# How much did you pay in taxes?



## pomegranite112 (May 14, 2017)

I want to know how much I would expect to pay to the IRS when that time comes around. I bought a mileage expense book so I can easily track my miles. I record everything but I'm not sure what I'd end up paying. 

Out of the amount that you guys make, how much do you pay?


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## Older Chauffeur (Oct 16, 2014)

pomegranite112 said:


> I want to know how much I would expect to pay to the IRS when that time comes around. I bought a mileage expense book so I can easily track my miles. I record everything but I'm not sure what I'd end up paying.
> 
> Out of the amount that you guys make, how much do you pay?


Everybody's different, depending on their individual situation when it comes to taxes. You are off to a good start by tracking mileage. Be sure to list actual odometer readings for the start and end of each shift.
Reading related threads here it would appear that for most drivers, expenses greatly reduce taxable income to near zero, or even even a loss against other income.
If you do show a profit, the threshold amount for FICA is $400, even if you don't owe income tax. That rate is 15.3% on all profits, because as a self employed filer, you pay both the employer and employee shares.
There's lots of good info in the tax section here. Pay special attention to posts by UberTaxPro. Unlike me, he is a tax professional.


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## Mars Troll Number 4 (Oct 30, 2015)

pomegranite112 said:


> I want to know how much I would expect to pay to the IRS when that time comes around. I bought a mileage expense book so I can easily track my miles. I record everything but I'm not sure what I'd end up paying.
> 
> Out of the amount that you guys make, how much do you pay?


That depends on your market, even more so than how much you actually work.

Local tax rates vary from 0% (Florida) to 9% (California at 50,000 per year)

Throw that on top of the 15% and you have a large variation. (even if you can deduct state income tax off your federal bill)

Then you have a 250% variation in uber pay rates between the bottom market (Orlando) and the top market (NYC)
71c a mile VS 1.75

However what you can deduct per mile is constant across the country, meaning that in Orlando PER PAID MILE..

Orlando
71c paid per mile and 54c a mile deducted = 17c per paid mile in taxable revenue
VS

Seattle (not using NYC because NYC is a special case)
$1.35 paid per mile - 54c deducted = 81c

There's a huge difference between 81c in taxable profit per mile and 17c, it's almost 5 times higher.

Some markets will naturally generate much higher tax bills than others. Seattle WILL result in a tax bill.. Orlando will probobly result in a bigger tax refund from another job.


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