# Noob tax question



## Owneroperator (Jul 12, 2017)

We only owe SECA tax on our net profit correct? Just like our income tax?

For example and to keep it simple: if I made a gross of 20,000 and had a mileage deduction of say 5,000. I only need to calculate our self employment tax, along with my income tax on $15,000 right?

Because isnt mileage a business expense and reported on line 9 on sch C.

Sorry first year having to do a sch C.


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## UberTaxPro (Oct 3, 2014)

yes


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## roadman (Nov 14, 2016)

Owneroperator said:


> We only owe SECA tax on our net profit correct? Just like our income tax?
> 
> For example and to keep it simple: if I made a gross of 20,000 and had a mileage deduction of say 5,000. I only need to calculate our self employment tax, along with my income tax on $15,000 right?
> 
> ...


Grossed $20,000 on 5,000 miles in fairytale land.


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## Owneroperator (Jul 12, 2017)

roadman said:


> Grossed $20,000 on 5,000 miles in fairytale land.


Sorry Roadman, my business is very much like uber as I'm a single owner operator with same deduction etc as uber drivers but I am a NEMT provider. I average 5-8,000 per month revenue.


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## Owneroperator (Jul 12, 2017)

UberTaxPro said:


> yes


Thank you Ubertaxpro...

I have no idea why QB self employed is saying I owe so much and isnt deducting mileage correctly in my opinion.


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## Uber Crack (Jul 19, 2017)

UberTaxPro said:


> yes


Please help. Noob tax question. I usually do my taxes once a year in April. I have another job. 
IF I have evidence that I owe no uber taxes (mileage write off > than uber income... Do I have to do supplemental taxes? Or can I do taxes once a year? This is my second year on. I filed in April for last year. Thanks so much for being here.


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## UberTaxPro (Oct 3, 2014)

Uber Crack said:


> Please help. Noob tax question. I usually do my taxes once a year in April. I have another job.
> IF I have evidence that I owe no uber taxes (mileage write off > than uber income... Do I have to do supplemental taxes? Or can I do taxes once a year? This is my second year on. I filed in April for last year. Thanks so much for being here.


If you have 0 or little Uber NET income and only a W2 job there is no need to file estimated taxes during the year.


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## Uber Crack (Jul 19, 2017)

UberTaxPro said:


> If you have 0 or little Uber NET income and only a W2 job there is no need to file estimated taxes during the year.


Thank you so much


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## ShinyAndChrome (Aug 18, 2017)

Since OP's answer is made, I'm going to tag another question(s) on about these taxes.  Like many here I've only ever had a W2, and employer and I already pay the SECA between us.

I understand any taxed income over $400 has to have this payroll of 15.3% paid.

1) Is that $400 per job or per person (probably)? e.g. I make $50k in my primary job with W2. I then make $1000 uber, but my mileage deduction kicks in first, bringing uber earnings down to $200. Do I pay 15.3% on that $200 because my earnings are now $50,200?

2) I know that with enough miles deducted I can end up with Uber being negative income; the mileage will bring the Uber earnings below $0 so I actually pay less taxes than if I only had my W2 job. This means that mileage deduction first applies to the job in which it is relevant, and then it crosses over into my "general income" for a deduction against my overall tax liability, even for money made in a different job. Now if I made $1000 on Uber after taking my mileage deduction and any other deductions made only in the uber job, I suppose I can't leverage standard or itemized deductions to get below that $400, can I? I can for federal and state income on the uber earning potentially, but I'm stuck with that 15.3% now on the $1000 regardless of other deductions?


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## UberTaxPro (Oct 3, 2014)

ShinyAndChrome said:


> Since OP's answer is made, I'm going to tag another question(s) on about these taxes.  Like many here I've only ever had a W2, and employer and I already pay the SECA between us.
> 
> I understand any taxed income over $400 has to have this payroll of 15.3% paid.
> 
> ...


For tax purposes all your income gets grouped together and becomes your Gross Income. For example, if you have a W2 job and Uber part time, your Gross income would be your W2 total (before taxes) + your Uber NET income. From this Gross Income you'll deduct using the standard deduction or your itemized deductions and will get credit for any taxes paid on your W2 and estimated taxes paid.

Question 1. per person, yes, and you'll owe income tax in addition to the 15.3% for self employment taxes on the $200

Question 2. You'll only pay SE taxes and income tax on your NET Uber income. The standard deduction comes after your NET Uber income has been calculated. Think of how it would work if you had two jobs and two W2's. It works the same just that now you have to pay the taxes on one of them! But you'll only pay on your NET income which is the 1099 total minus all your business deductions. Think off it like this....your net uber income is equivalent to the gross amount on a W2 (not sure if this answers your question!)


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## ShinyAndChrome (Aug 18, 2017)

UberTaxPro said:


> For tax purposes all your income gets grouped together and becomes your Gross Income. For example, if you have a W2 job and Uber part time, your Gross income would be your W2 total (before taxes) + your Uber NET income. From this Gross Income you'll deduct using the standard deduction or your itemized deductions and will get credit for any taxes paid on your W2 and estimated taxes paid.
> 
> Question 1. per person, yes, and you'll owe income tax in addition to the 15.3% for self employment taxes on the $200
> 
> Question 2. You'll only pay SE taxes and income tax on your NET Uber income. The standard deduction comes after your NET Uber income has been calculated. Think of how it would work if you had two jobs and two W2's. It works the same just that now you have to pay the taxes on one of them! But you'll only pay on your NET income which is the 1099 total minus all your business deductions. Think off it like this....your net uber income is equivalent to the gross amount on a W2 (not sure if this answers your question!)


I think it does and thanks again for the helpful answers 

So, 2016 taxes: assume last year I made $50k only W2 job. Arguments sake I pay 10% total tax rate including all taxes (pay roll, federal, state). But, I had $10k in deductions, so $40k @ 10% tax rate I had to pay $4k last year in taxes.

2017 taxes: W2 job exact same as last year. But additionally I got $10k from Uber. My only deductions on the Uber gig were miles, which saved me $9000 against that, meaning $1k from Uber is taxable. My gross income was therefore $51k vs last year's $50k. $1k of that is "special", because it was self-employed, so I have to pay 15.3% on that $1k, or $153. I then kick in my same $10k deduction as last year, so pay my 10% other taxes on $41k, or $4253 total.

Is that about right or am I messing it up?


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## UberTaxPro (Oct 3, 2014)

You've got it! By the way that 15.3% is getting paid on the W2 also, you're just paying 1/2 of it. So the extra expense is really 7.65% more than if you had a W2. Also, you'll get another deduction for the extra 7.65% paid in addition to the SD. before your PERSONAL NET INCOME (what you pay tax on) is calculated.


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## ShinyAndChrome (Aug 18, 2017)

Thanks, UberTaxPro. Super appreciated on a Sunday


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