rates and just look at the meters and card acceptance those were big deals that drastically improved the cab experience. Before that it was like being in a 3rd world country where you were dealing with a driver that was a hustler and negotiating fares and rides. The taxi cab system did not feel like a city service that cared about people that lived in the city. The majority of drivers I met didn't even live in the city. That drove me nuts as someone that pays a ton of DC taxes.

I switched to full über black when it arrived mainly for the modern cars. I was one of the early adopters through the living social deal that sold an event ticket plus a free uber ride. Never got a single referral but over that year every single one of my local friends started utilizing the service. The biggest value add was morning flights and knowing a driver would show up. I missed two flights due to no show taxis and had to use shuttle service till uber existed. Part of this problem was living in Van Ness which had almost no cab traffic unless it was a busy time.

A lot of this is anecdotal so I am sure you can point out flaws. As someone that lives in DC I feel the taxi commission failed and Fenty and Uber brought a lot of change that made the service reliable (early morning flight pick up), consistent modern cars when ever I use the service, seamless never worrying about my wallet, and death of taxi pool. The only city pre-uber I ever felt as a customer that had it right was NYC.


----------



## Another Uber Driver

123dragon said:


> *1. *I have lived in DC for 12 years. The first 2 years I worked in Chinatown taxing to Van Ness it took me 6 months to figure out the "cheaper route". I would constantly have drivers hitting me with 20 dollar fares and going through extra zones. I would say 3/4 were up charges sometime I would argue, it was a hassle.
> 
> *2. *"The majority of the hoopty cabs were rental." Until 2012 I feel like the amount of times I was in a newer car was less then 5. I cabbed home from work a lot.
> 
> *3. *"So when Uber Pool and Lyft Line has your sitting nest to random people that the application compels the driver to fetch it is allright, but when a cab driver did it, it was not?" Uber Pool is a choice, I have never Uber Pooled in my life. It was awesome at 3 in the morning having my cab stop every second to ask passengers where they are going with out asking me if it was ok. Also charging me and everyone else in the car full fare.
> 
> *4. *"It needed policy changes to modernize" - If you ignore the rates and just look at the meters and card acceptance those were big deals that drastically improved the cab experience. Before that it was like being in a 3rd world country where you were dealing with a driver that was a hustler and negotiating fares and rides. The majority of drivers I met didn't even live in the city. That drove me nuts as someone that pays a ton of DC taxes.
> 
> *5. *I missed two flights due to no show taxis and had to use shuttle service till uber existed. Part of this problem was living in Van Ness which had almost no cab traffic unless it was a busy time.
> 
> *6. *As someone that lives in DC I feel the taxi commission failed and Fenty and Uber brought a lot of change that made the service reliable, consistent modern cars when ever I use the service, seamless never worrying about my wallet, and death of taxi pool


I have been hacking in this city longer than you have lived here. In addition, the period of time that I spent as a Company Official was longer than you have lived here.

1. There was no way, legally, that a driver could have charged you more than three zones from Chinatown to Van Ness. The last rate for that, on a street hail, was eleven dollars for the zones and a one dollar gasolene surcharge. There were additional charges for Rush Hour (one dollar) or calling (two dollars) additional passengers (one dollar fifty). Assuming that it was a street hail not in Rush Hour, and, you were going only Chinatown to Van Ness, with no stops or deviations, if that driver charged you any more than twelve dollars you should have complained to the Taxicab Commission. Routes, crossing extra zone lines had nothing to do with it. It was three zones and three zones, only, again, assuming point A to point B, only. By 2004, the Taxicab Commission was accepting complaints by e-Mail. The Urban Myth that they would not do anything is just that.

2. If you hailed Downtown, Chincatown, Capitol Hill in the daytime, the odds of your hailing a rental or illegal were pretty high. The D.C. Government knew about these illegals, but, chose to direct their "enforcement efforts" (READ: harassment) against legitimate drivers.

These illegals did persist after the meters, which our former Dear Revered Leader Kim il-Fenty set to 1989 cab rates. The presence of the illegals added to the 1989 cab rates created quite the hardship for many drivers/ More than a few of them lost their homes between 2008 and 2010.

3. Stopping for additional passengers at the driver's discretion became legal in 1973. The City Council allowed for it due to a gasolene crunch. I was living in Canada at the time, but, I learned about it when I became involved in the cab business, here. The Regulators set the rates. The Regulators dictated that full fares be charged for "shared riding". Remember, it is illegal to charge other than the prescribed fares.

In reality, you did have a choice not to share the cab. This _*IS*_, after all, America: In God We Trust, All Others Pay Cash (or American Express, where accepted--something few cabs did until 1996--it took me until 1998---even then, there were not many of us). There were a few hip passengers who knew how to get the cab to themselves.

4. I used to get the stuff from the passenger about how I "lived in the suburbs and blah-blah-blah". The look on their faces when I told them that I, like they, lived in the City and paid taxes to it, just as they did (plus a few more, that they did not necessarily pay) was worth paying to see.

Keep in mind that "negotiating" the fares was illegal.

The meters do not necessarily "improve the experience". Meters have their own set of problems. Some of us who had driven metered cabs elsewhere tried to explain that to Fenty, but he would not listen. That was no surprise, since, at the time, he was Allwise Dear Revered Leader. In fact, the whole thing obviously was written in haste so that it could be rammed down the collective throats of the public, providers and regulators. The whole circus that Swain staged down there at Fenty's orders was just that. Funny, though, Swain later tried to get us more money. At one point, suposedly, Fenty told Swain that if he mentioned it again, he would be looking for another job.

The cards were, in fact, a legitimate gripe. I saw a demand for them as far back as 1997. It took me until 1998 to find a provider. You really do need a wireless terminal for a cab. What made Uber as successful here, as it was, was, in fact, the cards. Once Uber introduced Uber Taxi, here, the Uber Black drivers lost all sorts of business in the City. People here do want the taxis, they simply wanted a convenient way to use them. I rose to meet the demands of my market in 1998. Sadly, most of my colleagues were balking at that even after October, 2013, when the City mandated plastic. Uber Taxi came here in February, 2013. My Taxi actually beat Uber Taxi here. It came in 2012, Summer. Hail-O came in Summer 2013. Hail-O and My Taxi both have since left North America.

5. North Cleveland Park (as well as other Upper Northwest neighbourhoods) used to go begging both at Airport Time and Morning Rush Hour (I used to dispatch, as well). It would get to the point where you were trashing everything except the airports and regulars, at times. The complaints about long waits, missed trains, busses and aeroplanes were legion---and legitimate. One problem was that if we told someone up front that we could not service him, we were subjected to regulatory sanctions and lawsuits. If an application tells you that it has no ride for you, nothing happens to the provider of that application, Y-E-T, at least. The problem was a shortage of cabs/drivers at those times. It did not help if you doubled up the drivers. The customers complained and you still did not have enough.

6. Few liked the shared riding in the cabs. Toward the end, when the rates were more comparable to the suburban rates, the gripe was legitimate. Once Uber showed up, it legitimised the illegals. Many of them parked their illegal cabs and started to drive Uber. To be sure, there were times when the wrong person got into the back seat of an illegal cab, figured out that it was illegal and made a stink. At that point, the police and hack inspectors would have to crack down on the illegals. It lasted only a short time, as a rule. After if blew over, the illegals simply returned. Once Uber showed up, the illegals thought "why risk it? What happens if they decide really to crack down? I can do this, instead" . This went double for UberX. This is one reason why complaints about drivers on UberX, here, at least, are so frequent. These illegals brought their bad habits with them to UberX.

The meters did not solve all of the problems. What was His Exalted Supremacy Adri-Amin *Felon*ty's real crime was his granting the drivers the privilege of working for 1989 cab rates and refusing to allow a gasolene surcharge when gasolene hit four dollars the gallon. In addition, there was the Socialist nineteen dollar fare cap within the City, abused horribly by the riding public. He hurt us in our purses and made it known to us that he meant us harm. I told him to his face in 2010, when he was campaigning, that the only vote of mine that he ever would get was a vote on a jury to convict him so that he could go to jail. I live in the neighbourhood where the current Mayor, his protege, grew up, so he liked campaigning there (he lost sixty-six, though, which always has been a bellwether precinct). He saw me on the street on my bicycle. He is an avid bicyclist, so mine, unusual as it is, caught his attention.

I would expect that you would get decent cars on Uber Black or Uber Taxi. Uber has kept up its standards for those. UberX is a toss of the dice. I have seen more than a few Uberhoopties and heard complaints from more than a few passengers about them. When UberX started, the cars were better, but so were the rates. The rates are now garbage, so you get more garbage cars. All of those illegals previously mentioned live in Virginia, mostly. Virginia is full of Buy Here/Pay Here used car lots that will finance anyone who can frost glass. Those lots are full of scratched and dented six to nine year old Camrys. Figure out the rest...........................

In addition, there is now an age limit on the cabs. Not that I favour that, mind you, but it is there. In addition, the only way that new licensees can own a cab is to buy a pure electric or an accessible. Fenty did not do this. It happened under Gray's watch when Linton was Chair. Gray did do a few things to help us, but he did us harm, as well.


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## SMH Uber

I read this entire thread, but no one has mentioned the SS and Medicare tax plus the self employment taxes. The total which amounts to abt 15%. Do you calculate those taxes on the total income made during the year or after you take deductions?


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## Older Chauffeur

SMH Uber said:


> I read this entire thread, but no one has mentioned the SS and Medicare tax plus the self employment taxes. The total which amounts to abt 15%. Do you calculate those taxes on the total income made during the year or after you take deductions?


Self employment taxes consist of Social Security and Medicare, aka FICA (Federal Insurance Contributions Act). FICA taxes are figured on your net profits, after deducting expenses, (like mileage, cell phone, etc.) on Schedule C. There is a threshold of $400, so if your profits exceed that number, you pay the FICA on all profit. If your profits are less than $400, you don't pay these taxes. You are paying the same 15.3% that regular employees and their employers split, but I think you get credit elsewhere in your return for the employer half.
Disclosure: I'm not a tax professional. My advice is worth what you pay for it.


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## rosco_78

UberHammer said:


> If you are paying taxes on Uber income, you're doing it wrong.


Best comment on this board....and accurate if you're doing this as a side gig.


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## uberdude73

I put all of my earnings into a high-income A-share investment fund earning roughly 9%. Come tax time, I pull out the taxes due for a small 1% fee, but over the year it's been working for me, growing steadily. I make my money work for me.


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## BEXi

Learn about deductions. More than likely there will be plenty enough to cover the taxes you will have to owe.


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## tesuber96

Don't you have to make at least $4000/month or higher to have to start owing taxes? Because when I grossed $2000 per month at my medical records job, I still got a nice tax return; never had to owe taxes.


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## Older Chauffeur

tesuber96 said:


> Don't you have to make at least $4000/month or higher to have to start owing taxes? Because when I grossed $2000 per month at my medical records job, I still got a nice tax return; never had to owe taxes.


You file a *tax return, *and if you have paid in more than the taxes you owe, you then get a *refund *of your money. This is the typical scenario when you are an employee. It's a pay-as-you-go system. Did you get back everything that was withheld, or was maybe some kept by the IRS for income taxes? You also paid the employee share of FICA taxes out of your pay checks. If you have enough withheld for your tax on that $4000 per month example, you won't owe anything extra. Or if you've overpaid, you get the difference back in the form of a refund.

When you work as an independent contractor, as in TNC driving, you will owe tax on your net profits, assuming you have any. If you net $400 or more, you will owe FICA taxes of approximately 15.3%, including both the employee and employer shares. If you are making good money driving, as some apparently do, you may owe quarterly estimated taxes, similar to the payroll withholding you had in your job. If you have a regular job and also Uber, your job witholding may cover your tax liability on the self employment income.

So you can't name a specific amount at which someone will owe taxes. Each person has different numbers of dependents, deductions, etc. Someone with a few dependents might not owe on that $48k per year.

Disclosure: I'm not a tax professional. You should see one at tax time.


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## tesuber96

Older Chauffeur said:


> Disclosure: I'm not a tax professional. You should see one at tax time.


Thanks. I will. Will I have to show all the times I went to the gas station? Should I keep all the receipts of my gas trips?


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## Driving and Driven

tesuber96 said:


> Thanks. I will. Will I have to show all the times I went to the gas station? Should I keep all the receipts of my gas trips?


Short answer: No.

Long answer: When you claim deductions, you can either claim fuel costs or you can claim mileage but you can't claim both. Claiming mileage will always provide greater deductions, hence, no need to keep up with those pesky gas receipts.


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## tesuber96

Driving and Driven said:


> Short answer: No.
> 
> Long answer: When you claim deductions, you can either claim fuel costs or you can claim mileage but you can't claim both. Claiming mileage will always provide greater deductions, hence, no need to keep up with those pesky gas receipts.


Thanks. And Uber has it all laid out as to how many miles I've driven while being online (working), correct?


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## Driving and Driven

tesuber96 said:


> Thanks. And Uber has it all laid out as to how many miles I've driven while being online (working), correct?


Actually, my recommendation is to get a mileage tracking app which you turn on and let run in the background while you drive for Uber. It is important not only to track your trip miles, but your deadhead miles as well. They are deductible. In my opinion, if you aren't tracking all your miles and expenses (by using a good tracker app) then you are throwing away good money.

Just my two cents.


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## Older Chauffeur

tesuber96 said:


> Thanks. I will. Will I have to show all the times I went to the gas station? Should I keep all the receipts of my gas trips?


Most drivers do better deducting the standard mileage rate allowed by the IRS, which is $0.54 per business mile. To do that, you need a contemporaneous mileage log. That means the starting and ending odometer readings (not the resettable trip meter) and date for each shift of driving. You can deduct the "dead" miles between paid pax miles if you keep proper records.

If you use the actual expense method, you still need the odometer readings to determine the percentage of business use of the vehicle, along with records/receipts for all operating costs.

Example: at $1.00 per mile, and 25% Uber share, you gross $75 for 100 miles of paid driving. Deduct $0.54 per mile and you have a profit of only $21 toward taxable income. That doesn't count the dead miles racked up to get the paid 100 miles.


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## tesuber96

Driving and Driven said:


> Actually, my recommendation is to get a mileage tracking app which you turn on and let run in the background while you drive for Uber. It is important not only to track your trip miles, but your deadhead miles as well. They are deductible. In my opinion, if you aren't tracking all your miles and expenses (by using a good tracker app) then you are throwing away good money.
> 
> Just my two cents.


Can you recommend a good mileage tracking app?


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## Driving and Driven

I use Stride Drive. It's free and it prints out a report at the end of the year for taxes. You can also enter all the other deductions into it like car washes and oil changes and amenities.


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## WBdriving

I like Stride Drive too but it's only on the Apple phones.


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