# Am I estimating my 2018 tax liability correctly?



## Isitworthit (Jan 18, 2018)

I just started driving Uber/Lyft full time this year and am not sure I'm estimating my end of year tax liability correctly. Never had significant 1099 income before.

My Jan & Feb earnings are:

$5,100 net pay (checking account deposits)
subtract $3,406 SMR deduction for 6,250 online miles (54.5 cents/mile)
= $1,694 taxable income
15.3% self employment tax = $259
13% income tax = $220 (13% is based on married/joint filing with approx $60K w2 income and homeowner deductions) 
Tax total = $479 owed on the $5,100 I earned in two months.
So multiply by 6 to estimate annual earnings of $30,600 that would leave a total tax due of 479 X 6 = $2874.
Am I correct to assume that my TurboTax software for 2017 tax year will help me estimate quarterly payments for 2018 and those should be about $725 each quarter ($2900/4)?

Thanks in advance!


----------



## Older Chauffeur (Oct 16, 2014)

Your numbers sound reasonable, subject to the changes coming with the new tax regs for 2018. But I'm not sure that TurboTax will give you an accurate estimate for quarterly payments based on 2017 if you weren't working for Uber/Lyft full time. Maybe they let you put in estimated earnings for this year like you have posted here.

Disclosure: I'm not a tax professional.


----------



## SEAL Team 5 (Dec 19, 2015)

Isitworthit said:


> I just started driving Uber/Lyft full time this year and am not sure I'm estimating my end of year tax liability correctly. Never had significant 1099 income before.
> 
> My Jan & Feb earnings are:
> 
> ...


It looks like your doing it pretty good. You can also deduct a portion of your wireless/data bill before paying SE tax. You'll be happy to know that part of the SE tax that you paid is tax deductible on your 1040 Schedule A.


----------

