# Pay for gas when in the negative for mileage?



## dokhollidai (Oct 29, 2015)

Ok so after much reading I think I have somewhat of an idea on what to do about taxes. This is my first week and after crunching some numbers for my first 3 trips, I'm unsure how I will be able to set aside money to reimburse myself for gas in my situation. Here are my calculations for money made after uber fees:
Total: $16.18
Miles: 100 (I'm new so I'm still trying to figure out hot spots and times in my area)
Gas: 4 gal @ $2.53/g =$10.12
Deductions: 100 x 0.575= $57.50
$16.18 - $57.50= -$41.32

So I was planning on setting aside 30% for taxes at the end of the year, but how do will I be able to do that if I reimburse myself for gas? Do I just set aside 30%, reimburse myself for gas, keep the rest (if any), or since I'm in the negative with my mileage will I not have to pay any taxes? Im all sorts of confused on what the hell to do, any help would be appreciated.


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## Disgusted Driver (Jan 9, 2015)

To answer your question: If you are negative because of mileage deduction, you don't owe any taxes, no need to set aside. 

That should however lead to a new question: Since I am losing money, why am I doing this? I'm assuming you'll get your dead miles down BUT good luck actually making a decent wage. Don't let them help you kill your car before you figure that out.


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## dokhollidai (Oct 29, 2015)

Disgusted Driver said:


> To answer your question: If you are negative because of mileage deduction, you don't owe any taxes, no need to set aside.
> 
> That should however lead to a new question: Since I am losing money, why am I doing this? I'm assuming you'll get your dead miles down BUT good luck actually making a decent wage. Don't let them help you kill your car before you figure that out.


Awesome, that clears it up for me. Your advice is well taken, after really looking at all the potential pitfalls of this business I decided to just try it for a month or so and see if its worth it. All the hidden costs that you don't think of when you first think about driving is much more than I expected. I definitely don't plan on doing it full time. I live in a pretty big college town so I figure at least if I only drive during big events (Halloween, St. Patty's, New Years, Football Games, other misc college holidays) I could make some decent pocket change without killing my car. Or just do one or two quick rides on my to and from class (since I'm using my car anyway).


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## Disgusted Driver (Jan 9, 2015)

dokhollidai said:


> Awesome, that clears it up for me. Your advice is well taken, after really looking at all the potential pitfalls of this business I decided to just try it for a month or so and see if its worth it. All the hidden costs that you don't think of when you first think about driving is much more than I expected. I definitely don't plan on doing it full time. I live in a pretty big college town so I figure at least if I only drive during big events (Halloween, St. Patty's, New Years, Football Games, other misc college holidays) I could make some decent pocket change without killing my car. Or just do one or two quick rides on my to and from class (since I'm using my car anyway).


That would be the most sensible way to approach it. Also, if you are a night owl, hour or so around bar closing can be good. The trick is to only work when there's a surge. I might only venture from the house from 1-3am on a Sat. night and make $50-60 with a little luck. If you can treat the money as a good supplement but not essential you will be ok.


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## Davesway10 (Aug 7, 2015)

to some degree everyone puts on a lot more miles their first few weeks, you'll get better at managing your miles. As far as taxes go, you won't owe any for that example.


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## radzer0 (Oct 26, 2015)

People always say that your actually loosing money. Unless you bought your vehicle for uber you would be paying that note with or without working. And that writeoff is for tax purposes. Its not what we actually do its just a simplified solution so that taxes dont have a different number for every vehicle. If you do this for a second job and you make money on the other one the negative will also offset it.


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## Uberselectguy (Oct 16, 2015)

dokhollidai said:


> Ok so after much reading I think I have somewhat of an idea on what to do about taxes. This is my first week and after crunching some numbers for my first 3 trips, I'm unsure how I will be able to set aside money to reimburse myself for gas in my situation. Here are my calculations for money made after uber fees:
> Total: $16.18
> Miles: 100 (I'm new so I'm still trying to figure out hot spots and times in my area)
> Gas: 4 gal @ $2.53/g =$10.12
> ...


Sorry .. Once you deduct for self employment taxes you will be operating at a loss. That's just the way it is.


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## radzer0 (Oct 26, 2015)

Uberselectguy said:


> Sorry .. Once you deduct for self employment taxes you will be operating at a loss. That's just the way it is.


I will have to agree with this one. Unless you did alot of driving for personal non uber related. You wont make any profit at all. But I will say that if you loose money there is no taxes to be paid. If the loss is too large tho without other income the IRS may start to look at you and cause audit headaches.


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## Uberselectguy (Oct 16, 2015)

There are many many more ways to lose income and incur write offs than driving for uber.

I volunteer for charities, deduct the mileage driven.

I take calculated risks in the stock market, sometimes I lose.

I donate money, makes me feel good.

It does not make me feel good driving for uber and putting revenue into such a selfish, self serving company. Best feeling I've had in a long time was the day I hand delivered my termination letter to uber.


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## dokhollidai (Oct 29, 2015)

Thanks all. I've gotten better as the week went on at managing my miles as I've started figuring out the hot areas and times. One thing I've been doing quite a bit is turning on the app while I'm on my way to class or running errands. The way I figure it, the miles are deductible and I don't really count those miles as an operating cost because I was going to do those things regardless. After Halloween I ended up in the black for the week, depending on how you want to look at it. Wear and tear isn't so much an issue for me because I am a homebody and MAYBE put 8k miles/year on my car without doing uber, plus I live in a college town so nobody is really going very far maybe avg 1.5 miles. The way I see it, if I'm making a few bucks on the way to doing something I was already going to do anyway, its a win. Or on huge nights like last night with 5.7x surges


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## CowboyMC (Aug 26, 2014)

radzer0 said:


> People always say that your actually loosing money. Unless you bought your vehicle for uber you would be paying that note with or without working. And that writeoff is for tax purposes. Its not what we actually do its just a simplified solution so that taxes dont have a different number for every vehicle. If you do this for a second job and you make money on the other one the negative will also offset it.


What you are missing is that all that extra mileage is wearing out your car faster then if you didn't do Uber. So instead of having that car for ten years, you have it for 3 years. That means you would have to buy three cars if you do Uber.


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## UberTaxPro (Oct 3, 2014)

dokhollidai said:


> Ok so after much reading I think I have somewhat of an idea on what to do about taxes. This is my first week and after crunching some numbers for my first 3 trips, I'm unsure how I will be able to set aside money to reimburse myself for gas in my situation. Here are my calculations for money made after uber fees:
> Total: $16.18
> Miles: 100 (I'm new so I'm still trying to figure out hot spots and times in my area)
> Gas: 4 gal @ $2.53/g =$10.12
> ...


If you have a "real job" you'll be able to reduce taxable income from that job from your negative uber income. Some consolation anyway but it doesn't make it worth it.


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