# Filed my taxes + uber 1099, here's what happened..



## CJ ASLAN

So last night I went in and got my taxes done. I have a w2 from work and this ugly 1099-K from Uber. Tax agent went ahead and filed a form 1040 (Schedule C) Profit or Loss from business form..

Let me give you a quick rundown of my Uber 1099:

Total "gross": $2889
Total rides: 216

Here's how my form looks and what expenses I wrote off. I did not take the standard deduction but he ended up just itemizing my expenses, which benefited me in the end.

















Basically, my expenses were "more" than my earnings as an independent contractor and I ended up paying $0 in taxes for Uber. He told me it would be better to just write off expenses than to take the standard mileage deduction. I didn't make a whole lot off Uber so this may not apply to everyone. What happens is if you show your business as a 'loss', you don't need to pay taxes in that situation, is what he said. I hope this helps shed some light on those who are still wondering how/what to do.

If anyone in the Los Angeles area (westside) needs a reputable tax agent, I can refer you his #. He charged me $60 to file my w2 and a 1099, with direct deposit. Fast & knowledgeable. Got me back a nice refund


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## Moofish

So, you didn't use the standard mileage deduction and chose to write off just the gas instead? No depreciation?


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## Roogy

$313 for waters and snacks? On just $2800 in gross fares? Gotta say that is some creative accounting.


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## CJ ASLAN

Moofish said:


> So, you didn't use the standard mileage deduction and chose to write off just the gas instead? No depreciation?


Not just the gas, car washes, phone, snacks/water..etc. It worked in my advantage to not use the mileage deduction. I don't care about the depreciation, I don't drive aimlessly looking for pings. My dead miles are pretty low and driving for uber, I put that into consideration. It is what it is and that's how I filed.



Roogy said:


> $313 for waters and snacks? On just $2800 in gross fares? Gotta say that is some creative accounting.


Your point? Had I changed that to $150 would that have made you feel better? Yes, creative indeed.


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## Kamran

what about tips and toll?


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## CJ ASLAN

It's not my fault I offer


Kamran said:


> what about tips and toll?


Why would I report a whopping $40 in tips accumulated in 4 months?

I drive in Los Angeles, I don't do tolls.


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## Walkersm

How did you take into account what were personal expenses vs. business expenses?

In other words was all that gas used for Uber only? How could you differentiate it?

IRS may want to know in an audit.


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## Bill Feit

Nice of you to share but not enough info to help average driver. I agree with other posters...think you will be in big trouble if audit. at $3.00 gal (not sure what you pay) you used 286 gallons of gas for only 216 trips??? No wonder you drank so much water! I will bet you did not keep track of actual miles, right? Share them if you did. I drove 18025 miles in 5 months!! about 6500 was trip miles.


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## CJ ASLAN

If an audit happens, I'll worry about it then. I highly doubt I will be audited. So while you all are so concerned for me, I will enjoy this shrimp fried rice and finish up my work.

But thank you for the insight.


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## Bill Feit

Hey..why not take a chance on an audit rather than do it right? Hope you start keeping track of mileage this year if you are going to continue driving. I have a spreadsheet I can share with you if interested. Also, you might want to use SherpaShare..


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## CJ ASLAN

Bill Feit said:


> Hey..why not take a chance on an audit rather than do it right? Hope you start keeping track of mileage this year if you are going to continue driving. I have a spreadsheet I can share with you if interested. Also, you might want to use SherpaShare...


I appreciate the concern and advice. However, I took my taxes to a tax agent. I did not punch in these numbers myself. This is what he put in and I was just sharing what he did. Hopefully I don't fall into the 0.7% of people that do get audited annually. If I do get audited, I will take any actions necessary to correct the matter, including getting my tax agent involved. This is why I did not want to do them myself as I have been doing my own taxes for 10+ years. At least I have something to fall back on, worst case scenario.

Can you email me the spreadsheet? [email protected]

Thank you sir.


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## Odiezilla

Ooooh, I completely overlooked the Safe Rider fees and commission for my expenses. Before I tack that on, is actually this a legitimate business expense? Because with over 1200 rides, that is a big ass chunk of change I could write off. Don't want to get in trouble for it, though.


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## IndyDriver

Yeah, they are commissions & fees paid for Uber's lead-generation service.


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## Tristan Zier

CJ ASLAN said:


> So last night I went in and got my taxes done. I have a w2 from work and this ugly 1099-K from Uber. Tax agent went ahead and filed a form 1040 (Schedule C) Profit or Loss from business form..
> 
> Let me give you a quick rundown of my Uber 1099:
> 
> Total "gross": $2889
> Total rides: 216
> 
> Here's how my form looks and what expenses I wrote off. I did not take the standard deduction but he ended up just itemizing my expenses, which benefited me in the end.
> 
> Basically, my expenses were "more" than my earnings as an independent contractor and I ended up paying $0 in taxes for Uber. He told me it would be better to just write off expenses than to take the standard mileage deduction. I didn't make a whole lot off Uber so this may not apply to everyone. What happens is if you show your business as a 'loss', you don't need to pay taxes in that situation, is what he said. I hope this helps shed some light on those who are still wondering how/what to do.
> 
> If anyone in the Los Angeles area (westside) needs a reputable tax agent, I can refer you his #. He charged me $60 to file my w2 and a 1099, with direct deposit. Fast & knowledgeable. Got me back a nice refund


I would be worried about this tax person, and would not recommend him. (I'm a former CPA, by the way.) I would also immediately ask him about a few very obvious issues:
1. The Standard Mileage Rate almost always works out in your favor. The only people who use Actual Cost Method are those who the IRS requires to (e.g. you own a fleet of cars). You are missing out on expense deductions included in the Standard Mileage Rate, like depreciation or maintenance (only about $0.30/mi of the rate is attributed to gas, so you basically only wrote off half of the expense you were allowed).
2. Even if you use Actual Costs Method, car expenses like Gas go under Line 9 (Car Expenses), not as an Other Expense. See the Schedule C instructions.
3. Even if you don't use the Standard Mileage Rate, you still need to track mileage and fill out Part IV. He did not fill this out.
4. You cannot write off 100% of your gas costs, which is what I assume he did here. You can only write off the business portion of that cost. Even if you use the car solely for business, it likely includes some commuting costs that you cannot write off.
5. If you get audited, you're on your own and have to get separate representation. There are all sorts of disclaimers that you signed away where he's not responsible for you filing a bad tax return.
6. Why are you writing off utilities and supplies for a driving service business?


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## CJ ASLAN

Tristan Zier said:


> I would be worried about this tax person, and would not recommend him. (I'm a former CPA, by the way.) I would also immediately ask him about a few very obvious issues:
> 1. The Standard Mileage Rate almost always works out in your favor. The only people who use Actual Cost Method are those who the IRS requires to (e.g. you own a fleet of cars). You are missing out on expense deductions included in the Standard Mileage Rate, like depreciation or maintenance (only about $0.30/mi of the rate is attributed to gas, so you basically only wrote off half of the expense you were allowed).
> 2. Even if you use Actual Costs Method, car expenses like Gas go under Line 9 (Car Expenses), not as an Other Expense. See the Schedule C instructions.
> 3. Even if you don't use the Standard Mileage Rate, you still need to track mileage and fill out Part IV. He did not fill this out.
> 4. You cannot write off 100% of your gas costs, which is what I assume he did here. You can only write off the business portion of that cost. Even if you use the car solely for business, it likely includes some commuting costs that you cannot write off.
> 5. If you get audited, you're on your own and have to get separate representation. There are all sorts of disclaimers that you signed away where he's not responsible for you filing a bad tax return.
> 6. Why are you writing off utilities and supplies for a driving service business?


I will talk to him about that..if and when they audit, when does that usually happen? If I receive my refund in a few weeks and it's not rejected, when will I know if it's actually a 'problem' ?


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## Tristan Zier

CJ ASLAN said:


> I will talk to him about that..if and when they audit, when does that usually happen? If I receive my refund in a few weeks and it's not rejected, when will I know if it's actually a 'problem' ?


The IRS has a 3 year period to audit you, or 6 years if you substantially underreported your income (meaning you underreported income by 25% or more). Since you reported $0, basically they could argue the 6 year period for any amount >$0. (Separate question is "will they", but the IRS is cracking down a lot on independent contractors.)


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## Gemgirlla

CJ ASLAN said:


> So last night I went in and got my taxes done. I have a w2 from work and this ugly 1099-K from Uber. Tax agent went ahead and filed a form 1040 (Schedule C) Profit or Loss from business form..
> 
> Let me give you a quick rundown of my Uber 1099:
> 
> Total "gross": $2889
> Total rides: 216
> 
> Here's how my form looks and what expenses I wrote off. I did not take the standard deduction but he ended up just itemizing my expenses, which benefited me in the end.
> View attachment 4910
> 
> View attachment 4911
> 
> 
> Basically, my expenses were "more" than my earnings as an independent contractor and I ended up paying $0 in taxes for Uber. He told me it would be better to just write off expenses than to take the standard mileage deduction. I didn't make a whole lot off Uber so this may not apply to everyone. What happens is if you show your business as a 'loss', you don't need to pay taxes in that situation, is what he said. I hope this helps shed some light on those who are still wondering how/what to do.
> 
> If anyone in the Los Angeles area (westside) needs a reputable tax agent, I can refer you his #. He charged me $60 to file my w2 and a 1099, with direct deposit. Fast & knowledgeable. Got me back a nice refund


Thanks! This is helpful!


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## WTF-uber

Tristan Zier said:


> I would be worried about this tax person, and would not recommend him. (I'm a former CPA, by the way.) I would also immediately ask him about a few very obvious issues:
> 1. The Standard Mileage Rate almost always works out in your favor. The only people who use Actual Cost Method are those who the IRS requires to (e.g. you own a fleet of cars). You are missing out on expense deductions included in the Standard Mileage Rate, like depreciation or maintenance (only about $0.30/mi of the rate is attributed to gas, so you basically only wrote off half of the expense you were allowed).
> 2. Even if you use Actual Costs Method, car expenses like Gas go under Line 9 (Car Expenses), not as an Other Expense. See the Schedule C instructions.
> 3. Even if you don't use the Standard Mileage Rate, you still need to track mileage and fill out Part IV. He did not fill this out.
> 4. You cannot write off 100% of your gas costs, which is what I assume he did here. You can only write off the business portion of that cost. Even if you use the car solely for business, it likely includes some commuting costs that you cannot write off.
> 5. If you get audited, you're on your own and have to get separate representation. There are all sorts of disclaimers that you signed away where he's not responsible for you filing a bad tax return.
> 6. Why are you writing off utilities and supplies for a driving service business?


What about taking Section 179 deduction?


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## Fuzzyelvis

CJ ASLAN said:


> I will talk to him about that..if and when they audit, when does that usually happen? If I receive my refund in a few weeks and it's not rejected, when will I know if it's actually a 'problem' ?


FYI I am not a CPA but have been self employed in the past delivering newspapers and magazines and hot shot and also pizza (as an employee). I started off doing this in 1991 and was too cheap to pay an accountant. So I had to learn it all by reading (paper back then!) all the rules per the IRS. I can tell you that the numbers you have seem way out there to me and I agree completely with the poster who is a CPA that there are some very questionable things going on with your return.

Having said that my brief foray into hot shot delivery years ago did show a loss (I decided quickly it was not profitable due to the high mileage for the money). But I kept meticulous records of mileage. I can certainly see where ubering could show a very low or no profit but if you are in that category you better be able to back it up. I don't understand how anyone is doing this and not keeping track of mileage quite honestly. It's the biggest expense and if disallowed would really increase the taxable income. I'm not sure what your tax guy is thinking if you haven't been told to do that. He sounds like the accountant version of a quack.


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## Sydney Uber

Roogy said:


> $313 for waters and snacks? On just $2800 in gross fares? Gotta say that is some creative accounting.


It was Evian, of course each rider was gonna have one!


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## UberOne

I just took the standard .56/mile deduction since my Prius sips gas at 6¢/mile, and I knew my maintenance costs were not high enough to warrant itemized deductions.


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## Goober

People....

If you form an LLC you can make many more deductions...such as daily entertainment... if under $75.00/day without a receipt!

Also, using a Tax Guy or filing late greatly reduces the chances of an audit.


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## SCdave

CJ...thanks for giving this a try. Really. Just because we are, well, ripping you, doesn't mean we don't appreciate it. All a learning experience. We even got some additional good info from the CPA formally know as Tristan Zar...wait, that should have been Tristan Zar formally known as a CPA.

Really, thanks for sharing but do consider what Tristan Zar has outlined and check out his website at Zen99 (yes, I'm plugging it since he is actually contributing).

Maybe he will offer you some "offline" help for free if you let him use your case as a great "example", with your name/SS blacked out of course, on his Website? Of course he would have to throw in many disclaimers bla bla bla to cover his "not a CPA anymore butt"


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## CJ ASLAN

Gemgirlla said:


> Thanks! This is helpful!


Apparently I am a ****** because my tax agent filed this way for me. You're welcome, for what it's worth. I highly doubt I will be audited, and if that happens, so be it. My return has been sent in and I can only hope with the cluster **** of new filings from all these drivers, the IRS will hopefully overlook my obvious horrocious return.


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## CJ ASLAN

SCdave said:


> CJ...thanks for giving this a try. Really. Just because we are, well, ripping you, doesn't mean we don't appreciate. It. All a learning experience. We even got some additional good info from the CPA formally know as Tristan Zar...wait, that should have been Tristan Zar formally known as a CPA.
> 
> Really, thanks for sharing but do consider what Tristan Zar has outlined and check out his website at Zen99 (yes, I'm plugging it since he is actually contributing).
> 
> Maybe he will offer you some "offline" help for free if you let him use your case as a great "example", with your name/SS blacked out of course, on his Website? Of course he would have to throw in many disclaimers bla bla bla to cover his "not a CPA anymore butt"


You're welcome, for what it's worth. I was just trying to share my tax experience, as I've never had to file any business taxes or whatever. This is my first time. I guess you live and you learn. If by any chance I am audited, then I deserved to be. I specifically asked my tax agent "How much did I pay in taxes for Uber?" he responded, I reported it as a loss so you don't pay taxes on that. Was I going to argue with someone who's been in the tax business for 20+ years with nearly a five star rating on yelp? Probably not. I figured, this is his line of field, he knows best. 
There are millions of bs returns filed where everything is not 100% peachy, I guess I'll have to wait and hope I don't fall into the 0.7% of annually audits. So take it for what it's worth, use my experience as tools to help you when you file. Don't make the "big" mistakes I have, apparently. But I appreciate all the feedback and welcome any trolls or people here to bash, makes me all warm inside knowing I mean that much to you.


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## Tristan Zier

WTF-uber said:


> What about taking Section 179 deduction?


Generally, you don't want to take a Section 179 deduction. Here's some info on why (taken from our Guide to Ridesharing Taxes at ********************/guides/ridesharing):

*Section 179 Deduction*
A Section 179 deduction allows you to write off the full cost of a new car in the year you purchased it for business. Due to all of the restrictions, plus the additional calculations and tracking required, it's often a lot easier to skip the Section 179 deduction and just use the Standard Mileage Rate. The deduction primarily makes sense for business owners who have a large fleet of cars (at which point you should be having an accountant do all this for you).

However, we'll go over some details on it for those who are interested. There are certain restrictions related to this deduction:


You must own the car and have purchased it; you cannot have received it as a gift or inheritance. You also cannot have purchased it from a "related party" (typically, a family member).
You must use the car more than 50% of the time for business. Your total deduction cannot exceed the percentage of the time you use it for business (e.g. for a $10,000 car used 80% of the time for business, you can only write off up to $8,000).
Your deduction cannot cause you to go from a business profit to a business loss. If it does, you have to "carry over" the remaining amount to future years. (For example, if you made $5,000, had no other expenses, and put a $10,000 car into use claiming the Section 179 deduction, you can only write off up to $5,000 this year.)
For SUVs, you can only write off up to $25,000.
The car itself doesn't have to be new-it just has to be new to you. However, you must take the deduction the year the car is "ready and available" for use. So if this is the first year you are using it for business, you can't take the deduction if you purchased it last year.

Also of note: if you take a Section 179 deduction, you are effectively recognizing all of the depreciation on the car in the first year. Thus, you cannot use the Standard Mileage Rate that year or in any future years, since the rate includes depreciation (you would effectively be double counting depreciation-which the IRS doesn't like).

Most importantly, if you stop using the car for business (or use it less than 50% of the time for business) or sell the car before 5 years pass, then you are subject to a "Section 179 recapture". This means that the expense you previously wrote off could become income in the year you sell the car - meaning your tax bill will be artificially high that year. For all of these reasons, we recommend sticking with the Standard Mileage Rate.


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## Tristan Zier

CJ ASLAN said:


> But I appreciate all the feedback and welcome any trolls or people here to bash, makes me all warm inside knowing I mean that much to you.


Definitely didn't mean to make you feel bad! I feel bad for you / other Uber drivers (hence the desire to start Zen99). A lot of you are first time contractors, and Uber doesn't help you understand what the requirements are (they legally aren't allowed to help), and it's frustrating to see other tax professionals so blatantly making mistakes because they want to be able to charge a cheaper price.


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## Tristan Zier

Goober said:


> People....
> 
> If you form an LLC you can make many more deductions...such as daily entertainment... if under $75.00/day without a receipt!
> 
> Also, using a Tax Guy or filing late greatly reduces the chances of an audit.


Not as simple as that. An LLC has other reporting requirements, and can cost a lot in some states. (For example, it's ~$800/year in California, which doesn't make sense if you're grossing $2K in fares.)

Also, while there are some tricky tax things you can do with an LLC, you basically need a very good accountant to do them right. That means you're going to be paying an accountant a lot, which will probably offset any benefit they help you find. You also can't just write off things like daily entertainment - not sure where you heard that from.

Using a tax professional or filing late definitely do not reduce your chances of an audit, no idea where you heard this from. I don't know the specifics because I don't work at the IRS, but the IRS's system flags things like do you have contractor work (not things like did you use a tax professional), and filing late means you're already breaking the rules so are at a higher likelihood of doing other shady things.


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## Odiezilla

I have a follow-up question: I assume the $1.00/$1.50 "Ride and Safety" fee is not something we can write off, because it's not something we see on the dollar amount per ride, it's charged directly to the rider. Only the 20% commission is correct to claim. Yes/No?


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## SCdave

Tristan Zier said:


> Definitely didn't mean to make you feel bad! I feel bad for you / other Uber drivers (hence the desire to start Zen99). A lot of you are first time contractors, and Uber doesn't help you understand what the requirements are (they legally aren't allowed to help), and it's frustrating to see other tax professionals so blatantly making mistakes because they want to be able to charge a cheaper price.


Soooo...is it best in this case that the OP (CJ Aslan, the Tax filer) amend his tax return? If so, should he do this himself, get a new accountant (tax professional) or go back to the one who "helped him" to have amended tax return done for free?

And I guess this may be another post at Zen99 re "How to amend your tax return"


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## Tristan Zier

Odiezilla said:


> I have a follow-up question: I assume the $1.00/$1.50 "Ride and Safety" fee is not something we can write off, because it's not something we see on the dollar amount per ride, it's charged directly to the rider. Only the 20% commission is correct to claim. Yes/No?


For Uber, they include the Safe Rides Fee in the amount they processed for you, so it's included in the gross amount on your 1099-K. That means you record it as both an earning and equal offsetting expense (so it nets to $0 and doesn't affect your taxes or tax bracket). 
For Lyft, they did not include the Trust and Safety Fee in the amount they processed for you (could just be due to the specifics of how they bill the customer), so you do not include that as an earning or an expense.


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## SCdave

Tristan Zier said:


> Generally, you don't want to take a Section 179 deduction. Here's some info on why (taken from our Guide to Ridesharing Taxes at ********************/guides/ridesharing):
> 
> *Section 179 Deduction*
> A Section 179 deduction allows you to write off the full cost of a new car in the year you purchased it for business. Due to all of the restrictions, plus the additional calculations and tracking required, it's often a lot easier to skip the Section 179 deduction and just use the Standard Mileage Rate. The deduction primarily makes sense for business owners who have a large fleet of cars (at which point you should be having an accountant do all this for you).
> 
> However, we'll go over some details on it for those who are interested. There are certain restrictions related to this deduction:
> 
> 
> You must own the car and have purchased it; you cannot have received it as a gift or inheritance. You also cannot have purchased it from a "related party" (typically, a family member).
> You must use the car more than 50% of the time for business. Your total deduction cannot exceed the percentage of the time you use it for business (e.g. for a $10,000 car used 80% of the time for business, you can only write off up to $8,000).
> Your deduction cannot cause you to go from a business profit to a business loss. If it does, you have to "carry over" the remaining amount to future years. (For example, if you made $5,000, had no other expenses, and put a $10,000 car into use claiming the Section 179 deduction, you can only write off up to $5,000 this year.)
> For SUVs, you can only write off up to $25,000.
> The car itself doesn't have to be new-it just has to be new to you. However, you must take the deduction the year the car is "ready and available" for use. So if this is the first year you are using it for business, you can't take the deduction if you purchased it last year.
> 
> Also of note: if you take a Section 179 deduction, you are effectively recognizing all of the depreciation on the car in the first year. Thus, you cannot use the Standard Mileage Rate that year or in any future years, since the rate includes depreciation (you would effectively be double counting depreciation-which the IRS doesn't like).
> 
> Most importantly, if you stop using the car for business (or use it less than 50% of the time for business) or sell the car before 5 years pass, then you are subject to a "Section 179 recapture". This means that the expense you previously wrote off could become income in the year you sell the car - meaning your tax bill will be artificially high that year. For all of these reasons, we recommend sticking with the Standard Mileage Rate.


Short Version - Take the IRS Mileage Deduction and don't "F*ck with the Section 179 Deduction unless you are using a CPA.

* I am not a tax professional and this is just my opinion


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## Tristan Zier

SCdave said:


> Soooo...is it best in this case that the OP (CJ Aslan, the Tax filer) amend his tax return? If so, should he do this himself, get a new accountant (tax professional) or go back to the one who "helped him" to have amended tax return done for free?
> 
> And I guess this may be another post at Zen99 re "How to amend your tax return"


I would at least question him on all the questions I raised and get some answers. Maybe he has reasons for what he did - I don't know because I don't know the specifics. I just know that things didn't look right at first glance.


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## Tristan Zier

SCdave said:


> Short Version - Take the IRS Mileage Deduction and don't "F*ck with the Section 179 Deduction unless you are using a CPA.
> 
> * I am not a tax professional and this is just my opinion


Hah, good summary!


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## Devindl

Walkersm said:


> How did you take into account what were personal expenses vs. business expenses?
> 
> In other words was all that gas used for Uber only? How could you differentiate it?
> 
> IRS may want to know in an audit.


Not sure how he did it, but it's easy to figure out if you're keeping the records that you should. Keep track of your car's mileage for the year - all of it. Business and personal. Of course, you're also keeping track of the miles driven for Uber. Lets say you clock 30,000 miles in a year and 20000 of those are business related. That's 66.6% of your mileage that's for business. So, whatever you spent in gas for the entire year, you can deduct 66.6% of it in this case.


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## IndyDriver

Devindl said:


> Not sure how he did it, but it's easy to figure out if you're keeping the records that you should. Keep track of your car's mileage for the year - all of it. Business and personal. Of course, you're also keeping track of the miles driven for Uber. Lets say you clock 30,000 miles in a year and 20000 of those are business related. That's 66.6% of your mileage that's for business. So, whatever you spent in gas for the entire year, you can deduct 66.6% of it in this case.


A lot easier (and more financially beneficial) to just track mileage and use the standard IRS deduction for business miles. That accounts for gas, maintenance and depreciation. Only reason you need your % business vs personal is if you are going to deduct interest expense, I believe.


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## UberHammer

If I was the IRS, I would flag your gas costs being 30% of the fares.


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## WTF-uber

Tristan Zier said:


> Generally, you don't want to take a Section 179 deduction. Here's some info on why (taken from our Guide to Ridesharing Taxes a
> 
> *Section 179 Deduction*
> A Section 179 deduction allows you to write off the full cost of a new car in the year you purchased it for business. Due to all of the restrictions, plus the additional calculations and tracking required, it's often a lot easier to skip the Section 179 deduction and just use the Standard Mileage Rate. The deduction primarily makes sense for business owners who have a large fleet of cars (at which point you should be having an accountant do all this for you).
> 
> However, we'll go over some details on it for those who are interested. There are certain restrictions related to this deduction:
> 
> 
> You must own the car and have purchased it; you cannot have received it as a gift or inheritance. You also cannot have purchased it from a "related party" (typically, a family member).
> You must use the car more than 50% of the time for business. Your total deduction cannot exceed the percentage of the time you use it for business (e.g. for a $10,000 car used 80% of the time for business, you can only write off up to $8,000).
> Your deduction cannot cause you to go from a business profit to a business loss. If it does, you have to "carry over" the remaining amount to future years. (For example, if you made $5,000, had no other expenses, and put a $10,000 car into use claiming the Section 179 deduction, you can only write off up to $5,000 this year.)
> For SUVs, you can only write off up to $25,000.
> The car itself doesn't have to be new-it just has to be new to you. However, you must take the deduction the year the car is "ready and available" for use. So if this is the first year you are using it for business, you can't take the deduction if you purchased it last year.
> 
> Also of note: if you take a Section 179 deduction, you are effectively recognizing all of the depreciation on the car in the first year. Thus, you cannot use the Standard Mileage Rate that year or in any future years, since the rate includes depreciation (you would effectively be double counting depreciation-which the IRS doesn't like).
> 
> Most importantly, if you stop using the car for business (or use it less than 50% of the time for business) or sell the car before 5 years pass, then you are subject to a "Section 179 recapture". This means that the expense you previously wrote off could become income in the year you sell the car - meaning your tax bill will be artificially high that year. For all of these reasons, we recommend sticking with the Standard Mileage Rate.


Thank you for the clarification.


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## CJ ASLAN

UberHammer said:


> If I was the IRS, I would flag your gas costs being 30% of the fares.


Thankfully you don't work for the IRS...whew!


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## 20yearsdriving

CJ ASLAN said:


> So last night I went in and got my taxes done. I have a w2 from work and this ugly 1099-K from Uber. Tax agent went ahead and filed a form 1040 (Schedule C) Profit or Loss from business form..
> 
> Let me give you a quick rundown of my Uber 1099:
> 
> Total "gross": $2889
> Total rides: 216
> 
> Here's how my form looks and what expenses I wrote off. I did not take the standard deduction but he ended up just itemizing my expenses, which benefited me in the end.
> View attachment 4910
> 
> View attachment 4911
> 
> 
> Basically, my expenses were "more" than my earnings as an independent contractor and I ended up paying $0 in taxes for Uber. He told me it would be better to just write off expenses than to take the standard mileage deduction. I didn't make a whole lot off Uber so this may not apply to everyone. What happens is if you show your business as a 'loss', you don't need to pay taxes in that situation, is what he said. I hope this helps shed some light on those who are still wondering how/what to do.
> 
> If anyone in the Los Angeles area (westside) needs a reputable tax agent, I can refer you his #. He charged me $60 to file my w2 and a 1099, with direct deposit. Fast & knowledgeable. Got me back a nice refund


Leave this guy alone, good Job if only they knew how many legal "loophole" are available for us they would vomit ( yes legal look @ GE)


----------



## CJ ASLAN

20yearsdriving said:


> Leave this guy alone, good Job if only they knew how many legal "loophole" are available for us they would vomit ( yes legal look @ GE)


hahaha thank you sir!


----------



## Derekd213

Interesting fillings, you may want to amend your return to recalculate your deductions.

If you're considering taking the standard mileage deduction, its 57.5 cents for this tax season.


----------



## UberXking

Tristan Zier said:


> I would be worried about this tax person, and would not recommend him. (I'm a former CPA, by the way.) I would also immediately ask him about a few very obvious issues:
> 1. The Standard Mileage Rate almost always works out in your favor. The only people who use Actual Cost Method are those who the IRS requires to (e.g. you own a fleet of cars). You are missing out on expense deductions included in the Standard Mileage Rate, like depreciation or maintenance (only about $0.30/mi of the rate is attributed to gas, so you basically only wrote off half of the expense you were allowed).
> 2. Even if you use Actual Costs Method, car expenses like Gas go under Line 9 (Car Expenses), not as an Other Expense. See the Schedule C instructions.
> 3. Even if you don't use the Standard Mileage Rate, you still need to track mileage and fill out Part IV. He did not fill this out.
> 4. You cannot write off 100% of your gas costs, which is what I assume he did here. You can only write off the business portion of that cost. Even if you use the car solely for business, it likely includes some commuting costs that you cannot write off.
> 5. If you get audited, you're on your own and have to get separate representation. There are all sorts of disclaimers that you signed away where he's not responsible for you filing a bad tax return.
> 6. Why are you writing off utilities and supplies for a driving service business?


----------



## UberXking

Disregard my stupid heads up post
This is why I drive da car


I'm not a CPA so I read before I make statements
There's too much miss information
Specific line item in the tax code . says cars for hire can Not use the standard mileage deduction.
But the law was changed


----------



## frndthDuvel

CJ ASLAN said:


> Not just the gas, car washes, phone, snacks/water..etc. It worked in my advantage to not use the mileage deduction. I don't care about the depre.ciation, I don't drive aimlessly looking for pings. My dead miles are pretty low and driving for uber, I put that into consideration. It is what it is and that's how I filed.
> 
> Your point? Had I changed that to $150 would that have made you feel better? Yes, creative indeed.


Less than 1.50 per trip. Who is to say it was not Avian and Dove Chocolate.
I plan on writing off some "entertainment expense" as well. Talked to a few friends or bartender over a beer about the referral program? Sounds business related to me. LOL


----------



## Older Chauffeur

UberXking said:


> I'm not a CPA so I read before I make statements
> There's too much miss information
> Specific line item in the tax code . says cars for hire can Not use the standard mileage deduction.


It used to be that livery cars were not allowed the standard mileage deduction, but that has changed. Keep reading.


----------



## Simon

Lol... you lost money driving for Uber.


----------



## Lakeside

Odiezilla said:


> Ooooh, I completely overlooked the Safe Rider fees and commission for my expenses. Before I tack that on, is actually this a legitimate business expense? Because with over 1200 rides, that is a big ass chunk of change I could write off. Don't want to get in trouble for it, though.


Yes, you can definitely write off the safe driver fees and Uber's commission. It's like selling stock and the broker gets a commission - same thing.


----------



## scrurbscrud

UberXking said:


> I'm not a CPA so I read before I make statements
> There's too much miss information
> Specific line item in the tax code . says cars for hire can Not use the standard mileage deduction.


Not true.

*"You can elect to use the standard mileage rate if you used a car for hire (such as a taxi)* unless the standard mileage rate is otherwise not allowed, as discussed above."

http://www.irs.gov/publications/p463/ch04.html


----------



## UberXking

Older Chauffeur said:


> It used to be that livery cars were not allowed the standard mileage deduction, but that has changed. Keep reading.


Whoops !!!!!!,,,,,,,,but proves my point
Thanks for letting me know and making my year. Drove over 60K last year. 
Correct tax info http://www.irs.gov/publications/p463/ch04.html


----------



## Older Chauffeur

That's why I use a CPA!


----------



## MrsUberJax

I have been working as an independent contractor for years.. and your dude is a lazy ****. I would not recommend using expenses over miles, ever. The irs makes it simple with the mileage...that is the given, for you to take on the expenses - you are putting up your own red flag. Do you have receipts for all of that stuff? Man oh man, just do the work. I have a little book that I carry with me in the car I just list mileage in and mileage out, so every day, I have a record of how many miles I drove for the job. BTW, all businesses generally operate at a loss for the first three years.... I wouldn't worry about that being a red flag.. but the deductions.. they are always a target. Fire him, try again... I would.


----------



## UberPissed

CJ ASLAN said:


> I appreciate the concern and advice. However, I took my taxes to a tax agent. I did not punch in these numbers myself. This is what he put in and I was just sharing what he did. Hopefully I don't fall into the 0.7% of people that do get audited annually. If I do get audited, I will take any actions necessary to correct the matter, including getting my tax agent involved. This is why I did not want to do them myself as I have been doing my own taxes for 10+ years. At least I have something to fall back on, worst case scenario.
> 
> Can you email me the spreadsheet? [email protected]
> 
> Thank you sir.


If they audit you, you can't claim reliance on your return preparer. Also, the audit rate for Schedule C filers is much higher - 4-5%, and much higher if it's Sch C + EITC. But I think despite the numbers, you are probably ok.


----------



## CJ ASLAN

Just to let you all know...I got my tax return with no hiccups. I don't expect to get audited if anyone needs $20 I'd be more than glad to lend it to you. 

take care wise people..


----------



## Lyft4uDC

if turbotax is correct, im going to owe about $200. well, beats getting a refund


----------



## Big Machine

CJ ASLAN said:


> Just to let you all know...I got my tax return with no hiccups. I don't expect to get audited if anyone needs $20 I'd be more than glad to lend it to you.
> 
> take care wise people..


LOL because tax audits are instant, right?


----------



## CJ ASLAN

Big Machine said:


> LOL because tax audits are instant, right?


Because I realllllllllllllllllllllllllllllllllllllllllllllllllllly don't care.


----------



## john djjjoe

CJ ASLAN said:


> If an audit happens, I'll worry about it then. I highly doubt I will be audited. So while you all are so concerned for me, I will enjoy this shrimp fried rice and finish up my work.
> 
> But thank you for the insight.


Would strongly suggest you take this down before someone against uber sees it, turns you into a cause célèbre as to why all Uber drivers are evil/evading taxes to make it easier for you to cheat the hardworking unions out of their passengers. Management will use everything in its power to figure out based on what you have up here who you are and turn you over to the IRS while pushing the agency to make an example out of you.

It's not the IRS you have to hide from, it's Uber being pushed by its desire to avoid being associated with something (illegal) that you did.


----------



## CowboyMC

Goober said:


> People....
> 
> If you form an LLC you can make many more deductions...such as daily entertainment... if under $75.00/day without a receipt!
> 
> Also, using a Tax Guy or filing late greatly reduces the chances of an audit.


Any deduction you can take under a single person LLC, you can take on Sch C. If you have to entertain a client you can deduct this on both. I doubt, as a Uber driver, you would have this expense. You do need to keep receipt and write on the back of it, who attended and what was the business reason.


----------



## CowboyMC

But you maybe able to take Section 179 deduction on that new smartphone you bought to get rid of the $10 rental fee for Uber's iPone. I did.


----------



## CJ ASLAN

john djjjoe said:


> Would strongly suggest you take this down before someone against uber sees it, turns you into a cause célèbre as to why all Uber drivers are evil/evading taxes to make it easier for you to cheat the hardworking unions out of their passengers. Management will use everything in its power to figure out based on what you have up here who you are and turn you over to the IRS while pushing the agency to make an example out of you.
> 
> It's not the IRS you have to hide from, it's Uber being pushed by its desire to avoid being associated with something (illegal) that you did.


I lost money driving for uber. This will stay here til 2018 so I can chime back in later.


----------



## Older Chauffeur

IndyDriver said:


> A lot easier (and more financially beneficial) to just track mileage and use the standard IRS deduction for business miles. That accounts for gas, maintenance and depreciation. Only reason you need your % business vs personal is if you are going to deduct interest expense, I believe.


In states like CA, where you can deduct the value-based portion of your auto license fees, that deduction is divided between your Schedule C and Schedule A, based on the percentage of business to personal miles. I think the worksheets take you through this. However, as always, I defer to Tristan.


----------



## Sami

The mileages on a car of a Uber driver, is it the miles that a rider was in the car and given a ride to or the total miles, including the dead miles, meaning from the mileage that you left home and the mileage that you got back home? Which is accepted to IRS for mileage driver in a year?


----------



## Older Chauffeur

Sami said:


> The mileages on a car of a Uber driver, is it the miles that a rider was in the car and given a ride to or the total miles, including the dead miles, meaning from the mileage that you left home and the mileage that you got back home? Which is accepted to IRS for mileage driver in a year?


As long as you have a mileage log, the IRS will allow the dead miles. If in your last sentence you are asking if there is a limit to what they will accept, I don't know of any, but you would need the log to back up your claim. There has been some discussionon another thread about whether the mileage to and from home is deductible. The consensus seems to be that if the app is on, so are the miles.


----------



## IndyDriver

Sami said:


> The mileages on a car of a Uber driver, is it the miles that a rider was in the car and given a ride to or the total miles, including the dead miles, meaning from the mileage that you left home and the mileage that you got back home? Which is accepted to IRS for mileage driver in a year?


search this forum. This has been covered ad nauseam.


----------



## 49matrix

Tristan Zier said:


> Generally, you don't want to take a Section 179 deduction. Here's some info on why (taken from our Guide to Ridesharing Taxes at ********************/guides/ridesharing):
> 
> *Section 179 Deduction*
> A Section 179 deduction allows you to write off the full cost of a new car in the year you purchased it for business. Due to all of the restrictions, plus the additional calculations and tracking required, it's often a lot easier to skip the Section 179 deduction and just use the Standard Mileage Rate. The deduction primarily makes sense for business owners who have a large fleet of cars (at which point you should be having an accountant do all this for you).
> 
> However, we'll go over some details on it for those who are interested. There are certain restrictions related to this deduction:
> 
> 
> You must own the car and have purchased it; you cannot have received it as a gift or inheritance. You also cannot have purchased it from a "related party" (typically, a family member).
> You must use the car more than 50% of the time for business. Your total deduction cannot exceed the percentage of the time you use it for business (e.g. for a $10,000 car used 80% of the time for business, you can only write off up to $8,000).
> Your deduction cannot cause you to go from a business profit to a business loss. If it does, you have to "carry over" the remaining amount to future years. (For example, if you made $5,000, had no other expenses, and put a $10,000 car into use claiming the Section 179 deduction, you can only write off up to $5,000 this year.)
> For SUVs, you can only write off up to $25,000.
> The car itself doesn't have to be new-it just has to be new to you. However, you must take the deduction the year the car is "ready and available" for use. So if this is the first year you are using it for business, you can't take the deduction if you purchased it last year.
> 
> Also of note: if you take a Section 179 deduction, you are effectively recognizing all of the depreciation on the car in the first year. Thus, you cannot use the Standard Mileage Rate that year or in any future years, since the rate includes depreciation (you would effectively be double counting depreciation-which the IRS doesn't like).
> 
> Most importantly, if you stop using the car for business (or use it less than 50% of the time for business) or sell the car before 5 years pass, then you are subject to a "Section 179 recapture". This means that the expense you previously wrote off could become income in the year you sell the car - meaning your tax bill will be artificially high that year. For all of these reasons, we recommend sticking with the Standard Mileage Rate.


Yes, Standard Mileage Rate is the best way to go. Who would want to spend more hours than you work creating spreadsheets with receipts and all that crap!
Seriously though, what about a leased vehicle? I can get a new 4 door hatchback for about $150/month with no prepayment and pay a little extra for mileage over 12K.


----------



## Ziggy

Just picked up TripLog - GPS Mileage Log Tracker for iPhone (they have Android too) ... it starts automatically when you drive more than 5MPH to track the mileage on my trips for tax purposes ... but I'm also going to use it to keep track of my trips since Uber app Trip History has been flaky the past few days. It also tracks all your expenses. I like this far better than the SherpaShare that someone recommended earlier in this thread; because SherpaShare is web only (not very useful from the car) and TripLog is mobile & web based. You can check it out here - https://triplogmileage.com/IRS-Uber-tax-deduction.html


----------



## UberTaxPro

Roogy said:


> $313 for waters and snacks? On just $2800 in gross fares? Gotta say that is some creative accounting.


yes, and the gas expense looks a little high unless he drives a hummer


----------



## UberTaxPro

CJ ASLAN said:


> I appreciate the concern and advice. However, I took my taxes to a tax agent. I did not punch in these numbers myself. This is what he put in and I was just sharing what he did. Hopefully I don't fall into the 0.7% of people that do get audited annually. If I do get audited, I will take any actions necessary to correct the matter, including getting my tax agent involved. This is why I did not want to do them myself as I have been doing my own taxes for 10+ years. At least I have something to fall back on, worst case scenario.
> 
> Can you email me the spreadsheet? [email protected]
> 
> Thank you sir.


even though your tax agent did your taxes, your the one responsible for any errors or omissions


----------



## Casuale Haberdasher

IndyDriver said:


> search this forum. This has been covered ad nauseam.


POST # 65 /@IndyDriver: Haven't seen

your Avatar since BEFORE I served my
7 Days in UPNFJail. PM me when it's
Korn-venient. LYFT ON DUDE!


----------



## Markisonit

The standard mileage deduction (which I used ALL of the mileage that I clocked when the app was ON and ready for ride requests) worked in my favor. It showed that driving for Uber was a money loser for me.
Onward and upward I will continue down my money losing path.


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## Raider

I made $13000 last year, and i gave 1200 rides, total fare miles were 6500..what's my worst case scenario here fellas...please help


----------



## Bill Feit

Raider said:


> I made $13000 last year, and i gave 1200 rides, total fare miles were 6500..what's my worst case scenario here fellas...please help


You are not providing enough info to help...$13K gross or your net? you tell trip miles but what is your total miles driven...deductable at .56/mile...you can also deduct uber fees, and other costs they have on your 1099K. You may have other deductables. Do you have other income? All this affects your tax. Best go to a tax preparer or download Turbo Tax and do it yourself. Deadline for filing is still 4/15


----------



## Markisonit

Bill Feit said:


> You are not providing enough info to help...$13K gross or your net? you tell trip miles but what is your total miles driven...deductable at .56/mile...you can also deduct uber fees, and other costs they have on your 1099K. You may have other deductables. Do you have other income? All this affects your tax. Best go to a tax preparer or download Turbo Tax and do it yourself. Deadline for filing is still 4/15


I went to HR Block. After doing my taxes for 40 years, I decided I needed an experts help. Glad I did.


----------



## Yelle

CJ ASLAN said:


> So last night I went in and got my taxes done. I have a w2 from work and this ugly 1099-K from Uber. Tax agent went ahead and filed a form 1040 (Schedule C) Profit or Loss from business form..
> 
> Let me give you a quick rundown of my Uber 1099:
> 
> Total "gross": $2889
> Total rides: 216
> 
> Here's how my form looks and what expenses I wrote off. I did not take the standard deduction but he ended up just itemizing my expenses, which benefited me in the end.
> View attachment 4910
> 
> View attachment 4911
> 
> 
> Basically, my expenses were "more" than my earnings as an independent contractor and I ended up paying $0 in taxes for Uber. He told me it would be better to just write off expenses than to take the standard mileage deduction. I didn't make a whole lot off Uber so this may not apply to everyone. What happens is if you show your business as a 'loss', you don't need to pay taxes in that situation, is what he said. I hope this helps shed some light on those who are still wondering how/what to do.
> 
> If anyone in the Los Angeles area (westside) needs a reputable tax agent, I can refer you his #. He charged me $60 to file my w2 and a 1099, with direct deposit. Fast & knowledgeable. Got me back a nice refund


----------



## Yelle

Hi there I've been reading your posts and live on the west side la. i drive uber partime. I'm stressed out about doing my w2 and 1099 taxes it seems like you had a pretty decent tax person can you send me their contact info?


----------



## OrlUberOffDriver

Raider said:


> I made $13000 last year, and i gave 1200 rides, total fare miles were 6500..what's my worst case scenario here fellas...please help


Your numbers are a duplicate of mine, except I had way less rides, 657.
My CPA got me to owe $184.


----------



## Raider

OrlUberOffDriver said:


> Your numbers are a duplicate of mine, except I had way less rides, 657.
> My CPA got me to owe $184.


sir please tell me everything! that is freaking awesome


----------



## Fuzzyelvis

Markisonit said:


> I went to HR Block. After doing my taxes for 40 years, I decided I needed an experts help. Glad I did.


Since when are they experts? They hire and train seasonal workers who often don't know what they're doing.


----------



## Markisonit

Fuzzyelvis said:


> Since when are they experts? They hire and train seasonal workers who often don't know what they're doing.


This one rookie I had was a 32 year veteran of tax stuff.


----------



## LUXYRIDE

CJ ASLAN said:


> So last night I went in and got my taxes done. I have a w2 from work and this ugly 1099-K from Uber. Tax agent went ahead and filed a form 1040 (Schedule C) Profit or Loss from business form..
> 
> Let me give you a quick rundown of my Uber 1099:
> 
> Total "gross": $2889
> Total rides: 216
> 
> Here's how my form looks and what expenses I wrote off. I did not take the standard deduction but he ended up just itemizing my expenses, which benefited me in the end.


I am a bit confused. The 1099 that Uber gives you reflects WHAT THEY PAID you, not your gross income. The $216 they took in Safe Rider Fee is added into the rate and taken back out which cancels itself. You can't claim that. And, as far as the Uber Charges of $560, you can't write off Uber's commission, as that figure of $560 is not in your 1099k, which is NET. You would have had a bigger deduction if you had taken mileage at $.57.5 per mile. I am afraid you will be subject to an audit. Hopefully, you won't.


----------



## Devindl

Actually that's not correct. It would make sense for them to have done it this way, but no. Look carefully and you'll see that uber included the fees as income paid to us and we needed to deduct them since we paid them and didn't earn that income. So if you deducted the uber commission and the safe rides fee that was the correct way to do it. If you don't deduct them, you will be paying taxes on money that you didn't earn. This has been the issue that has been confusing people and I don't know why uber did it that way, but they did. Probably to avoid looking like an employer and pretending to be just a credit card processor is what many seem to be thinking... Refer to the 1099 summary they sent you that you can access in the driver portal and there's a convenient breakdown of how much you paid in fees to help you do this.


----------



## LUXYRIDE

Devindl said:


> Actually that's not correct. It would make sense for them to have done it this way, but no. Look carefully and you'll see that uber included the fees as income paid to us and we needed to deduct them since we paid them and didn't earn that income. So if you deducted the uber commission and the safe rides fee that was the correct way to do it. If you don't deduct them, you will be paying taxes on money that you didn't earn. This has been the issue that has been confusing people and I don't know why uber did it that way, but they did. Probably to avoid looking like an employer and pretending to be just a credit card processor is what many seem to be thinking... Refer to the 1099 summary they sent you that you can access in the driver portal and there's a convenient breakdown of how much you paid in fees to help you do this.


Uber takes it's commission (20%) from the fare BEFORE the $1 safe driver fee is added.


----------



## 49matrix

CJ ASLAN said:


> So last night I went in and got my taxes done. I have a w2 from work and this ugly 1099-K from Uber. Tax agent went ahead and filed a form 1040 (Schedule C) Profit or Loss from business form..
> 
> Let me give you a quick rundown of my Uber 1099:
> 
> Total "gross": $2889
> Total rides: 216
> 
> Here's how my form looks and what expenses I wrote off. I did not take the standard deduction but he ended up just itemizing my expenses, which benefited me in the end.
> View attachment 4910
> 
> View attachment 4911
> 
> 
> Basically, my expenses were "more" than my earnings as an independent contractor and I ended up paying $0 in taxes for Uber. He told me it would be better to just write off expenses than to take the standard mileage deduction. I didn't make a whole lot off Uber so this may not apply to everyone. What happens is if you show your business as a 'loss', you don't need to pay taxes in that situation, is what he said. I hope this helps shed some light on those who are still wondering how/what to do.
> 
> If anyone in the Los Angeles area (westside) needs a reputable tax agent, I can refer you his #. He charged me $60 to file my w2 and a 1099, with direct deposit. Fast & knowledgeable. Got me back a nice refund


I do have to question the way your return was prepared but you are so far under the radar with respect to total earnings no-one at the IRS is going to haul you in for an audit. Having said that, the IRS has yet to come to terms with Uber and Lyft so they may start to audit some drivers and they will probably be the guys who do it full time. It sounds like you, like me, drive part time as a supplement to retirement income and as such it's a great job. However, I have always taken the standard mileage and it has always worked in my favor. I do my own taxes and have used the same program for about 10 years without any problems. Do yourself a favor and buy one of those Business Mileage Log Books from Staples, about $5, and use it faithfully every time you drive, both work and personal usage. I made the investment of getting For Hire plates for my car and the $1.5m liability insurance and as a result Uber does not take the Saferide fee out. In addition I can freely pick up and drop off at the airport without fear of being ticketed or hassled by the airport Gestapo!


----------



## Tristan Zier

49matrix said:


> I do have to question the way your return was prepared but you are so far under the radar with respect to total earnings no-one at the IRS is going to haul you in for an audit. Having said that, the IRS has yet to come to terms with Uber and Lyft so they may start to audit some drivers and they will probably be the guys who do it full time. It sounds like you, like me, drive part time as a supplement to retirement income and as such it's a great job. However, I have always taken the standard mileage and it has always worked in my favor. I do my own taxes and have used the same program for about 10 years without any problems. Do yourself a favor and buy one of those Business Mileage Log Books from Staples, about $5, and use it faithfully every time you drive, both work and personal usage. I made the investment of getting For Hire plates for my car and the $1.5m liability insurance and as a result Uber does not take the Saferide fee out. In addition I can freely pick up and drop off at the airport without fear of being ticketed or hassled by the airport Gestapo!


Just to dispel any myths: the IRS does not only go after big names. They go after a statistical sample across all spectrums, including those who have a business loss (that normally increases risk of an audit) or independent contractor income (also increases risk of an audit). Think of it this way: if everyone knew the IRS never went after those who made below $X, then everyone would just cook their books to be below that amount. The IRS takes a statistical sample so that people who don't make much are also up for an audit.


----------



## LUXYRIDE

How come you didn't bundle Uber's 20% commission in with the safe rider fee? Also, did you deduct the taxes that are subtracted from the gross fare? I am wondering if I should amend my return, as I did not deduct the commission or the safe rider fee thinking that the 1099 was reflecting WHAT I WAS PAID, not the gross. Stupid me.


----------



## CowboyMC

LUXYRIDE said:


> How come you didn't bundle Uber's 20% commission in with the safe rider fee? Also, did you deduct the taxes that are subtracted from the gross fare? I am wondering if I should amend my return, as I did not deduct the commission or the safe rider fee thinking that the 1099 was reflecting WHAT I WAS PAID, not the gross. Stupid me.


Go to "payment statements" screen on Uber, click on the blue box labeled "2014 tax information". It's in the upper right hand corner. After that, click on blue box that says "View your summary". That will show you all your expenses you should put on tax return along with your other expenses. The deductible expenses shown include, tolls ( use theirs if you didn't keep track), split-fare fees, safe rider fees, device subscription, Uber fee, and mileage (use theirs if you did not keep track, but they only report part of your mileage.)


----------



## LUXYRIDE

CowboyMC said:


> Go to "payment statements" screen on Uber, click on the blue box labeled "2014 tax information". It's in the upper right hand corner. After that, click on blue box that says "View your summary". That will show you all your expenses you should put on tax return along with your other expenses. The deductible expenses shown include, tolls ( use theirs if you didn't keep track), split-fare fees, safe rider fees, device subscription, Uber fee, and mileage (use theirs if you did not keep track, but they only report part of your mileage.)


Thank you, CowboyMC! This is the first time I've seen this! I had the 1099s but had not seen this summary. It is GREAT! I am just not sure where to put the sales tax? As a regular expense?


----------



## CowboyMC

LUXYRIDE said:


> Thank you, CowboyMC! This is the first time I've seen this! I had the 1099s but had not seen this summary. It is GREAT! I am just not sure where to put the sales tax? As a regular expense?


Yes, sales tax is a regular expense. Here in NJ, we do not have sales tax on rides. I guess your state does.


----------



## Sydney Uber

Tristan Zier said:


> Just to dispel any myths: the IRS does not only go after big names. They go after a statistical sample across all spectrums, including those who have a business loss (that normally increases risk of an audit) or independent contractor income (also increases risk of an audit). Think of it this way: if everyone knew the IRS never went after those who made below $X, then everyone would just cook their books to be below that amount. The IRS takes a statistical sample so that people who don't make much are also up for an audit.


Over in OZ, our IRS (ATO) call what you describe as establishing Industry profiles. That can only be accurate with a wide range of sample contributors.

I have an ATO client who has confirmed that they will have access to drivers logged on hours to build a profile with the other major variables being Gross Takings, mileage, deductions and depreciation.

Once a profile is established any variance outside the ranges will attract further investigation. They also have little time for businesses and individuals who are able to "prove" they've worked at a loss for consecutive years


----------



## JeffP64FL

CJ ASLAN said:


> So last night I went in and got my taxes done. I have a w2 from work and this ugly 1099-K from Uber. Tax agent went ahead and filed a form 1040 (Schedule C) Profit or Loss from business form..
> 
> Let me give you a quick rundown of my Uber 1099:
> 
> Total "gross": $2889
> Total rides: 216
> 
> Here's how my form looks and what expenses I wrote off. I did not take the standard deduction but he ended up just itemizing my expenses, which benefited me in the end.
> View attachment 4910
> 
> View attachment 4911
> 
> 
> Basically, my expenses were "more" than my earnings as an independent contractor and I ended up paying $0 in taxes for Uber. He told me it would be better to just write off expenses than to take the standard mileage deduction. I didn't make a whole lot off Uber so this may not apply to everyone. What happens is if you show your business as a 'loss', you don't need to pay taxes in that situation, is what he said. I hope this helps shed some light on those who are still wondering how/what to do.
> 
> If anyone in the Los Angeles area (westside) needs a reputable tax agent, I can refer you his #. He charged me $60 to file my w2 and a 1099, with direct deposit. Fast & knowledgeable. Got me back a nice refund


If you had claimed the mileage deduction, you still could have ALSO deducted the snacks, drinks, and washes and netted a big loss. I plan on using mileage plus write off my investment in dashcam, seat covers, phone chargers, water, and washes. Mileage is for gas, insurance, depreciation, repairs, registration fees.


----------



## StarzykCPA

JeffP64FL said:


> If you had claimed the mileage deduction, you still could have ALSO deducted the snacks, drinks, and washes and netted a big loss. I plan on using mileage plus write off my investment in dashcam, seat covers, phone chargers, water, and washes. Mileage is for gas, insurance, depreciation, repairs, registration fees.


Old post but useful insight. You are correct. Oil changes are implied under repairs (as this is another common big one).


----------



## UberPissed

I know it has been said before, but if you have an older, somewhat fuel efficient vehicle, you want to take mileage. If you have a new, lower fuel efficient vehicle, tax actual expenses and a 179 depreciation deduction.

Also, you conflated two different issues -_ "I did not take the standard deduction but he ended up just itemizing my expenses, which benefited me in the end" Standard deduction has nothing to do with a Schedule C. _

Standard v. Itemizing is on a schedule A and is available for all taxpayers, if applicable.


----------



## Ubercentralnj

StarzykCPA said:


> Old post but useful insight. You are correct. Oil changes are implied under repairs (as this is another common big one).


StarzykCPA, what is your position on deducting for miles without a passenger? Currently I'm being conservative and am just planning to claim the miles I had moving passengers i.e. the miles that Uber tracks. I'm nervous to claim more, but feel that I'm just hurting my bottom line, possibly for no reason other than my tax law ignorance. Can you help?


----------



## StarzykCPA

Ubercentralnj said:


> StarzykCPA, what is your position on deducting for miles without a passenger? Currently I'm being conservative and am just planning to claim the miles I had moving passengers i.e. the miles that Uber tracks. I'm nervous to claim more, but feel that I'm just hurting my bottom line, possibly for no reason other than my tax law ignorance. Can you help?


Thanks for the question. I've been meaning to write an article on this subject.

If you're on the job and intending to work, then those miles are deductible. Don't short-change yourself.


----------



## forqalso

CowboyMC said:


> Go to "payment statements" screen on Uber, click on the blue box labeled "2014 tax information". It's in the upper right hand corner. After that, click on blue box that says "View your summary". That will show you all your expenses you should put on tax return along with your other expenses. The deductible expenses shown include, tolls ( use theirs if you didn't keep track), split-fare fees, safe rider fees, device subscription, Uber fee, and mileage (use theirs if you did not keep track, but they only report part of your mileage.)


Using the toll total on the "2014 tax information" is a good start, but if you're like me, you'll have paid tolls without PAX while driving for Uber. Don't forget these tolls can be included as they are not paid during a commute to work.


----------



## William1964

Snacks waters and safe rider fees.

Nice...

Next time you tell the story you should include that you were deactivated took a course for $100 and was reactivated to explain your low income


----------



## DMV guy

I just started driving for Uber for two months. I make about $400 - $500 per week. I have not written down my mileage daily that I drove. How can I account for this on taxes. And at this rate is mileage deduction best or itemize for taxes


----------



## CowboyMC

DMV guy said:


> I just started driving for Uber for two months. I make about $400 - $500 per week. I have not written down my mileage daily that I drove. How can I account for this on taxes. And at this rate is mileage deduction best or itemize for taxes


Reconstruct your mileage log. Use UBER travel information to help. Should also record total car mileage for the year. If you have an inexpensive car use standard mileage rate.


----------



## redd38

I plan to use the standard mileage deduction. Can I also deduct the safe rider fee and Uber's %20? Or can I only do that if I'm doing an itemized, actual-cost deduction?


----------



## forqalso

redd38 said:


> I plan to use the standard mileage deduction. Can I also deduct the safe rider fee and Uber's %20? Or can I only do that if I'm doing an itemized, actual-cost deduction?


You can use the standard mileage deduction and also deduct srf and uber's 20%. The mileage deduction only covers automobile costs and not any other business expenses.


----------



## DMV guy

Forgive my ignorance but what does the mileage rate mean and do for taxes. Is that calculation how much is credited off my gross income made with Uber? Please explain anyone in the know.. for example I'm on pace for 12,000 Uber miles driven this year. How does gas mileage work and what does it do to my taxes?


----------



## Older Chauffeur

DMV guy said:


> Forgive my ignorance but what does the mileage rate mean and do for taxes. Is that calculation how much is credited off my gross income made with Uber? Please explain anyone in the know.. for example I'm on pace for 12,000 Uber miles driven this year. How does gas mileage work and what does it do to my taxes?


You can deduct the IRS standard mileage rate for all miles accrued for business use on Schedule C. The rate is adjusted annually, and for 2015 is 57.5 cents per mile. You will need a mileage log indicating the date and use of the vehicle. You can include "dead miles" when you don't have passengers but are otherwise available.
You should consult a tax professional, which I am not.


----------



## DMV guy

Thank you.


----------



## jdillinge

Lyft4uDC said:


> if turbotax is correct, im going to owe about $200. well, beats getting a refund


May I ask what version of turbotax you used? Thank you!


----------



## jdillinge

Can you write off a back massage or chiropractic work due to sitting for long hours?


----------



## joeactuary

jdillinge said:


> Can you write off a back massage or chiropractic work due to sitting for long hours?


No, not a direct work expense. Not on Schedule C. You can deduct chiropractic work and even a back massage on Schedule A as a medical expense if your physician prescribes it for medical purpose. But only if you itemize and only the medical expenses that exceed 10% (7.5% if older than 65) of your adjusted income.


----------



## kevin dang

hi can you message me his info..im in texas can i scan all my taxes and email him and he do it? i cant find any 1 in texas that charge $60 for my tax


----------



## Skinny1

jdillinge said:


> May I ask what version of turbotax you used? Thank you!


Did mine last night had to use the $80 version for the schedule C. Someone said the hard copy deluxe has schedule C but I'm not going to go try and find out.


----------



## Older Chauffeur

jdillinge said:


> May I ask what version of turbotax you used? Thank you!


You didn't direct this to me, but I can tell you that TurboTax Deluxe CD version has everything you need, including Schedule C for business profit and loss. TT website explains that you need the CD version, as the online Deluxe version does not have Scedule C, you have to use Home and Business online to get C.
I bought my TT Deluxe at Costco in late December for $39.95 after a $10 instant rebate.


----------



## Older Chauffeur

Skinny1 said:


> Did mine last night had to use the $80 version for the schedule C. Someone said the hard copy deluxe has schedule C but I'm not going to go try and find out.


So we're you using their online filing program, or downloading it, as opposed to a CD? Just curious, thanks.


----------



## Skinny1

Online


----------



## ashley4444444

CJ ASLAN said:


> So last night I went in and got my taxes done. I have a w2 from work and this ugly 1099-K from Uber. Tax agent went ahead and filed a form 1040 (Schedule C) Profit or Loss from business form..
> 
> Let me give you a quick rundown of my Uber 1099:
> 
> Total "gross": $2889
> Total rides: 216
> 
> Here's how my form looks and what expenses I wrote off. I did not take the standard deduction but he ended up just itemizing my expenses, which benefited me in the end.
> View attachment 4910
> 
> View attachment 4911
> 
> 
> Basically, my expenses were "more" than my earnings as an independent contractor and I ended up paying $0 in taxes for Uber. He told me it would be better to just write off expenses than to take the standard mileage deduction. I didn't make a whole lot off Uber so this may not apply to everyone. What happens is if you show your business as a 'loss', you don't need to pay taxes in that situation, is what he said. I hope this helps shed some light on those who are still wondering how/what to do.
> 
> If anyone in the Los Angeles area (westside) needs a reputable tax agent, I can refer you his #. He charged me $60 to file my w2 and a 1099, with direct deposit. Fast & knowledgeable. Got me back a nice refund


PLEASE HELP ME! I WOULD LIKE YOUR TAX AGENTS NUMBER PLEASE!


----------



## StarzykCPA

ashley4444444 said:


> PLEASE HELP ME! I WOULD LIKE YOUR TAX AGENTS NUMBER PLEASE!


Well I'm not that agent, but I can definitely help you with your taxes. Message me or check out the thread in my signature for more details.


----------



## kpost49428

Can u help me fill out taxes on filing for uber


----------



## Older Chauffeur

kpost49428 said:


> Can u help me fill out taxes on filing for uber


See post #114, just above yours.


----------



## Coffeekeepsmedriving

do not trust this guy! he lives in Virginia and wants to do mine and i live in new jersey..
lol


----------



## StarzykCPA

Coffeekeepsmedriving said:


> do not trust this guy! he lives in Virginia and wants to do mine and i live in new jersey..
> lol


haha yes I can work with you regardless of where you live - thanks to the internet.

As a CPA, mobility laws allow me to work with clients anywhere in the country.

I use a secure electronic document exchange service. For those without a scanner, you can upload photos taken straight from your phone


----------



## therides

Coffeekeepsmedriving said:


> do not trust this guy! he lives in Virginia and wants to do mine and i live in new jersey..
> lol


That's silly unless you're joking. He doesn't need to live in your state to file taxes in that state on your behalf


----------



## UberTaxPro

theridesharecpa.com said:


> That's silly unless you're joking. He doesn't need to live in your state to file taxes in that state on your behalf


He does need to live in your state to represent you if your audited I believe.


----------



## StarzykCPA

UberTaxPro said:


> He does need to live in your state to represent you if your audited I believe.


Nope. I actually can have the audit transferred to where I reside.


----------



## Caroline O'Donovan

This sounds so frustrating! I'm looking for drivers to talk to about the unusual challenges of doing your taxes as an Uber driver. If you're interested in chatting, you can get me at caroline period odonovan at buzzfeed period com. Thanks!


----------



## Caroline O'Donovan

CJ ASLAN said:


> Apparently I am a ****** because my tax agent filed this way for me. You're welcome, for what it's worth. I highly doubt I will be audited, and if that happens, so be it. My return has been sent in and I can only hope with the cluster &%[email protected] of new filings from all these drivers, the IRS will hopefully overlook my obvious horrocious return.


This sounds so frustrating! I'm looking for drivers to talk to about the unusual challenges of doing your taxes as an Uber driver. If you're interested in chatting, you can get me at caroline period odonovan at buzzfeed period com. Thanks!


----------



## UberTaxPro

StarzykCPA said:


> Nope. I actually can have the audit transferred to where I reside.


True, the *taxpayer* can request the audit to be transferred but the transfer cannot be SOLELY for the convenience of the taxpayer's representative.


----------



## StarzykCPA

UberTaxPro said:


> True, the *taxpayer* can request the audit to be transferred but the transfer cannot be SOLELY for the convenience of the taxpayer's representative.


It's case by case but I haven't seen it declined. Individual audits tend to be correspondence audits anyways.


----------



## Coffeekeepsmedriving

StarzykCPA said:


> haha yes I can work with you regardless of where you live - thanks to the internet.
> 
> As a CPA, mobility laws allow me to work with clients anywhere in the country.
> 
> I use a secure electronic document exchange service. For those without a scanner, you can upload photos taken straight from your phone


I just had my taxes done at HR Block..they needed a lot of paper work and asked a lot of questions.. You also have to sign forms etc.
don't be taken for a scam and go to Hr block and they will save you money not loss it.


----------



## Coffeekeepsmedriving

StarzykCPA said:


> haha yes I can work with you regardless of where you live - thanks to the internet.
> 
> As a CPA, mobility laws allow me to work with clients anywhere in the country.
> 
> I use a secure electronic document exchange service. For those without a scanner, you can upload photos taken straight from your phone


Your taking a big chance not going to the proper place to do taxes..if not your likelihood of audit is very high.


----------



## StarzykCPA

Coffeekeepsmedriving said:


> I just had my taxes done at HR Block..they needed a lot of paper work and asked a lot of questions.. You also have to sign forms etc.
> don't be taken for a scam and go to Hr block and they will save you money not loss it.





Coffeekeepsmedriving said:


> Your taking a big chance not going to the proper place to do taxes..if not your likelihood of audit is very high.


Well I hoped you were kidding at first, too, but it seems you are not. So I will have to respectfully disagree with your comments.

I've already helped users on this forum (I can not say who, as that is confidential). Yes - I ask questions, need paperwork and require signatures too.

Where you get your taxes done, or even if you do them yourself, has no bearing on the likelihood of an audit. If your tax return is done properly, this shouldn't matter anyways.

We are in agreement that you should go to the proper place to do your taxes. H&R Block works fine for many. There are several unscrupulous, unregulated tax preparers that attempt to take advantage of their clients and promise things to them that are simply not true. I am not one of those people.


----------



## Coffeekeepsmedriving

Tell it to your clients


----------



## mblatch

CJ ASLAN said:


> So last night I went in and got my taxes done. I have a w2 from work and this ugly 1099-K from Uber. Tax agent went ahead and filed a form 1040 (Schedule C) Profit or Loss from business form..
> 
> Let me give you a quick rundown of my Uber 1099:
> 
> Total "gross": $2889
> Total rides: 216
> 
> Here's how my form looks and what expenses I wrote off. I did not take the standard deduction but he ended up just itemizing my expenses, which benefited me in the end.
> View attachment 4910
> 
> View attachment 4911
> 
> 
> Basically, my expenses were "more" than my earnings as an independent contractor and I ended up paying $0 in taxes for Uber. He told me it would be better to just write off expenses than to take the standard mileage deduction. I didn't make a whole lot off Uber so this may not apply to everyone. What happens is if you show your business as a 'loss', you don't need to pay taxes in that situation, is what he said. I hope this helps shed some light on those who are still wondering how/what to do.
> 
> If anyone in the Los Angeles area (westside) needs a reputable tax agent, I can refer you his #. He charged me $60 to file my w2 and a 1099, with direct deposit. Fast & knowledgeable. Got me back a nice refund


Thanks for sharing and that will be a major help when I file mine this weekend! Some other deductions that I will be taking are depreciation, interest on my auto loan, my license title and registration, maintenance, my car insurance (which increased when I began driving for uber), and my AAA membership. Basically anything that you use for your business can be deductible as long as you keep good records. The miles driven to get a car wash (for business purposes) can be deducted and the car wash itself can also be deducted. If you are diligent and keep good documentation, there should be no worries. Depending on whether you own or lease your vehicle, these can change.


----------



## money time

CJ ASLAN said:


> So last night I went in and got my taxes done. I have a w2 from work and this ugly 1099-K from Uber. Tax agent went ahead and filed a form 1040 (Schedule C) Profit or Loss from business form..
> 
> Let me give you a quick rundown of my Uber 1099:
> 
> Total "gross": $2889
> Total rides: 216
> 
> Here's how my form looks and what expenses I wrote off. I did not take the standard deduction but he ended up just itemizing my expenses, which benefited me in the end.
> View attachment 4910
> 
> View attachment 4911
> 
> 
> Basically, my expenses were "more" than my earnings as an independent contractor and I ended up paying $0 in taxes for Uber. He told me it would be better to just write off expenses than to take the standard mileage deduction. I didn't make a whole lot off Uber so this may not apply to everyone. What happens is if you show your business as a 'loss', you don't need to pay taxes in that situation, is what he said. I hope this helps shed some light on those who are still wondering how/what to do.
> 
> If anyone in the Los Angeles area (westside) needs a reputable tax agent, I can refer you his #. He charged me $60 to file my w2 and a 1099, with direct deposit. Fast & knowledgeable. Got me back a nice refund


60$ for all of uber filing?
Can i have his name? Adress? Hr block wants 300$ from me.
Can you help me here?


----------



## money time

UberOne said:


> I just took the standard .56/mile deduction since my Prius sips gas at 6¢/mile, and I knew my maintenance costs were not high enough to warrant itemized deductions.


Well may i ask you how many miles did you reporet driving for uber.
Whats the recomended miles for a full time ubering.
I made almost $60k last year. I am trying to get it down to about $15k net income and i drove over 50,000 mi,
How should i go with that?


----------



## UberTaxPro

money time said:


> Well may i ask you how many miles did you reporet driving for uber.
> Whats the recomended miles for a full time ubering.
> I made almost $60k last year. I am trying to get it down to about $15k net income and i drove over 50,000 mi,
> How should i go with that?


The recommended miles are the business miles you actually recorded in your mileage log.


----------



## money time

UberTaxPro said:


> The recommended miles are the business miles you actually recorded in your mileage log.


Well you know most of us cut corners .
just wonder if reporting 50kM on 2700 trips makes scense for a full time driver. This way i can go with standard 57¢ and get 29,000$ total write off


----------



## therides

money time said:


> Well you know most of us cut corners .
> just wonder if reporting 50kM on 2700 trips makes scense for a full time driver. This way i can go with standard 57¢ and get 29,000$ total write off


You need to keep mileage log to keep track of your business miles. Otherwise you can use miles provided by Uber, yes it's less than actual but this is all you have to prove to IRS that your miles are supported. Cutting corners will make you pay twice in the long run...


----------



## money time

theridesharecpa.com said:


> You need to keep mileage log to keep track of your business miles. Otherwise you can use miles provided by Uber, yes it's less than actual but this is all you have to prove to IRS that your miles are supported. Cutting corners will make you pay twice in the long run...


big problem for me and many full time drivers. I dont bother to take the time..i might have photos when i bought the car of the odometer reading or have copy of DMV milage statenent a year ago? But again who knows about irs.


----------



## UberTaxPro

money time said:


> big problem for me and many full time drivers. I dont bother to take the time..i might have photos when i bought the car of the odometer reading or have copy of DMV milage statenent a year ago? But again who knows about irs.


I've heard stories about the IRS using DMV records, emission records etc... to verify (or question) peoples mileage claims. They can get their hands on any public document you may have put your mileage and date on.


----------



## Older Chauffeur

UberTaxPro said:


> I've heard stories about the IRS using DMV records, emission records etc... to verify (or question) peoples mileage claims. They can get their hands on any public document you may have put your mileage and date on.


I think insurers have similar access. Several years ago in a discussion about my annual mileage, a rep from AAA quoted the odometer reading from a smog test on my vehicle. Orwell was right!


----------



## namir

Can I get ur tax guys info cj Aslan?


----------



## tohunt4me

Older Chauffeur said:


> I think insurers have similar access. Several years ago in a discussion about my annual mileage, a rep from AAA quoted the odometer reading from a smog test on my vehicle. Orwell was right!


Probably the CHIP in your CAR COMPUTER told them.
Even If you decline OnStar services,G.M. retains the right to collect and SELL your data !
Don't take my word,look it up( think- no smart t.v.'s in my house Mr. Orwell.)


----------



## tohunt4me

.you can gut the system.video and instruction on Youtube.


----------



## tohunt4me

Just like Volkswagen programmed their TDI DIESEL computers to detect. Emissions equipment and fly right when present . . . .you have NO idea what your car computer is up to.


----------



## tohunt4me

Older Chauffeur said:


> I think insurers have similar access. Several years ago in a discussion about my annual mileage, a rep from AAA quoted the odometer reading from a smog test on my vehicle. Orwell was right!


Your car computer information IS sold to insurers and police,among many others.


----------



## Older Chauffeur

tohunt4me said:


> Probably the CHIP in your CAR COMPUTER told them.
> Even If you decline OnStar services,G.M. retains the right to collect and SELL your data !
> Don't take my word,look it up( think- no smart t.v.'s in my house Mr. Orwell.)
> View attachment 33506
> View attachment 33506


I don't know how that would work on a '93 Toyota pickup, but I suppose anything is possible. I figured they just pulled the DMV records on my vehicles along with my driving record at renewal time.
But if it was as easy as them getting a message from a computer chip, they wouldn't have to ask me, as they do nowadays, for the odometer readings on each of my cars annually.


----------



## nc231144

One thing I would recommend is downloading an app that tracks your business mileage for you. This would include more than just when you have people in your car. The mileage you drive in-between rides would count as well for a tax deduction. One app I know works well is called Mile IQ.


----------



## JBFarmer

Hi! I know this was an old post but I just wanted to say thanks, you gave me some helpful info. Your post answered some questions I had. Sorry some people were being jerks to you.


----------



## Geno71

JBFarmer said:


> Hi! I know this was an old post but I just wanted to say thanks, you gave me some helpful info. Your post answered some questions I had. Sorry some people were being jerks to you.


Um, I don't think they were being jerks. You shouldn't use OPs info as advice as it was all kinds of wrong, so do yourself a favor and read other threads where people actually know what they're talking about.


----------



## SEAL Team 5

Roogy said:


> $313 for waters and snacks? On just $2800 in gross fares? Gotta say that is some creative accounting.


I know this is an old thread, but $859 in gas on $2800 gross revenue? What the hell are you driving, a SUV with a blown big block?


----------



## aeiou_-

SEAL Team 5 said:


> I know this is an old thread, but $859 in gas on $2800 gross revenue? What the hell are you driving, a SUV with a blown big block?


As long as there is proof to back it up, like a mileage log and gas receipts, it's valid.


----------



## SEAL Team 5

aeiou_- said:


> As long as there is proof to back it up, like a mileage log and gas receipts, it's valid.


It's going to look pretty ridiculous when his 4 door subcompact is only getting 3 mpg. My full size V8 SUV consumes 8-10% of revenue, not 30% like he is claiming. Out of the ordinary throws up red flags for audits.


----------



## DexNex

CJ ASLAN said:


> If an audit happens, I'll worry about it then. I highly doubt I will be audited. So while you all are so concerned for me, I will enjoy this shrimp fried rice and finish up my work.
> 
> But thank you for the insight.


So you came here to share, and once you were given insight you dismissed it.

You are a jerk.


----------



## aeiou_-

SEAL Team 5 said:


> It's going to look pretty ridiculous when his 4 door subcompact is only getting 3 mpg. My full size V8 SUV consumes 8-10% of revenue, not 30% like he is claiming. Out of the ordinary throws up red flags for audits.


That depends. Look at it this way, uber ant drives car that is not economical on uberx platform. uber ant fills tank. uber ant drives all day with little to none pings, driving all over the city of los angeles. uber ant only grossed 100 dollars in 10 hours today. uber ant did this 28 days in a row. 28 days of driving 10 hours straight cost uber ant $25 dollars a day in gas. I've been personally picked up in a Charger as a rider, before. I've seen other people driving other ridiculous 8V vehicles.

Your SUV doesn't is parked most of the day. Your rates are higher, too. So, that makes sense.

Overall, I do agree it's a little suspicious. But if you have the proof, even if suspicious, there should be no problem when audited.. is all I was saying.


----------



## Gung-Ho

I'm not about to read through this entire thread but did anybody at anytime question the fact he took ACTUAL EXPENSES and claimed a loss.

So if fact unless his sharpie of $60 tax prep guy didn't grossly and fraudulently inflate his expenses he just proved that he LOST money driving for uber.


----------



## Geno71

No OP admitted right in the beginning that his "accountant" did use some "creative math", and then stated that he won't worry about anything unless he gets audited, which IMO is a very wrong way of looking at this.


----------



## Sub Guy

Tristan Zier said:


> For Uber, they include the Safe Rides Fee in the amount they processed for you, so it's included in the gross amount on your 1099-K. That means you record it as both an earning and equal offsetting expense (so it nets to $0 and doesn't affect your taxes or tax bracket).
> For Lyft, they did not include the Trust and Safety Fee in the amount they processed for you (could just be due to the specifics of how they bill the customer), so you do not include that as an earning or an expense.


Just starting to look at this year's taxes (first year driver) and while I see the commissions and safe fee show up as gross income and an allowable expense I have a question. Isn't our Self Employment Tax (Social security) based on our gross income vice net? So deducting the expenses will avoid paying federal tax on the SAFE Fee and Uber Fee we (the drivers) still pay SS on money we never saw?


----------



## Older Chauffeur

Sub Guy said:


> Just starting to look at this year's taxes (first year driver) and while I see the commissions and safe fee show up as gross income and an allowable expense I have a question. Isn't our Self Employment Tax (Social security) based on our gross income vice net? So deducting the expenses will avoid paying federal tax on the SAFE Fee and Uber Fee we (the drivers) still pay SS on money we never saw?


No, FICA (Social Security/Medicare) is figured on your net profit from self employment. If your net is less than $400, you won't owe FICA.


----------



## Sub Guy

Older Chauffeur said:


> No, FICA (Social Security/Medicare) is figured on your net profit from self employment. If your net is less than $400, you won't owe FICA.


thank you for the information.


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## Paulokc

I drove part-time over 2 months I made $165 I spent about $85 in gas and car washes.
Is Uber going to send me a 1099? What do I need to do I have my W-2 from my real job and I'm ready to get my taxes done


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## Older Chauffeur

Paulokc said:


> I drove part-time over 2 months I made $165 I spent about $85 in gas and car washes.
> Is Uber going to send me a 1099? What do I need to do I have my W-2 from my real job and I'm ready to get my taxes done[/QUOTE
> Uber isn't required tom send you a 1099 unless they paid you at least $600. They include their commission and SRF, etc. So if you are having your taxes done, give that person this information. If you are doing your own, list the income and expenses on Schedule C (profit or loss from business.)
> FYI, if you're still driving, tracking and logging your car's odometer readings will likely result in a better deduction. Unless you are washing your car very often just for Uber, those expenses would be considered normal by the IRS, and not deductible. Tracking all Uber related miles, with pax and dead, would allow you to deduct $0.54 per mile.


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## Paulokc

If over was going to send me a 1099 would I have received it by now? I do my taxes with TurboTax am I going to have to use that more expensive form that's like $89?


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## Older Chauffeur

Paulokc said:


> If over was going to send me a 1099 would I have received it by now? I do my taxes with TurboTax am I going to have to use that more expensive form that's like $89?


There are less expensive versions of T/T, like the Deluxe version in CD format, which has Schedules C and SE. You can buy it at Costco or online at Amazon or Walmart. I believe Sam's Club has it as well. The one with a state return included is about $40 on sale at Costco through Jan 31. If you don't need to file a state return I think someone posted that it is $30.
If you are filing online they may force you to use the Home and Business version. That's Intuit's marketing plan at work.
The last day for companies to issue 1099's is also Jan 31.


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## Uberdriver11

Older Chauffeur said:


> There are less expensive versions of T/T, like the Deluxe version in CD format, which has Schedules C and SE. You can buy it at Costco or online at Amazon or Walmart. I believe Sam's Club has it as well. The one with a state return included is about $40 on sale at Costco through Jan 31. If you don't need to file a state return I think someone posted that it is $30.
> If you are filing online they may force you to use the Home and Business version. That's Intuit's marketing plan at work.
> The last day for companies to issue 1099's is also Jan 31.


I tried to do with the cd version but it's still asked me to upgrade or continue with deluxe which is harder to do I think.. maybe I will try calling t/t how to do it


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## Older Chauffeur

Uberdriver11 said:


> I tried to do with the cd version but it's still asked me to upgrade or continue with deluxe which is harder to do I think.. maybe I will try calling t/t how to do it


Sorry, but what are you trying to do, and why should continuing with Deluxe be harder?
I get those offers to upgrade as well, but I just select the "continue" option. Intuit wants your money.


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## Uberdriver11

Older Chauffeur said:


> Sorry, but what are you trying to do, and why should continuing with Deluxe be harder?
> I get those offers to upgrade as well, but I just select the "continue" option. Intuit wants your money.





Older Chauffeur said:


> Sorry, but what are you trying to do, and why should continuing with Deluxe be harder?
> I get those offers to upgrade as well, but I just select the "continue" option. Intuit wants your money.


 I called t/t they were really helpful. U r right deluxe is more than enough to file 1099..do u know how many people can file with the cd my dad also did Uber


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## Older Chauffeur

Uberdriver11 said:


> I called t/t they were really helpful. U r right deluxe is more than enough to file 1099..do u know how many people can file with the cd my dad also did Uber


I'm not sure about the number, but two shouldn't be a problem. It may be as many as five per CD.


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## Buddywannaride

Roogy said:


> $313 for waters and snacks? On just $2800 in gross fares? Gotta say that is some creative accounting.


Lol. Wow that is some pricey water and thirsty customers. LOL. Best laugh of the day.


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## jameszeee

I have a question about entering my Uber loss on form 1040.
I need to enter my business loss on form 1040, Line 12, and I'm wondering
what the limit on this loss can be.
Is there a limit on the loss you can claim from being an Uber driver?

I've reviewed the IRS website and can not find any dollar amount listed, but yet there were a few comments insinuating that there are limitations on the amount of loss you can claim.

TY


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## UberTaxPro

jameszeee said:


> I have a question about entering my Uber loss on form 1040.
> I need to enter my business loss on form 1040, Line 12, and I'm wondering
> what the limit on this loss can be.
> Is there a limit on the loss you can claim from being an Uber driver?


No, but there will be a limit on how much loss you can carry-forward when the new tax law goes in effect.


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## Sub Guy

Also, if UBER is not your only occupation, the business loss you endure reduces your taxable income from primary job. You may be more likely to trigger an audit if you claim a loss for 3 or more years in a row (who would stay in a business where they lose money year after year?). Also, read the instructions carefully. MOST drivers will be better served by the standard deduction as the uber fees, license fees, supplies, insurance, roadside assistance plan, car washes, etc. are still deductible. Itemization/standard deduction only applies to the vehicle operating costs (gas, tires, belts, tuneups, depreciation, oil, etc.) The Ancillary costs associated with the business, even if for the car (hands free mount, charging cables, etc. are still deductible.


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## CowboyMC

Tristan Zier said:


> I would be worried about this tax person, and would not recommend him. (I'm a former CPA, by the way.) I would also immediately ask him about a few very obvious issues:


I agree. This tax guy doesn't know what he's doing. I have been professionally prepared taxes for over 20 years. Stay away from this guy. He will get you audited.


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## AuxCordBoston

jameszeee said:


> I have a question about entering my Uber loss on form 1040.
> I need to enter my business loss on form 1040, Line 12, and I'm wondering
> what the limit on this loss can be.
> Is there a limit on the loss you can claim from being an Uber driver?
> 
> I've reviewed the IRS website and can not find any dollar amount listed, but yet there were a few comments insinuating that there are limitations on the amount of loss you can claim.
> 
> TY


What is the dollar value of the loss you want to claim? Also, what caused such as loss?


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## Coffeekeepsmedriving

AuxCordBoston said:


> What is the dollar value of the loss you want to claim? Also, what caused such as loss?


you cant just file a loss...you have to do the exceptions of costs...gas,car wash etc and put that on one line..
thank fill out your income and see what it comes too.
keep receits and dont lie..pay what you owe in taxes..


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## AuxCordBoston

Coffeekeepsmedriving said:


> you cant just file a loss...you have to do the exceptions of costs...gas,car wash etc and put that on one line..
> thank fill out your income and see what it comes too.
> keep receits and dont lie..pay what you owe in taxes..


Will the IRS audit you? That's the question


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## Coffeekeepsmedriving

no


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## AuxCordBoston

Coffeekeepsmedriving said:


> no


Awesome!


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## Older Chauffeur

I wouldn't believe the IRS if they said they won't audit me, let alone anyone else. Even my CPA, who has done my returns for 17 years won't tell me I won't be audited.


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## gofry

If your expenses outweigh your earnings, why on earth do you do this?


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## surlywynch

gofry said:


> If your expenses outweigh your earnings, why on earth do you do this?


Tax loss harvesting against other gains.


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## gofry

surlywynch said:


> Tax loss harvesting against other gains.


Except you have to drive for hundreds (if not thousands) of hours and beat your car up for this small tax loss. It's crazy.


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